Rental stock starts to dry up
The demand for rental properties is intensifying countrywide as conditions for property purchasing become increasingly problematic and stock shortages are starting to appear.
Thats the broad consensus from various ERA offices around the country, says group CEO Gerhard Kotzé, who notes that while the inability to afford homes at current interest levels and difficulty in obtaining home loans are the biggest factors driving the rental market, there is also a growing number of property owners who are downsizing to smaller, rental accommodation while renting out their own larger homes and pocketing the difference.
Infrastructure developments such as those for Eskom and the minerals and precious metals boom as well as pockets of strong regional development are also creating demand for rental properties.
Helene Visser of ERA Steer Blaauwberg covering the Tableview area says her particular area has had a very active rental market with a reasonable supply of long-term stock and some attractive rental bargains.
But there is also strong demand for short term rentals and a shortage of furnished rental accommodation. Rentals at the lower end are around R3500pm and at the higher end around R6500pm.
In East London, ERA Sun Beacon Bays Penny Lindstrom says townhouses are in short supply and command a premium while in Brakpan, ERA Brakpans Monica van Tonder says there is only rental stock available because some new developments long in the pipeline are now coming on to the market.
At ERA Ermelo, where Retha de Beer has a huge rental portfolio, the mining sector and Eskoms expansion in the area are fuelling high demand for both townhouses and freehold homes.
Much of the demand is coming from senior management and technical people seconded to these projects, she says, and tw-bedroom townhouses are renting for around R3300pm.
In Tshwane, Lucille Kaplan of ERA Pretoria East reports a definite upturn in rental demand across the board, with prices ranging from R3800pm to a remarkable R25 000pm in some cases.
Article by: www.era.co.za