Property agents Seeff have identified that young job market entrants rank moving into a place of their own high on their list of priorities.
The desire for independence and the achievement of being able to take care of themselves are some of the reasons why young people enter the rental market.
According to a recent Payprop Rental Index, the Western Cape is the most expensive province to live in. The current average rental cost in the province is R8 777 per month. The national average rental cost is R7 308 per month.
More than 31% of rentals fall into the affordable bracket (R5 000 – R7 000), with 16% of rentals falling into the expensive bracket bracket (R10 000 and upwards). Young professionals will spend between 31%-34.5% of their income on rent.
Important considerations before looking for an apartment include ensuring that you are able to afford the monthly rent. As a guideline, monthly rent should not consume more than 30%- 40% of your monthly income.
Woodstock, Observatory, Claremont, Kenilworth, Plumstead and Diep River
Popular areas in Cape Town include Woodstock, Observatory, Claremont, Kenilworth, Plumstead and Diep River.
For a one bedroom apartment in the Southern Suburbs, expect to pay between R7 500 and R10 000 per month. A two-bedroom apartment can cost between R9 000 and R20 000 per month.
According to Seeff agents, Diep River and Plumstead are up-and-coming areas, where a two-bedroom apartment ranges between R7 000 and R8 500 per month.
The Woodstock area is also very popular, with the new Ironworks development coming onto the market for long-term rentals. A small one bedroom apartment starts at R10 500 per month, and a two bedroom unit starts at R14 500 per month.
Cape Town CBD
The CBD is wildly popular among young professionals, as it is convieniently close to work for many. It also allows ease of access to many attractions of the Atlantic Seaboard.
An unfurnished studio apartment in the CBD rages from R8 500 to R10 000, and a one bedroom apartment will range between R10 000 and R12 000. A two bedroom apartment that is unfurnished will cost between R12 000 and R15 000 per month.
Furnished apartments cost about 20% more.
Sea Point, Green Point, Three Anchor Bay
Sea Point and surrounds are also popular. Rental rates for studios can range from R8 000 to R10 000. One bedroom apartments can range from R9 500 to R12 000, and two bedroom apartments from R15 000 R25 000.
The Blouberg area is particularly popular with young professionals who want a seaside lifestyle.
There is a large choice of sectional title complexes across the neighbourhood, ranging from affordable apartments in the old Parklands and Table View areas to beach apartments in Wave’s Edge, Bloubergsands, West Beach and Big Bay, he said.
Rentals start at R6 500 per month for a one bedroom unit in Parklands/Table View to around R8 000 per month for two bedrooms.
Apartments closer to the beaches range from around R10 000 per month for two bedrooms and upwards of R13 000 for three bedrooms.