Seeff reports a strong recovery in the luxury property rental market and comments on the upcoming tourist season
The luxury housing rental market is in recovery, and luxury property rentals in prime areas such as Constantia Upper and the Cape Town Atlantic Seaboard are achieving monthly rentals upwards of R100,000 (per month).
Looking ahead, Seeff is optimistic about a strong summer and tourist season, with international travel again in demand.
“Already, we have achieved significant rentals over the last year.” - Samuel Seeff, chairman of the Seeff Property Group.
The most notable luxury property rentals include:
- R130,000 per month for a luxury rental in Upper Constantia, on a three-year lease, which a tenant from Ireland paid upfront.
- Two luxury property rentals in Camps Bay achieved R100,000 and R95,000 per month, respectively.
- R92,700 monthly for a luxury penthouse in the Park Central development in Rosebank, Sandton/Johannesburg North.
Luxury Property Rentals in Demand on the Atlantic Seaboard
According to Jessica Marais, luxury property rentals are in great demand across suburbs such as Fresnaye, Camps Bay, and the City Bowl’s own Tamboerskloof.
“Rental rates have escalated notably in the high demand price brackets on the Atlantic Seaboard.” - Jessica Marais, rentals manager for Seeff Atlantic Seaboard.
Seeff reports that this demand for luxury rentals comes from both local and international tenants, with a significant number of luxury rentals going to international tenants.
- A R100,000 per month home in Camps Bay went to a family from Sweden.
- A R80,000 per month home in Fresnaye was snatched up by a family from Switzerland.
- A R70,000 per month home situated in Camps Bay was the dream home for an American corporate renter.
Luxury Property Hits Record Rental Rate in Constantia Upper
International tenants are driving demand for luxury property rentals in Constantia.
Jacqui Bush, a Property Practitioner for Seeff Constantia, achieved a record monthly rental rate of R130,000 for a Constantia Upper home.
While the high end of the market generally has adequate stock, Jacqui does report a shortage of mid-market supply in the R20,000 to R30,000 per month range.
Who Are The Tenants Seeking Luxury Rentals In Constantia Upper?
Most tenants come from the United Kingdom and the United States, usually for business reasons, and seek high-quality rentals that support their lifestyle.
Sandton and Johannesburg North Attract International Luxury Property Tenants
Rochelle Holland, Property Practitioner for Seeff Sandton, reports that the Sandton and Johannesburg North areas have become prime luxury rental markets.
Popular Luxury Estate Rentals
Golf estates in the Fourways area and suburbs close to the Sandton CBD are particularly popular.
These include:
- Morningside, falling into the R25,000 to R35,000 per month range.
- Hyde Park and Sandhurst generally remain in the R70,000-plus per month range.
Who Are the Tenants Seeking Luxury Rentals in Sandton And Johannesburg North?
- International tenants (including those from other African countries) drive demand. Most of these tenants are relocating for business reasons and show an interest in Sandton’s inner suburbs.
- Corporate relocation agencies have also approached Seeff’s Property Practitioners for rentals in the Sandton and Fourways areas. Their specific interest is in properties within security estates - in the R30,000 to R65,000 per month rental price range.
Pretoria East Becomes a Hotspot for Luxury Estate Tenants
According to PG van der Linde, the rentals manager for Seeff Pretoria East, Pretoria East has seen a high demand for luxury property rentals, particularly those within security estates.
Tenants’ priorities are security and lifestyle, and they are going for luxury properties in the R30,000 to between R70,000 and R80,000 per month price range.
- The Woodhill Golf Estate achieved a monthly rental of R64,000.
Who Are the Tenants Seeking Luxury Rentals in Pretoria East?
The demand comes from high-end tenants, including international embassy staff and government officials.
Windlands Property Sees Interest From International and Semigration Tenants
Moira Atkinson, a Property Practitioner with Seeff Franschhoek, reports increased demand from international tenants and individuals semigrating to the Western Cape.
Kwazulu Natal North Coast Draws Luxury Property Tenants From Around the World
The KwaZulu Natal, North Coast area, is popular with international and local tenants alike, with semigration also responsible for this area's luxury property rental demand.
“The rental market continues to perform well, as the area is now a hotspot for high-net-worth buyers and tenants.” - Brett Botsis, licensee for Seeff Umhlanga.
What Are the Luxury Property Rental Rates in KwaZulu Natal North?
Luxury property rental rates range from around R35,000 per month to as much as R60,000 - as in Hawaan Forest Estate - and R100,000 per month (for a luxury home in Umhlanga Rocks).
In the Zimbali/Ballito area, market stock in estates such as Zimbali currently ranges from around R45,000 to R55,000 per month.
Luxury Property Rental Forecast for the Tourist Season
Seeff foresees that the Cape Peninsula and the surrounding coastal and Winelands areas will be in hot demand over the holiday season.
“This will naturally boost the demand for rentals.” - Moira Atkinson, Property Practitioner for Seeff Franschhoek.
Seeff also reports that the trend of semigration to the Western Cape adds further impetus to the rental market, as the people who are relocating here show an interest in renting before they buy.
Luxury Property Stock Levels for the Tourist Season
Jessica Marais, rentals manager for Seeff Atlantic Seaboard, observes that stock levels are currently low due to the rapid rate at which people are renting quality properties.
Are you considering a luxury rental property but can’t decide if it’s a wise move? Reach out to Seeff for guidance, and we’ll help you start your story in finding the property of your dreams. If you enjoyed this article, you might consider reading our article on property in the Southern Suburbs Uppers reaching unprecedented heights.
Related Articles
