Rental demand up sharply in Joburg’s northern areas

Demand for rental units in Johannesburg’s northern and north-western suburbs has increased exponentially since the beginning of the year.

Chas Everitt International’s rental manager for the area, Shirley Tolstrup, says the number of units rented in the first half of this year is 50% up on the figure for the whole of last year - and demand last year was double that in 2006.

“In 2006 our rental operation was relatively limited and last year we had to expand to cope with demand. Our rental business for Randburg and the surrounding areas is now bigger than ever and still growing. We are therefore planning further expansion.”

She says tenants are looking for properties in all rental brackets but that properties in the R6000 to R12 000 a month category are most popular. “There are some properties on offer in the lower price ranges, while there is also demand from corporate clients in price brackets of up to R40 000 a month in areas such as Bryanston.

“Units in the Eagle Canyon golf estate in Randpark Ridge, for example, are popular even at monthly rentals of between R15 000 and R25 000.”

Tolstrup adds that most tenants are new arrivals in Johannesburg, many of them due to job transfers. “And high interest rates and the effects of the National Credit Act make it easier – and cheaper – for them to rent rather than to buy right now.

“In fact, rentals are now quite attractive. They are still quite a lot lower than the benchmark of 10 percent of market value that investors in the rental market strive to achieve.

“There is also a good supply of stock in the market due to homeowners who are relocating to other parts of the country or overseas and opt to rent out their properties when they cannot sell quickly,” Tolstrup says.

Article from: www.chaseveritt.com