Gregg and Michele Wilson, Seeff’s Licensees in the area, say these stock shortages can be ascribed to various factors.
“Tenants are attracted to the area primarily because of the value for money and the availability of a large range of excellent schooling. In addition retail industries like Toyota, Jaguar and Woolworths are flocking to the area creating many employment opportunities and the new Busamed Hillcrest private hospital also brought many new professionals to the area.
At the moment we have many hot spot developments near completion to service these multifaceted markets and investors and young professionals are snapping rental units priced between R7 500 to R15 000 per month up in no time at all.
We have also recently witnessed a trend of families renting out cottages or flats on their premises to supplement their income and the retirement sector retaining their homes as rental investments long after they have moved out of their homes”.
Wilson says that while they are not experiencing an overstock, luxury rentals priced between R20 000 to R40 000 per month in upmarket estates like Cotswold Downs, Kirtlington, Langford in the Hillcrest and Hillcrest Park areas is slower than the rest of the market and that people who live here are happy to pay a 10 – 20% premium for security compared to traditional suburbs.
“Our greatest rental demand is definitely for townhouses in security complexes priced between R8 000 to R15 000 per month, but this shortage will hopefully be alleviated by the anticipated stock that is to be released in the market soon”.
Wilson continues that while the tenant age demographic in the Upper Highway area used to be people aged between 40 years and 70 years, they are now recording an increased amount of people aged between 22 and 39 years entering the area.
“Upper highway used to be a large farming village that hasn’t lost its outdoor appeal, but has an added vibey feel to the village with a cool climate and many outdoor activities to satisfy an entire family’s recreational needs. Another major draw card is that the area is home to some of the best private schooling in the province including Kearsney, Highbury and St Mary’s amongst others.”
Wilson concludes that the small and medium developer in Upper Highway is back with a vengeance – demonstrating increased confidence in the area by unlocking its investment potential.
“The Seeff Hillcrest, Kloof and Waterfall office will be marketing a 20-unit freehold development of urban farm-styled townhouses close to the Curro schools towards the end of this year for example”.
Picture enclosed: This five bedroom double storey home is to let for R30 000 per month.
Author: Tanya van Buuren Botma, 23 July 2019, Rentals