Cost of Cape Town's rental property ‘coming under pressure’

Agents and landlords did not foresee the drop in demand for property in the first-quarter of 2019. This is according to the FNB Estate Agents Survey results.

Certified residential and letting specialist Grant Rey offers some perspective into property letting and some of the challenges faced by landlords.

He says landlords are experiencing some pressure from tenants, with others threatening to move out if rent is not reduced.

Rey highlighted some factors.

Read: Thinking of renting out a property? First listen to this expert advice

We experienced phenomenal growth post-2014 in the property market.

Grant Rey, Certified residential and letting specialist - Re/Max

There were a lot of people moving to Cape Town. The demand was there but the supply was low. We had people queuing outside properties and now we're taking tenants one by one.

Grant Rey, Certified residential and letting specialist - Re/Max

Rey describes another factor as "the Airbnb bubble", where people were taking up properties and putting them on the Airbnb App. But now it seems the market is saturated.

He says it is becoming difficult to let property with or without an agent.

I see a lot of landlords putting their property on social media hoping to get the right tenant within their circles or get connected.

Grant Rey, Certified residential and letting specialist - Re/Max

As a tenant if you don't want to sit vacant you have to win the price war. A tenant goes on social media platform and look at the property portal, puts in search criteria in the order of lowest to highest and if you are not in the lowest five percent, you're simply going to sit empty.

Grant Rey, Certified residential and letting specialist - Re/Max

According to Rey, owners who recently bought properties will be under pressure the most, particularly those in new developments. This is because they won't be able to reduce the prices for tenants, with the hope to make profit.

To hear the rest of the conversation, listen below:


This article first appeared on CapeTalk : Cost of Cape Town's rental property ‘coming under pressure’


Recommended

by NEWSROOM AI
Read More
Renting vs buying: Is it better to wait before buying your own home?

Renting vs buying: Is it better to wait before buying your own home?

Payprop's Johette Smuts and Africa Melane debate the pros and cons of renting, buying to rent out and buying your own home.

Businessman at loggerheads with City of Joburg over land expropriation

Businessman at loggerheads with City of Joburg over land expropriation

Holilal Ajodha says the City wants to expropriate his land without compensation although it promised to adhere to a ruling.

#GoodNewsThursday: City of Joburg launches housing facility for the homeless

#GoodNewsThursday: City of Joburg launches housing facility for the homeless

The Fraser House transitional housing project came about because of a court order.

'R23 million for rent a month seems huge. I don't think we could've done better'

'R23 million for rent a month seems huge. I don't think we could've done better'

The Money Show’s Bruce Whitfield interviews Adrian Gore, founder and Group Chief Executive Officer at Discovery Limited.

Cape Town salaries finally trump Joburg with bigger and better packages - survey

Cape Town salaries finally trump Joburg with bigger and better packages - survey

Jesse Green, Adzuna's country manager explains why the Western Cape has overtaken Gauteng in offering a higher average salary.

Popular articles
[WATCH] Maimane resigns as DA leader, Trollip follows

[WATCH] Maimane resigns as DA leader, Trollip follows

DA leader Mmusi Maimane has thrown in the towel. He announced his resignation at a media briefing on Wednesday afternoon.

My artwork is far from satanic, says Grantleigh pupil

My artwork is far from satanic, says Grantleigh pupil

The matric pupil at Grantleigh School, whose artwork is at the centre of religious debate online, has issued a formal statement.

Checkers is steadily moving upmarket. And it’s working

Checkers is steadily moving upmarket. And it’s working

Checkers is getting "better and better", says branding and advertising expert Andy Rice.

[WATCH] A driver smiles and waves at a driver with road rage

[WATCH] A driver smiles and waves at a driver with road rage

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] SA rugby youngsters doing their own haka goes viral

[WATCH] SA rugby youngsters doing their own haka goes viral

Khabazela shares tweets and Facebook posts that have gone viral.

'I want to ensure my money delivers change to as many people as possible'

'I want to ensure my money delivers change to as many people as possible'

Black Business Council president Sandile Zungu on his attitude toward money (hopes and fears, successes and failures, etc.).

[WATCH] Oprah roasts student about his cracked phone, then buys him a new one

[WATCH] Oprah roasts student about his cracked phone, then buys him a new one

Khabazela shares tweets and Facebook posts that have gone viral.