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With one of the lowest rental vacancy rates in South Africa, the Western Cape is seeing more and more High-Net-Worth Individuals (HNWIs) renting property instead of buying.

This trend has pushed rental prices, especially in Cape Town, into the stratosphere.

Property owners in three Cape Town neighbourhoods are absolutely coining it lately, with rentals in Camps Bay, Clifton, and Bantry Bay averaging up to R120,000 per month.

The Atlantic rental boom is laid out in the recently released Rode’s Property Report for the second quarter of 2024, which showed even national rental vacancies were at historic lows, with flat vacancy rates on a national level averaging 6.7% in the second quarter of 2024, down from 7.9% in the first quarter of 2024.

The Western Cape has the lowest at 2.7%. Oh, to be a homeowner who bought a house in the early 2000s!

Even better news for local landlords is that the Western Cape also has the lowest rates of tenants who are in arrears, with only 14.2% of tenants in areas on their accounts.

High interest rates combined with poor employment and general political and economic uncertainty have resulted in many households being unable to afford to live on the property they own, and for these people, rental income is the best way to hold on to their investments.

The volatile real estate market can make buying a risky investment, while economic fluctuations and changes in property values can impact the return on investment.

Renting mitigates this risk, providing access to high-end properties without tying up substantial capital.

As mentioned, more affluent tenants are opting to rent, and with the increase of people choosing rental income above servicing their bond, this allows HNWIs to enjoy the luxury and exclusivity of these prestigious areas without the long-term commitment of ownership—especially in South Africa.

According to Rode’s report, these mobile HNWIs are flocking to Camps Bay, Clifton, and Bantry Bay.

While standard rental units range, on average, from R11,250 per month for a one-bedroom to R43,000 per month for a three-bedroom, rental for upmarket properties in Camps Bay, Clifton, and Bantry Bay, rent averaged R40,000 per month for a one-bedroom to R120,000 per month for a three-bedroom.

According to Property24, over 90 rentals are listed at R100,000 per month or more in Cape Town, with some going up to R300,000 per month.

If you are wondering what kind of a flat you can rent for that amount of money, check out this 4-bedroom gem in Clifton at R250,000 per month.

A little bit too much white for my liking, but off-street parking and a pool make up for it.

If you really want to feel poor, also check out this R400,000-a-month flat in Bantry Bay.

Before you rush to convince your partner to start an OnlyFans account, the rentals discussed here are very much at the high end of the market, so even without flooding the internet with pictures of your feet, there are still a few flats available in these areas within the reach of ‘normal’ folks.

For instance, this charming 4-bed villa in Camps Bay (with sea views) at a reasonable R48,000 per month.

 [source:businesstech &property24]