Cape Town tenants could see property prices ease up, says RE/MAX
Real estate company RE/MAX predicts that this year's annual Cape Town rental increase won't be nearly as high as the 8% to 10% experienced last year.
The Cape Town rental market is said to be experiencing a major correction phase after an unjustified period of escalated prices.
Property expert Grant Rea says the drought, Airbnb, an oversupply of rentals, and a decline in new Cape Town residents are some of the contributing factors to the challenging times.
Rea, a certified sales and letting specialist at Re/Max Living, says that while many may consider it to be a downward trend, he sees it as a "normalisation".
The good news is that rentals are heading downwards. A lot of landlords are having to temper their expectations in terms of rental returns.Grant Rea, certified sales and letting specialist at Re/Max Living
Rental growth is in decline in Cape Town, and in fact nationally.Grant Rea, certified sales and letting specialist at Re/Max Living
Landlords are going to have to start lowering their prices or sit empty for that matter.Grant Rea, certified sales and letting specialist at Re/Max Living
The drought certainly was one of the factors.Grant Rea, certified sales and letting specialist at Re/Max Living
There were also major affordability issues. The trajectory of the growth of rentals was just insane.Grant Rea, certified sales and letting specialist at Re/Max Living
Listen to the discussion on the Cape Town rental market:
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