Western Cape rentals have taken a dramatic knock in the second quarter of the year, according to findings by the Tenant Profile Network (TPN).
The TPN Rental Market Strength Index in the province has shown a dramatic fall from 71% in Q1 to 56% in Q2 of 2018.
Michelle Dickens, Managing Director at TPN, says the index measures components such as vacancy rate, escalation rate and the average rental price.
Dickens says the excessive rental prices in the Cape over the past two years have led to a severe shift.
She explains that the vacancy rate in the Western Cape nearly doubled from just below 4% in Q1 to 7.5% in Q2.
Dickens adds that the sentiment towards short-term rentals and Airbnb has also had an impact on the market.
People are not moving. They are staying where they are because it's too expensive to find new accommodation.— Michelle Dickens, Managing Director at Tenant Profile Network
Vacancies that are on the market are just overpriced... It's too expensive for locals to rent.— Michelle Dickens, Managing Director at Tenant Profile Network
The Western Cape average house price for rental is R 8 500 whereas nationally it's R 6 500. In Gauteng it's R 7 300.— Michelle Dickens, Managing Director at Tenant Profile Network
Take a listen to her explain:
This article first appeared on CapeTalk : WC rental market has tumbled due to overpricing - TPN