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
[2018] Jesse Clegg (son of Johnny) opens ups about money and growing up on tour

[2018] Jesse Clegg (son of Johnny) opens ups about money and growing up on tour

[From the archives] Jesse Clegg talks about his famous father and attitude to money (hopes and fears, successes and failures...).

Johnny Clegg was a gift from God - Sipho Mchunu

Johnny Clegg was a gift from God - Sipho Mchunu

Juluka co-founder pays tribute to the music legend, along with Yvonne Chaka Chaka and veteran broadcaster Bhodloza Nzimande.

Zondo Commission: 'Zuma under increasing pressure'

Zondo Commission: 'Zuma under increasing pressure'

News24 assistant news editor Pieter du Toit says the former president lost the initiative on Day 2 of his testimony.

[WATCH] Mzansi's Ndlovu Youth Choir headed for AGT's live shows!

[WATCH] Mzansi's Ndlovu Youth Choir headed for AGT's live shows!

The choir that is stealing America's hearts is headed to the next round of America's Got Talent.

Investigators find serious corruption at EOH

Investigators find serious corruption at EOH

A probe found "suspicious transactions" worth R1.2bn, bribery and theft. Bruce Whitfield interviews EOH CEO Stephen Van Coller.

3 best JSE and offshore shares to buy, right now (by Anchor Capital)

3 best JSE and offshore shares to buy, right now (by Anchor Capital)

The Money Show’s Bruce Whitfield asks Henry Biddlecombe (an analyst at Anchor Capital) for his stock picks of the week.

'I should have told the Sunday Times the pot smoking was irrelevant'

'I should have told the Sunday Times the pot smoking was irrelevant'

Investigative journalist Jacques Pauw says he's sorry for any harm caused in his article on Mkhwebane and her principal witness.

[WATCH] Over 50 artists record special version of Johnny Clegg’s  “The Crossing”

[WATCH] Over 50 artists record special version of Johnny Clegg’s “The Crossing”

For this week's #GoodNewsThursdays, we find out the inspiration behind the production.