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.

Also read: WC rental market has tumbled due to overpricing - TPN

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:


Recommended

by NEWSROOM AI
Read More
'Aim of heritage management isn't to squash development in Bo-Kaap'

'Aim of heritage management isn't to squash development in Bo-Kaap'

Independent heritage consultant Quahnita Samie says the development project in Lion Street appears to be continuing after protests.

CT pupils ready for world robotics championships after winning nationals

CT pupils ready for world robotics championships after winning nationals

The team of pupils from the German School in Cape Town were crowned the 2018 National FLL champions this month.

CT's Imhoff snake park appeals for donations to make big move

CT's Imhoff snake park appeals for donations to make big move

Co-owner Tracey Bodington says the running costs at the current venue have become too expensive.

Tired of losing parking tickets? This app could be the answer to your problems

Tired of losing parking tickets? This app could be the answer to your problems

Admyt is the name of the app which has turned trips to the shopping mall into a ticketless, cashless and hassle-free experience.

Home loan rejected? That's where Rent2Buy comes in

Home loan rejected? That's where Rent2Buy comes in

The homeownership concept seeks to provide ordinary South Africans with the opportunity of owning their own property.

WC rental market has tumbled due to overpricing - TPN

WC rental market has tumbled due to overpricing - TPN

The Tenant Profile Network (TPN) MD says excessive rental prices in the Cape over the past two years have led to a severe shift.

Popular articles
'Cyril is the most popular president since Nelson Mandela'

'Cyril is the most popular president since Nelson Mandela'

Author Max de Preez weighs in on where SA would be if Jacob Zuma was still president and the impact of Ramaphosa now.

Kirstenbosch curator's widow thanks hospital's 'unsung heroes'

Kirstenbosch curator's widow thanks hospital's 'unsung heroes'

Kirstenbosch National Botanical Gardens curator Phillip Le Roux died on Wednesday after a horrific cycling accident.

Here's how to check your load shedding schedule in Cape Town

Here's how to check your load shedding schedule in Cape Town

Eskom has warned that more power cuts can be expected as maintenance continues over the next twelve months.

10 key changes that kick in when water restrictions drop from Level 5 to Level 3

10 key changes that kick in when water restrictions drop from Level 5 to Level 3

Cape Town is dropping water restrictions from Level 5 to Level 3 as of Saturday, 1 December. Here's how it'll affect residents.

[LISTEN] Meet your 2018 Idols SA winner... Yanga Sobetwa!

[LISTEN] Meet your 2018 Idols SA winner... Yanga Sobetwa!

17-year-old Yanga Sobetwa was recently crowned the winner of the 14th season of the reality singing competition.

Sassa beneficiaries to receive an early Christmas

Sassa beneficiaries to receive an early Christmas

Sassa beneficiaries will receive their grant money on 28th of November and they are advised to use it wisely this festive season.

[WATCH] Ellen Pakkies shares her own story as local film adaptation hits screens

[WATCH] Ellen Pakkies shares her own story as local film adaptation hits screens

Eleven years after murdering her drug addict son, the film about Ellen Pakkies' story is being shown at cinemas across SA.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.