Seeff offers insight into Johannesburg South's rental market
More and more tenants in Johannesburg's southern suburbs are looking for rental accommodation in the lower and middle price brackets and there is little demand for rental property priced over R15 000 per month.
Frans van Staden, Seeff's Managing Director in Meyersdal, says that here they are seeing many people who prefer renting to buying at the moment.
"The more affordable suburbs of Meyersdal - including New Redruth, Randhart and Brackenhurst to name a few - are attracting a lot of attention. These suburbs offer a good property mix of sectional title, HOA developments and full title properties.
We find that younger tenants are especially interested in secure complexes and preferably newer developments. An area like Alberton is also in high demand due to its proximity to the major highways and easy access to all of the Western, Southern and Eastern areas of Johannesburg."
Van Staden continues that the greatest rental demand in their areas is for two and three bedroom townhouse and cluster developments priced between R6 500 and R9 000 per month. Densely populated developments are extremely sought after because of the perception of security it affords residents.
"While there are still those who want to live in estates and are willing to pay a premium of around 35% for living in a top property in an estate like Meyersdal Eco estate or Meyersdal Nature estate, monthly rentals here are priced upwards of R30 000 per month."
Van Staden concludes that while Meyersdal is not experiencing an oversupply of affordable rental property in any bracket, stock shortages of pet friendly and ground floor townhouses priced between R6 000 and R7 500 per month is evident.
"The market in Meyersdal is growing and demand is high. Should you invest in a high demand residential area there would probably be rental demand for your property all year round.
Most tenants are looking for rental property in secure boomed off areas that are pet friendly, close to highways and schools and property that have modern kitchens and bathrooms with tiled floors."
Trevor Sturgess, Seeff's MD in Kibler Park, says property here priced between R5 000 to R8 000 per month is most sought after and that the branch is also experiencing rental stock shortages in this segment. The highest monthly rental this branch has recently fetched is R13 500 per month.
"Many of our tenants consist of emerging middle markets that have credit issues to address before they are able to buy property. We are also seeing many families who have invested in Kibler Park years ago that are now keeping their starter homes as an investment when they move to bigger homes."
Suzanne Ridolfi, Seeff's MD in South Crest, says the rental demand in this middle class suburb is extremely high.
"While South Crest does not cater for people who prefer prestigious suburbs, the area appeals to tenants looking for good value for money.
We are especially experiencing high demand for full title properties priced between R8 000 and R10 000 per month and our biggest shortage is for full title property priced between R7 000 and R9 000 per month.
While we don't have an oversupply, South Crest has less demand for townhouses priced between R6 000 and R8 000 per month as the market here is flooded with this type of property in this price bracket."
Ridolfi concludes that many tenants in South Crest would prefer to buy property if banks were to loosen their lending criteria.
"South Crest's current list of tenants shows the influx of 20 to 30 year olds entering the rental market. Security, secure parking and pet-friendly developments are what all tenants are looking for."
Author: Tanya van Buuren Botma