Luxury Property rentals are resurging in Cape Town and Gauteng
Category News
Despite the economic nightmare of a global pandemic and nationwide lockdowns, high-end-luxury property within both Gauteng and the Western Cape continues to see demand on local and international levels.
This is especially true within the rental scene, where travellers worldwide see the potential upsides of renting high-end homes and using them as either holiday retreats or half-year homes to avoid the frigid winters. As such, interest in some of South Africa's most prestigious neighbourhoods remains as stable as it had been during pre-Covid levels. We take a closer look at some of these areas and break down the unique attractions which keep investor interests soaring.
Record rentals on the Atlantic Seaboard
2022 has seen a record uptick in luxury rentals. This is especially true within the suburbs of Fresnaye, Camps Bay, and the City Bowl. Both local and foreign tenants are happy to pay rentals of up to R100,000 per month, particularly within the iconic sea town of Camps Bay.
The only downside to this demand is that stock is in short supply, meaning that homeowners looking to rent out their property within these areas may be in short distance of lucrative opportunities should they decide to enter the market. One thing to remember is that due to the short supply, most real estate professionals estimate that rental prices will likely increase by 15% to 20% come 2023.
International eyes are on Sandton and the Northern Suburbs.
Much like the Western Cape's appeal to foreign nationals from the Northern Hemisphere, the great suburbs of Sandton and Northern Johannesburg brought an impressive amount of rentals from foreign investors inside the continent.
The demand is more so attracted to the relative variety of lifestyle estates endemic to Johannesburg. Overall, homes within areas such as Morningside or Duxberry will fetch anywhere between R25,000 - R50,000 a month, whereas the auspicious suburbs of Hyde Park and Sandhurst generally range in the R70,000 plus margin. These luxury homes offer renters the freedom and security that most only dream of.
Generally, the type of renter seeking out property in Johannesburg is looking to relocate for work. The more affluent the individual, the more likely they are to approach practitioners who list within the inner Sandton Suburbs for the sake of convenience.
Pretoria East is a rental hotspot.
A little-known fact, but Pretoria East is home to some of South Africa's most coveted luxury lifestyle estates. Some of these include the coveted Silver Lakes Golf Estate, Willow Acres Estate, and Heron Hill Garden Estate, to name but a few.
Much like the demand in Johannesburg, Pretoria East offers discerning renters the freedom and security which completes one's dreams of having a carefree lifestyle in South Africa. Because of its unique setting as the legislative capital, the type of renter usually falls into the category of foreign embassy staff and government officials. As such, security is clearly on par with these desires.
The rental rates for luxury homes range between R30,000 and between R70,000 and R80,000 per month, with tenants prioritising security and lifestyle.
Foreign investment in the Winelands
While it's no surprise that most foreign investment visits the shores of the Western Cape, what should also be noted is the influx of semigration from other provinces. This is particularly true of the Western Cape Winelands, which are seeing high demand from both investor types.
Semigration to the Winelands area is noted for its peaceful and tranquil setting where the impetus to rent before they buy is a favoured option for tenants. Property within these areas may rent anywhere from R8000 - R55,000 depending on the type of property and where it is situated in this vast stretch of land. Regardless of this, the Western Cape still remains the most attractive province in the country.
Contact us today
Whether you're in the market to sell your home or if you're considering renting out for seasonal investors, there is no better time than now to contact one of our experienced property practitioners. Our door is always open if you're looking for more information on how to make the most of your investment.
Read our previous article here:
Contact Hamiltons Property Portfolio for all your buying or selling requirements:
Johannesburg (Head Office): 011 463 0155
Cape Town: 021 418-0328
Garden Route: 044 050 3295
Eastern Cape: 076 927 778
Winelands: 082 825 9020
Or email reception@hamiltons.co.za
Hamilton's Property Portfolio holds a Fidelity Fund Certificate issued by the Property Practitioners Regulatory Authority.
Author: Bryce Anderson