Cape Town continues to have the most expensive rental areas in South Africa.
Also read: Cape Town’s high-end rentals soar in recent months
This is according to data from the most recent Rode’s Report on the South African property market, which listed average rental rates for a variety of areas throughout the country.
According to the report, national flat vacancy rates increased from 6.9% in Q3 2023 to 8.1% in Q4 2024. Nonetheless, vacancy rates fell from an average of 8.3% in 2022 to 7.2% in 2023.
The Western Cape has a flat vacancy rate of 2.8%, while Gauteng and KwaZulu-Natal have double-digit rates.
In the midst of the cost-of-living crisis, many South Africans are likely to continue renting rather than buying, according to the report.
‘Currently, more households choose to rent rather than to buy, primarily due to the high prime lending rate of 11,75%. Prospects for the economy over the next few years are not bright (low growth in household incomes), and although interest rates will likely decline, they will not drop again to the ultra-low pandemic levels,’ reads the report.
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‘Thus, it will remain cheaper to rent than to buy over the short term, and it would make sense − purely from a financial point of view − to rent and religiously save the difference between the rent and what the bond instalments would have been.’
‘After a few years of saving, a buyer could use the savings for a higher deposit to buy a home, which by then will probably be lower priced in real terms than now. The catch is that few households have
the iron will to religiously save the difference between the rent and the instalment.’
The Waterfront in Cape Town is the most expensive area to rent in South Africa, with an average rent for a 2-bedroom flat of R32 000.
Cape Town’s City Centre comes in second with R21 000 for a comparable property, while Hout Bay rounds out the podium with R20 000.
Heatherlands in George ranks fourth, with an average rent of R16 000 per month.
Except for Bendor in Polokwane, where the average rent for an upmarket 2-bedroom flat is R10 500, the rest of the most expensive areas are all in Cape Town.
Sandton South to Central is the most expensive area in Johannesburg, with an average rent of R9 000, while Amanzimtoti/Warner Beach is the most expensive area in Durban, with an average rent of R8 500.
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The full report can be read here.
Also read:
The difference between R100 000 rental properties in Cape Town and Joburg
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