The luxury housing rental market continues its strong recovery according to the Seeff Property Group’s rental agents. Areas such as the Cape Town Atlantic Seaboard, Constantia Upper, Bishopscourt, Sandton, Paarl, Franschhoek, and luxury estates, in particular, are once again achieving monthly rentals of over R100,000 per month.
Rental rates have also escalated notably in the high-demand price brackets on the Atlantic Seaboard according to Jessica Marais, rentals manager for Seeff Atlantic Seaboard.
With the economies opening up and international travel once again back in demand, Seeff expects a strong summer and tourist season. Already, we have achieved significant rentals over the last year, says Samuel Seeff, chairman of the Seeff Property Group.
These include R130,000 per month in Upper Constantia on a three-year lease which was paid upfront by a tenant from Ireland and two high-value rentals in Camps Bay of R100,000 and R95,000 per month, respectively. In Sandton/Johannesburg North, Seeff also secured a significant R92,700 per month for a penthouse in the Park Central development in Rosebank.
According to Jessica Marais, there has been a tremendous uptick in luxury rental demand this year across the high-end suburbs such as Camps Bay, Fresnaye, and Tamboerskloof in the City Bowl.
Demand is coming from local and foreign tenants. Seeff has concluded a number of high-end rentals to foreign tenants. These include R100,000 per month in Camps Bay to a family from Sweden, R80,000 per month in Fresnaye to a family from Switzerland, and R70,000 per month in Camps Bay to an American corporate tenant.
Looking ahead to the approaching summer high-season period, she notes that stock levels are quite depleted with quality properties renting out quite quickly. Due to the high demand for luxury rentals, rental prices are up by between 15 to 20 percent from last year.
Jacqui Bush, rentals agent for Seeff Constantia confirms there is now strong demand from international tenants. Aside from achieving a record rental of R130,000 per month in Constantia Upper, she is working with various clients from the US and UK.
They are looking for premier properties in Constantia Upper, often coming to South Africa for work or business, and demand high-quality rentals. While there is generally adequate stock at the high end of the market, she says there is a shortage of mid-market supply in the R20,000 to R30,000 per month range on the back of high demand.
The greater Sandton and Johannesburg North areas are prime rental markets for luxury rentals driven by local demand as well as international (including from other African countries), according to Rochelle Holland, rentals manager for Seeff Sandton.
She also notes that there has been a huge increase in demand across the Sandton and Joburg North area this year, especially in golf estates in the Fourways area and in suburbs close to the Sandton CBD. These include Morningside in the R25,000 to R35,000 per month range and Hyde Park and Sandhurst, generally in the R70,000-plus per month range.
While the majority of high-end leases are concluded with local tenants, she says there has been an uptick in demand from international tenants as well as from other African countries. Many are relocating to Joburg for work purposes and mainly look at the inner Sandton suburbs.
Numerous corporate relocation agencies have also reached out to Seeff’s agents in the Sandton and Fourways areas, specifically looking for properties within security estates, in the R30,000 to R65,000 per month rental price bracket.
PG van der Linde, rentals manager for Seeff Pretoria East says the area is in high demand for luxury rentals, especially in the security estates. The market is driven by demand from high-end tenants including government officials and foreign embassy staff.
Luxury homes rent for upwards of around R30,000 to between R70,000 and R80,000 per month with security and lifestyle the main priority for tenants. In Woodhill Golf Estate, for example, a rental of R64,000 per month was achieved.
Aside from residential rentals, Moira Atkinson, a rental agent with Seeff Franschhoek says there has been increased demand from foreign visitors as well as people semigrating to the Cape.
It is expected that both the Cape Peninsula as well as the surrounding coastal and Winelands areas will be in hot demand over the approaching summer and holiday season. This, says Ms. Atkinson, will naturally further boost the demand for rentals.
Seeff is also observing that the renewed trend of semigration to the Cape is adding further impetus to the rental market with people moving here often looking to rent before they buy.
Aside from local tenants, especially from upcountry, the KZN North Coast area is also popular with international tenants. Semigration is also a big driver of demand for rentals in the area.
Brett Botsis, licensee for Seeff Umhlanga says the rental market continues to perform well as the area is now a hotspot for high-net-worth buyers and tenants. Rates for high-end properties range from around R35,000 per month to as much as R60,000 in Hawaan Forest Estate and R100,000 per month for a luxury house in Umhlanga Rocks. Market stock in estates in the Zimbali/Ballito area such as Zimbali currently ranges from around R45,000 to R55,000 per month.