High demand for Pinelands rental properties

Demand has soared in recent months for rental properties in the well-established, attractive Cape Town suburb of Pinelands.

That’s the word from Karen Geyer, principal of the local Chas Everitt International franchise, who says there is not enough rental stock currently to meet the demand, which is coming mostly from people keen on the area who have decided to “try before they buy”, and from those hoping for an interest rate drop before they have to commit themselves to a purchase.

Consequently, two-bedroom apartments in the area are fetching as much as

R3700 a month and freehold homes are being rented for up to R12 000 a month.

Geyer says these average rentals are far more affordable than the mortgage repayments currently required on many bought properties, considering that the average price for an apartment in Pinelands is now around R700 000, and that for a freehold house around R1,7m – and taking into account that most buyers would also have to come up with a 10 or 20 percent deposit in cash.

“And in return for their rental the young couples and small families that favour renting in Pinelands are able to live in an area that boasts quality educational, shopping, sporting and recreational facilities, all close to home, and a peaceful ambience despite its proximity to the N2 and Cape Town CBD.

“The only problem for tenants is that rental properties are a bit thin on the ground now. However there is good news for landlords – which is that land for new developments is also a rare commodity in Pinelands so rentals are likely to keep rising steadily.”

The lack of development space will also underpin property sale prices, she says, “and since Pinelands is eminently suitable for family living it should be one of the first areas to show a substantial price improvement when the market turns.”

Article by: www.chaseveritt.com