According to a recent report from Rode Property Consultants, flat vacancies have declined notably across the country. The high interest rate has driven many potential buyers to the rental market, and this has been good news for landlords and potential rental investors.
Vacancies have declined notably over the last year. Nationally, it dropped from 8.1% in the last quarter of 2023 to 7.9% in the first quarter of this year, according to the report. This is a significant improvement over the 10%-plus vacancy rate of the Covid period.
Coastal properties are generally performing particularly well. The Western Cape has the lowest vacancy rate at just 2.3%. The average for the Cape Town Metro is around 2.5% for the first quarter of this year.
The report cites semigration as an additional factor which is boosting higher demand for rental properties. Flat vacancies averaged only 2.5% in the Cape Town Metro during the first quarter of this year. It was 0% in George and Stellenbosch, according to the report.
Comparatively, Gauteng vacancies rose to 9.3% and KZN vacancies to 11.2%. According to a 2021 Lightstone Report, most people were semigrating to the Western Cape, and many were migrating to coastal suburbs such as Strand.
The rental market has boomed in areas such as the Strand. Alten Vermaak, licensee for Seeff Strand who also recently acquired the Gordons Bay license, says his team's successes were awarded with no less than 28 awards at this year's Seeff Agent Awards held in March, and no wonder.
In 2023, Seeff Strand improved its turnover by a whopping 62% compared to the prior year and sold 130 properties worth about R250 million, achieving a 20% share of all sales in the town.
Quintus Gerber, an agent with Seeff Strand, says 2023 was a great year for rentals too. Due to the high interest rate, there was a massive increase in demand for rentals, with prices consequently rising due to a shortage of rental properties.
This year (2024), Seeff has seen a similar trend continue. Seeff expects the rental market to remain buoyant for as long as the interest rate remains at the current high level.
The top three monthly rentals achieved by Seeff over the last year include R35,000 for a unit in "97 On Strand" in Beach Road, R27,500 for a property in the Greenways Golf Estate, and R20,000 for a unit in "Topaz," also on Beach Road.
The highest demand for rental properties in Strand is generally in the price band between R10,000 and R15,000 per month. The highest demand in Gordon's Bay is generally in the price band between R7,000 and R10,000 per month.
Strand and Gordons Bay are popular areas to live in, but also for retirees. The areas are also popular tourist destinations for leisure and holidays. The towns are fronted by one of the most scenic drives in the world, and with picturesque views of the ocean and the Hottentots-Holland mountains as a backdrop, everyday life feels like a perpetual vacation.
Strand offers beautiful beaches perfect for leisurely strolls or sunset picnics, while Gordon's Bay offers a quieter, more serene atmosphere, ideal for those seeking refuge from the hustle and bustle of city life.
Both communities offer a range of amenities, including plenty of restaurants and hangouts, basic services, shops, boutiques, and excellent schools. You also have easy access to Cape Town with the V&A Waterfront only a 40-minute drive, along with access to the Winelands, Hermanus, and other Overberg towns.
A key advantage is that both Strand and Gordons Bay are still very accessibly priced. That said, there are also plenty of options for luxury buyers. In Strand, for example, there are luxury apartment complexes which line the beachfront, as well as the Greenways Golf Estate, which offers excellent value for buyers and investors.
Aside from access to the white, sandy, Blue-Flag Bikini Beach in Gordons Bay, luxury buyers can find stunning homes in areas such as Harbour Island, a beautiful waterfront development, along with a choice of luxury villas which line the mountainside and offer fabulous views.
You can contact Seeff Strand and Gordons Bay on 021 854 5777 or pop into their office in the Metropole Plaza at number 98 Beach Road in Strand.