Knock-out property rentals

R60 000-a-month: the Cape home-owner 2010 target

Some Cape landlords are hoping to transform an R8 000/month rent into a R60 000 windfall during the 2010 soccer tournament. Residential owners in Mouille Point, Green Point, Sea Point, De Waterkant and the city foreshore and harbour areas are apparently planning to charge possibly five times the going rate, writes Lanice Steward, MD of Anne Porter Knight Frank.

Opinions already vary widely as to whether the R3bn Green Point Stadium is an asset to the area or an oversized imposition on a precinct that has otherwise gained rapidly in charm and appeal recently. It is a magnificent technological achievement but, even though it is separated from the main residential and retail areas, it has to be admitted that it is in danger of dominating a suburb where most of the buildings are between two and six storeys high.

To my surprise, reaction among Green Point residents has on the whole been positive, and one reason for this is that many are now making arrangements to rent out their homes throughout the World Cup period at once-in-a-lifetime rentals.

The latest reports indicate that apartments within walking distance will be able to charge exceptionally high rates, possibly five times the current going rate. We have been told that some people are hoping to earn R60 000 per month for apartments that are currently charging R8 000. Whether such rentals are achievable I have no means of knowing at this stage, but there is an amazing optimism among Green Point residents right now and it may well be justified.

One effect of the anticipated 2010 boom is that right now there is minimal stock coming onto the market, and this in turn is pushing up the prices of all houses in the area.

We have to recognise that large sections of Green Point, particularly those on the coastline approaching the V&A Waterfront and those sited towards the northern end of the precinct have taken on a chic "boulevard" ambience of the type that previously boosted prices so significantly in Camps Bay and De Waterkant. Whenever an area begins to attract the young, upwardly mobile set, as Green Point is now doing, you can expect steady transformation and rapid price rises. The process was initiated here by the Victoria Junction Hotel and other new developments on Somerset Road and is now in full swing, making this a promising area in which to buy and one likely to appreciate faster than others in the Cape Peninsula.

Article by: Lanice Steward - www.realestateweb.co.za