The rental market across Durbanville and Welgedacht in Cape Town’s northern suburbs is thriving for a variety of reasons, according to Daniela de Villiers, Seeff’s rentals manager for the area.
Landlords have been able to earn good returns on their rental property while there are also opportunities for investors in the rental market, she says. A key benefit is that the area appeals to tenants for the blend of suburban tranquillity, and urban convenience. There is an excellent choice of schools and amenities including business hubs, retail such as the Tygervalley Shopping Centre, medical care and more.
The area is very centrally located with easy access to several main arterials. Neighbourhoods are well-maintained, and safe, and appeal to those who enjoy a country-like lifestyle with the Durbanville Wine Valley with wine farms, along with walking, jogging, and biking trails right on your doorstep.
Durbanville and surrounds appeal to a wide range of tenants and offer a range of properties and price points. The average rental range for the area is between R9,000 to R25,000, but there is plenty on offer for luxury tenants looking for a spacious home, and plenty of garden space.
Luxury homes tend to range upwards of R30,000 with as much as R51,000 per month recently achieved by Seeff for a luxury home in the Kanonberg Estate which is sought after as it also offers a wellness centre. Seeff also rented out a property in Clara Anna Fontein, another stunning lifestyle estate which lies close to the Meerendal Wine Estate for R60,000 per month.
Anneke Roux, a Seeff rental agent in the Welgedacht area says the area attracts various tenants, from young professionals to families. It also appeals to those who enjoy an active lifestyle as the neighbourhoods are safe for walks and bicycle rides, and provide stunning views.
Given the high demand, there is a shortage of rental stock in the R13,000 to R20,000 per month range, thus offering opportunities for landlords and property owners. There are also opportunities for investors who want to invest in rental property and earn a stable income with rental yields at around 6% to as much as 10% depending on the property and area.
Allison Oosthuizen, another Seeff rental agent in the area says aside from families drawn to the good schools, the area is also popular with young professionals looking for apartments which are more affordably priced compared to the Cape Town CBD. Townhouses are also a popular choice as a more affordable alternative compared to the bigger houses, especially for young couples and new families. Freestanding houses close to the schools are always in demand.
Rental rates tend to start at around R7,000 per month for a garden cottage. Apartments range from R9,000-R11,000, townhouses from R14,000-R18,000, and freehold houses upwards of R20,000 per month. Luxury homes in lifestyle estates have rented out for between R41,000 and R51,000 per month.
She agrees that demand is high while rental stock is in short supply, especially in the more affordable price bands. Good rental investments are those priced between R1.2 million and R2.4 million which can achieve a rental income of R9,000 to R20,000 per month, providing a rental yield of 5-7%.
While the market for high-end rentals remains active, Gratia van Jaarsveld, another Seeff rental agent, says landlords must ensure the right pricing strategy to attract the right tenant within a reasonable period.
She says there is also a notable presence of students, particularly those studying at nearby medical facilities and doing practical rotations at state hospitals in the area. Pet-friendly properties are also in high demand. She agrees that there are good opportunities to invest in rental property in the Durbanville area.
Michè Versfeld, another rental agent, says many tenants are coming from Gauteng, especially the Pretoria area. Aside from the location, and good schools, these tenants are also attracted to the relative affordability of Durbanville and surrounding areas compared to some other Cape Town locations.
Seeff also highlights important advice for landlords. Rental agent, Lisa Rochefort says landlords should focus on keeping their properties well-maintained as poor maintenance can bring down the value of your property as well as the rental income that you can earn. A well-maintained property not only attracts quality tenants faster but also helps retain them for longer periods.
Keeping your price expectations in line with the market is also important, as is working with a credible rental agency with skilled agents, an admin team and top-class tech and systems, concludes Seeff’s rental manager, Daniella de Villiers.
