The rentals market surges ahead in major centres, particularly Johannesburg and Cape Town. PGP’s rentals manager in Gauteng, Shaun Groves, says that agents could fill double the number of homes they are concluding but for a shortage of stock. “Demand is extremely strong and competition for mandates is fierce,” he adds.
Dexter Leite, PGP rentals manager for the Cape Metro region, reports unflagging appetite for rental homes in all areas of Cape Town and across all price ranges. “Most significantly,” he adds, “there are high activity levels at the top end of the market and some notable rental prices have been achieved.” He adds: “Demand for rentals generally picks up from spring through summer, tempered by stock availability in the categories and areas which are in demand.”
Since March, Leite’s rental division has included 24 high-end leases on the Atlantic Seaboard and in the Southern Suburbs at rates between R20 000 and R55 000 a month. Of these, nine were corporate lets, one to an embassy and five were international clients. May and June Cape Town rentals concluded give a useful picture of market activity: The recent Rode Report on the residential market lists Johannesburg as having the strongest growth for flat rentals – at a nominal rate of 4%.
Shaun Groves highlights demand in a number of suburbs and nodes. “For example, demand in Bryanston has been exceptional over the past two or three months and Parkhurst continues unabated.” July was a bumper month, with 31 leases signed. Other areas include high-end Sandton and Morningside as well as “the Parks” – Parktown, Parkview etc. Melrose Arch rentals have been steady with a number of rentals in the R24 000 to R37 000 a month band.
Article by: Stuart Murray, editor of PGP’s IP magazine