AnalysisResidential News

Gauteng rental market grows, but still the most affordable metro

Gauteng is home to the largest rental market in the country and according to TPN the rental market now stands at about 48% of all households.

While it is the largest rental market by far and the economic powerhouse, it is still cheaper to rent a home here compared to the Cape and about the same as the Durban area according to the Seeff Property Group.

The average rental for Gauteng is now around R8,379 compared to the Western Cape at R9,399 and KZN at R8,381 based on PayProp data.

The Seeff Group says that while year-on-year rental growth appears to be back in positive territory. While rental rates generally remain under pressure in Gauteng, top end tenants have paid up to R55,000 per month for a house in Dainfern Valley Estate and R92,700 per month for a luxury penthouse in Park Central in Rosebank; both leases concluded by Seeff Sandton.

Some highlights of the state of the Gauteng rental market include:

Pretoria East now a high-demand rental area for its apartments, townhouses and estates

According to PG van der Linde, rentals manager for Seeff Pretoria East, the area includes a choice of suburbs which cater to various price points, from affordable apartments to luxury estates and suburbs which attract business and government executives as well as ambassadorial staff.

For students and young professionals, areas such as Lynnwood and Menlo Park are popular due to the close proximity to schools and University of Pretoria. The area is cosmopolitan with restaurants and eateries and there are many new upmarket developments. Rates start at around R13,000 for sectional title and upwards of R30,000 for full title in the estates and boomed off areas.

Equestria offers great affordability with sectional title units renting out at between R7,000 to R9,000 per month on average.

Woodhill Golf Estate and other estates average at around R30,000 to R80,000 per month at the top-end. Lifestyle and security are important considerations for tenants. Top-end estates are in demand with embassies and businesses for their staff.

Centurion popular for its easy access to Pretoria, Midrand and Johannesburg

Tiaan Pretorius, manager for Seeff Centurion says the area has an active rental market and rents have remained stable.

Top attractions for the rental market include great schools and amenities and a high volume of security complexes and estates. Rates for apartments range from about R7,000 to R10,000 per month while houses in security estates rent for around R15,000 to R20,000 on average per month.

Sandton, Fourways and Midrand remain prime areas for access to the Sandton and Midrand CBDs

Rochelle Holland, rentals manager for Seeff Sandton says rental rates have remained fairly stable. While top-end rentals can range to about R195,000 per month for a spectacular high-end estate in Sandhurst, there are many affordable areas for young professionals and families alike.

The highest demand is in the R7,000 to R12,000 per month range. Apartments in areas such as Rosebank and Dunkeld West which offer modern living is priced at around R27,000 to R28,000 per month.

Affordability is a key charactertist of Midrand. Apartments start from just R6,000 and houses upwards of R8,000 although top-end homes can go to as much as R25,000 to R40,000 per month.

Randburg offers solid middle-class affordability close to Sandton and business nodes

John O’Reilly, rental expert for Seeff Randburg says Randburg is a vast area characterised by affordability combined with a great location with easy access to Sandton and many business nodes, top schools and amenities.

Rental rates remain affordable at around R6,200 to R11,500 on average with family houses ranging to about R16,000 to R18,000 per month.

In great family areas such as Ferndale which borders the Sandton area, you can find apartments from R5,500 to R11,200 per month. Randpark Ridge also offers great value with apartments from around R6,000 to R11,000 and houses from R15,000 to R16,000 per month.

Johannesburg South offers some of the most affordable rentals

While the more affordable rental market experienced significant challenges, Claire Store from Seeff Southcrest says areas such as Southcrest, Verwoerdpark and Alberton are doing well as they offer some of the best value.

These areas are safe and well-maintained and offer proximity to schools which is great for young families. Rates range from around R7,000 to R10,500 on average per month, but can go to R12,500-for a top property.