Letting manager at Knight Frank Gail Cawood, says an increase of rental supply has caused the prices to drop.
We are finding a huge drop in the price of rentals.— Gail Cawood, Letting manager at Knight Frank
Notably in the Southern Suburbs, Hout Bay and the Atlantic Seaboard.
She says there are a number of new developments popping up in places like Claremont and Observatory.
There's a lot of competition out there.— Gail Cawood, Letting manager at Knight Frank
She says it seems like young people who were forced to pay high rents are now sharing more or staying at home with parents for longer.
She says they can get out of leases because of the CPA. though there is a penalty.
She says a year ago they had people walking in asking to find places to rent but now they have landlords walking in asking for help in finding tenants.
Some landlords are sticking to their guns and holding out but she says then three months down the line they have no tenant instead of settling for a cheaper rent.
She says a southern suburbs 2 bedroomed flat that a year ago was R15 000 would now go for about R12 000 a month. Bigger townhouses have dropped from about R32 000 to around R25 000
Landlords have to be more realistic.— Gail Cawood, Letting manager at Knight Frank
Listen to Cawood's explanation about why rents have dropped:
This article first appeared on CapeTalk : Cape Town rents drop by whopping 30% says estate agent