Cape Town rental properties are getting cheaper and this is why
CAPE TOWN – There is reportedly an oversupply of rental properties in Cape Town, according to residential sales and letting specialist at Remax Cape Town, Grant Rea.
Since October last year, realtors have seen a shift in the rental property market and faced vacant homes for the first time in years, reports Business Insider SA. Prior to this, there had always been demand for a rental property, said Rea.
However, the average gross yields for realtors have now decreased from 6% to 4.5%.
Rea reportedly attributes this to several new developments in the Cape Town City Bowl.
Meanwhile, household and property sector strategist at FNB Home Finance, John Loos said that Cape Town’s property market has shown signs of strain after it has outperformed the rest of SA for ten years.
Loos reportedly blamed a slowing migration from other parts of the country into the Western Cape. He said that due to steep property prices, the market’s performance was weak.
In other property news, the latest residential rental quarterly vacancy survey report by the TPN credit bureau revealed that vacancies increased to 5.9% from 5.4% in the last quarter.
Source: iol.co.za