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:
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.
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.
Most tenants come from the United Kingdom and the United States, usually for business reasons, and seek high-quality rentals that support their lifestyle.
Rochelle Holland, Property Practitioner for Seeff Sandton, reports that the Sandton and Johannesburg North areas have become prime luxury rental markets.
Golf estates in the Fourways area and suburbs close to the Sandton CBD are particularly popular.
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 demand comes from high-end tenants, including international embassy staff and government officials.
Moira Atkinson, a Property Practitioner with Seeff Franschhoek, reports increased demand from international tenants and individuals semigrating to the Western Cape.
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.
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.
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.
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.