Record-breaking R450k rental achieved in Cape Town's Constantia
Category Property News
Two astonishing rentals were recently achieved in Cape Town - one of R220 000 per month for a house in Bantry Bay on the Atlantic Seaboard and another of R450 000 for an estate in Constantia. These rentals confirm the latest PayProp rental index findings, that the Western Cape is now the most expensive province in South Africa to rent a house.
DG Properties, who were responsible for these rentals, explain that on the Atlantic Seaboard average monthly rentals range anywhere between R20 000 to R45 000 for apartments, while the average family home achieves rentals from R50 000 to R80 000 per month. However, rentals exceeding R150 000 are not uncommon. This figure has now been topped by this latest rental of R220 000.
In Cape Town's increasingly popular Southern Suburbs, monthly rentals in areas such as Bishopscourt, Newlands and Constantia are in the region of R100 000 or more for some luxury homes. "We have not yet had a rental rivalling this latest amount of R450 000 for this area - or in fact any other area in Cape Town and this is indeed a record for us if not a record in South Africa," says DG.
According to DG, these high-end rentals are driven somewhat through the weaker rand affording good value to foreigners and expats looking to stay in Cape Town. "The influx of ultra-wealthy business people and families from provinces such as Gauteng has also aided the Cape rental market as these ex-Gauteng residents often rent before buying." DG Properties goes on to advise that the current recessionary conditions have also fuelled the rental market for these luxury homes.
"Whilst a rental figure of R220 000 may seem extravagant it is only half of what a bond would be on a R44 million rand property, for example, and tenants don't then incur the additional costs of monthly rates and taxes, maintenance, etc. DG says as we weather South Africa's political upheavals and economic uncertainty, many ultra-wealthy would-be buyers are opting to rather rent in the interim until the uncertainty levels out.
"Short-term rentals are also doing well in Cape Town and we have been contacted by several internationally acclaimed celebrities, as well as ultra-high net worth individuals from Europe and the USA, to secure them suitable rentals for the upcoming season," says DG Properties.
Author: Property 24