The rental demand in many KZN areas is robust - Seeff
DURBAN - Despite some challenges, the rental demand in many areas of KZN is robust according to South African real estate company Seeff.
This is due to a combination of factors including the fact that many people can’t afford to buy property, new employment opportunities that have arisen, industries relocating to the KZN, the launch of major projects and semigration to the North Coast amongst others.
Ballito’s permanent population has more than doubled in just over a decade and this has created a big rental demand in this coastal town.
Mark Johnson said that even though the rental market is buoyant, stock is a major issue - especially with regard to property in gated communities priced from R8 000 to R18 000 per month.
"While we expect more stock to come onto the market in the medium term, rental demand is predicted to increase even further as a result of the growth," said Johnson.
Families are semigrating to Ballito by the dozens - many of whom are still working elsewhere and need to commute to work weekly. Many of these families choose to rent before they decide where to settle – adding to the rental demand.
While Queensburgh is experiencing rental demand for especially two and three bedroom homes, apartments and duplexes in complexes priced between R5500 and R8000 per month, they have also witnessed a decline in rental demand due to affordability issues.
Michelle Vermeulen said that with Queensburgh’s shortage of rental property, many landlords are trying to maximise their potential rental income by letting multiple homes and granny flats on the same property.
"In general a rental gets snapped up right away when it is priced fairly and represents good value for money.
New residential development in the Queensburgh area will offer investment opportunities to buy-to-let investors and will alleviate the rental shortage.
Roger Hoaten said that while they expect rental demand to continue rising here, supply is expected to be constrained due to growing household debt.
He added, "Urban creep is keeping rental prices in Berea low and the lack of university accommodation is creating demand from students for affordable rentals".
Berea offers many rental property options ranging from large free standing and art deco homes to sectional title developments and affordable apartments.
The rental price start from around R4 000 up to R25 000 per month.
Joleen Giraudeau said that Umkomaas to Pennington, a thriving coastal stretch, hosts Scottburgh which is one of the most popular holiday destinations on the KwaZulu Natal South Coast.
She said, "Time on the market is very limited with regard to rental stock as demand far surpasses supply".
The area boasts a large array of listings in different price brackets, starting from R3500 per month to R30000 per month.
Rental demand for properties in holiday areas along the Hibiscus Coast is also in high demand.
Joleen Giraudeau said that the average price ranges for rentals in the area start at around R2500 per month for a one bedroom flat in Hibberdene to R18000 pm for a four bedroom house in Umtentweni.
Rentals in the large CBD areas are more affordable than the listings in the exclusive residential areas.
Due to the economic boost this town is predicted to receive when building of the KZN Automotive Supplier Park (ASP) in Illovo commences later in 2020, the rental market here is expected to become a hot spot.
Gavin Parkins said that over a five year period it is anticipated that thousands of families will relocate here from areas where automotive suppliers are currently situated. This huge influx will cause demand for rental units to skyrocket.
Parkins adds that investors should turn their focus to the residential suburbs closest to the expected ASP development.
Parkins concludes that there is a huge demand for modern, upmarket units for rental in Amanzimtoti.
The rental landscape in Richards Bay has grown substantially over the years due to the influx of people finding job opportunities as well as those moving out of townships and settling in the urbanised areas.
In addition to the appealing coastal living, millennials and first-time renters have found Richards Bay the perfect place to start their property journeys.
With this rental market landlords are also more open to negotiation, resulting in stable rental prices.
"We have also seen a great demand for sectional titles in the area and 75 percent of the properties that we rent out are this property type - security being the primary reason and pricing an additional benefit," said Elaine Chetty.
Rentals vary from R5000 to R40000 per month, depending on the tenants’ needs.
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