According to the latest TPN Credit Bureau's Residential Rental Monitor, the rental market is booming, especially in high demand areas such as Gauteng which boasts the highest percentage of households renting.
According to the data, 37.8% of Gauteng households live in rented accommodation. Most notably the rental market improved to such an extent that the percentage of vacant rental properties reduced from 8.14% at the end of last year to 4.3% as at the first quarter of this year.
This is reflective of the strong demand for rental property in the province, according to the Seeff Property Group. Interestingly, the TPN data also shows that the highest rental price band of R12,000 to R25,000 per month, experienced a notable increase in demand.
Seeff says while the high interest rate has been a tremendous boost for the rental market with many potential buyers opting to rent until the interest rate comes down again, it is not the only reason why people choose to rent.
In some instances people might buy in one area and then rent in another area. This might be where they want to live in a slightly more expensive area, but don't want to lose out on the benefits of home ownership.
Other reasons for renting might include work contracts where people move to a particular area for a fixed period of time. Sellers who are in between buying their next home might also prefer to first rent for a while, especially if they are considering a new area, to test whether they in fact enjoy living there.
One area with a hugely popular rental market is Pretoria East, according to PG van der Linde, rentals manager for Seeff Pretoria East. Pretoria is the country's administrative capital and is colloquially known as the "Jacaranda City" for the springtime explosion of purple as the Jacaranda trees across the city come into bloom.
Set amongst the foothills of the Magaliesberg mountains, Pretoria is the main seat of government being the landmark Union Buildings. It is also a very green city with many tree-lined neighbourhoods, and is home to high demand estates, especially those located in the Pretoria East area, says Van der Linde.
Pretoria East is home to some of the best schools in the city as well as the University of Pretoria, and many embassies and consulates. Times Square and the Menlyn Shopping Centre are also located in Pretoria East.
He says rental properties are in very high demand and have been for the past year. The expectation is that only once the interest rate starts coming down, is it likely to slow down slightly, but nothing too severe. Seeff expects a stable rental market with good year on year growth.
Security estates are not only a popular choice for upper income tenants in the area, but also achieve the highest average rentals. The highest rentals achieved by Seeff Pretoria East over the last year include homes rented out at R50,000, R55,000 and R79,300 per month in the Woodhill Golf Estate.
In the Woodhill Estate, you can find a three-bedroomed townhouse for R24,000 per month while luxury houses range upwards of R33,000 to around R60,000 per month and more depending on the property.
A most striking feature is the magnificent views over the city. The modern home features double-volume living areas, and is superbly finished and furnished with an open-plan layout which flows throughout the home. Features include a cinema room.
There are four bedrooms, including the stunning double-volume main bedroom suite with fabulous views. There is also a spacious patio with lovely views of the fairways, and features such as a built-in gas braai, bar area, and wooden deck with a heated jacuzzi, as well as a sparkling pool. The garden is landscaped.
Woodhill Estate offers the ultimate lifestyle, all in a secure estate with top class amenities. These include a Country Club, driving range, Pro-shop, golf course, wellness centre, fine dining restaurant, conferencing, boardrooms and banqueting facilities, as well as sporting facilities including tennis, squash and padel courts
For more information, visit the Seeff website.