Why a rental home in Durbanville is still a great idea
The demand for rental properties in the northern suburbs is still steadily strong; however, tenants want to stretch their budget to achieve the best value for their money. Even though the demand for rental property continues to outweigh the supply, renters are becoming more informed and knowledgeable about the market and will be looking for the best price. It is therefore very important to advertise realistic and competitive rental prices.
Recently articles have been circulating pertaining to the alleged tumble of the rental market in the Western Cape. A few years ago, the upmarket southern suburbs rental market of Cape Town was booming, and warning signs became apparent when rental rates became unrealistic. During last year we saw a drop-in demand and the southern suburbs rental market has remained quiet since. However, it's no surprise that the vacancy rate for the Western Cape remains the lowest at 3.6% in 2018 Q1 in comparison to the other provinces. When looking at the market strength index, the Western Cape still comes out tops at 71%.
Currently the sales and rental market is very similar – buyers and tenants are equally price sensitive and doing their homework to find the best value for their money. Therefore, when setting a price to your rental property is becomes critically important to consult your area specialist to ensure that your rental rates are competitive and relevant to the market.
Author: Andre Kritzinger