The luxury rental market continues its strong recovery, say letting agents Seeff Property Group.
Areas such as Cape Town’s Atlantic Coast, Constance Upper, Bishopscourt, Sandton, Paarl, Franschhoek and luxury estates in particular are once again achieving monthly rents of over R100,000 per month.
According to Jessica Marais, Seeff Atlantic Seaboard’s residential rental manager, rents have also increased significantly in high-demand price ranges on the Atlantic Coast.
With the economy opening up and demand for international travel recovering, Seef expects a strong summer and tourist season. We have already achieved significant rents over the past year, said Samuel Seeff, Chairman of Seeff Property Group.
These include a R130,000-a-month in Upper Constance on a three-year lease that was paid up front by an Irish tenant, and two expensive rentals in Camps Bay at R100,000 and R95,000 a month respectively. In Sandton/Johannesburg North, Seeff has also secured a substantial R92,700 per month penthouse at the Park Central development in Rosebank.
Shortage of inventory and premium rental rates
According to Jessica Marais, this year has seen an extraordinary uptick in demand for high-end rental properties in high-end suburbs such as Camps Bay, Fresno and Tamburskloof in the City Bowl.
There is demand from local and foreign tenants. Seeff has concluded a number of high-end leases with foreign tenants. These include 100,000 rand per month in Camps Bay for a family from Sweden, 80,000 rand per month in Fresno for a family from Switzerland and 70,000 rand per month in Camps Bay for an American corporate tenant.
Looking ahead to the summer high season, she notes that inventory will be depleted fairly quickly because quality properties are being leased fairly quickly. Due to the high demand for renting luxury premises, rental prices have increased by 15-20% compared to last year.
Rental of Constantia Upper and Bishopscourt records
Jacqui Bush, letting agent for Seeff Constantia, said there is now strong demand from international tenants. As well as achieving a record rent of 130,000 rand per month in Constantia Upper, she works with a variety of clients from the US and UK.
They are looking for prime properties in Constanta Verkhnia, often come to South Africa for work or business and demand quality rentals. While there is generally sufficient inventory at the high end of the market, she said amid high demand, there is a shortage of mid-level inventory in the range of R20,000 to R30,000 per month.
Sandton/Johannesburg North is attracting more tenants from other African countries
According to Rochelle Holland, Seeff Sandton’s residential rental manager, the greater Sandton and northern Johannesburg areas are prime luxury rental markets, driven by both local and international demand (including from other African countries).
She also noted that there has been a huge increase in demand in the Sandton and Joburg North area this year, particularly for golf estates in the Fourways area and in the suburbs, close to Sandton’s central business district.
These include Morningside in the R25,000 to R35,000 per month range, and Hyde Park and Sandhurst generally in the R70,000 per month range.
While most of the high-end leases are with local tenants, she said there is a rise in demand from international tenants as well as from other African countries. Many move to Joburg for work and mainly look to the inner suburbs of Sandton.
A number of corporate relocation agencies have also approached Seeff agents in the Sandton and Fourways areas, particularly looking for properties in conservation estates with rents between R30,000 and R65,000 per month.
Pretoria East is a hotspot for luxury rental properties
P.G. van der Linde, residential rental manager at Seeff Pretoria East, said there was strong demand for high-end rental properties in the area, particularly in protected estates. The market is driven by demand from elite tenants, including government officials and employees of foreign embassies.
Rents for luxury homes range from 30,000 Rand to 70,000 and 80,000 Rand per month, with security and lifestyle being top priorities for tenants. At Woodhill Golf Estate, for example, rents of R64,000 per month have been achieved.
Winelands property attracts foreign and expatriate tenants
In addition to rental housing, Moira Atkinson, a rental agent with Zeef Franschhoek, said demand from overseas visitors as well as people who have emigrated to the Cape has increased.
The Cape Peninsula, as well as the surrounding coastal and wine regions, are expected to be in high demand during the upcoming summer and holiday season. This, said Atkinson, will naturally further increase the demand for rentals.
Seef also notes that the renewed emigration trend to the Cape is adding further impetus to the rental market, with people moving here often looking to rent before they buy.
The North Coast of KwaZulu Natal is attracting local and international tenants
Apart from local renters, especially from the country, the North Coast area of KZN is also popular with foreign renters. Semi-migration is also a big factor in the demand for rental housing in the area.
Brett Botsis, licensee of Seeff Umhlanga, said the rental market continued to perform well as the area was now a hot spot for wealthy buyers and renters.
Rates for high-end properties range from about 35,000 Rand per month to 60,000 Rand in Hawaan Forest Estate and 100,000 Rand per month for a luxury home in Umhlanga Rocks.
The market capitalization of estates in the Zimbali/Balita area such as Zimbali currently ranges from approximately R45,000 to R55,000 per month.
Real estate rental:
Camps Bay – 80,000 Rand per month for this 4 bed villa overlooking the Atlantic Ocean
Constantia Upper – R130,000 per month for this stunning estate with a 5 bed main residence plus two cottages and three staff rooms.
Sandhurst – R195,000 per month for this spectacular Sandhurst estate
Pretoria East, Mooikloof Equestrian Estate – 65,000 rand per month for a 1400 sq m super luxury home on 1 hectare of land in this luxury estate
Franschhoek – R65 000/month for this luxury home in La Bella Vita Estate in Santé Winelands Estate where you can live among the vineyards