What to know about Gauteng's rental market

What to know about Gauteng's rental market

Category Rentals

South Africa's economic hub continues to draw a significant influx of residents, fueling increased demand for rental properties. As young people enter the job market and individuals progress in their careers, they often seek better housing options, leading to a dynamic rental market that generates economic value, according to the Seeff Property Group.

While financial factors and affordability predominantly drive rental decisions, Seeff's agents highlight numerous other motivations behind renting. These include people who might be new to an area and first want to look around before taking the plunge to purchase their own home.

Despite the busy activity in the renal market, a key benefit of Gauteng is that rental rates have largely remained stable in recent years. For instance, data from PayProp indicates that residential rents in Gauteng rose by only 3.6% year-on-year in the last quarter of 2024, trailing behind the December inflation rate of 5.1%. This increase was slightly lower than the 3.9% growth in the Western Cape and notably higher than the 1.4% in KwaZulu-Natal (KZN).

On average, monthly rent in Gauteng stands at about R8,864, slightly surpassing KZN's R8,755 but significantly lower than the Western Cape's R10,118. Nevertheless, there are numerous affordable options within Gauteng's metropolitan areas with lower average rents, which is a big benefit for tenants.

Despite economic challenges, tenant arrears in Gauteng improved last year, with only around 15.7% falling behind in rent by the last quarter, below the national average. This figure is lower than KZN's 19.8% but slightly higher than the Western Cape's 14.3%.

Properties within complexes and estates are currently the most sought-after rentals, although freestanding family homes, particularly in affluent areas like Pretoria East and Sandton/Johannesburg North, remain in high demand. Factors such as proximity to schools, amenities, and transportation networks are crucial considerations for tenants, according to Seeff.

Pretoria East, for instance, is highly desirable among families and high-end corporate tenants, while certain areas cater to students and newcomers to the job market. PG van der Linde, rental manager for Seeff, says looking ahead, the rental market is expected to remain robust, with demand likely to decline only once interest rate reductions take effect.

The most sought-after average rental is around R12,000 per month in Pretoria East. In exclusive suburbs like Waterkloof, Mooikloof, and Woodhill, high-end properties achieve rentals of up to R50,000, and in the Woodhill Golf Estate, up to R55,000 to R79,300 per month.

In Sandton/Johannesburg North, the most active rental price range is between R10,000 and R15,000 per month. Exclusive suburbs like Hurlingham attract affluent tenants and higher rentals.

Caché Pasqualle, the rental manager for Seeff Sandton, says people are drawn to the areas for business as well as the amenities and lifestyle. There are also plenty of good schools and shopping centers. For those unable to purchase here, renting is a more accessible alternative until they attain the financial capacity to buy.

Top properties in Hurlingham have rents up to R45,150 while Hyde Park can see rates of R60,000 to R92,250.

John O'Reilly, rentals manager for Seeff Randburg says in Randburg, which appeals to the middle class due to its centrality and affordability, the most popular rental is between R7,000 and R14,000 per month.

The value for families is excellent, with good family homes in areas such as Randpark Ridge ranging to R22,000 to R25,000 per month. A family home in Ferndale, close to Bryanston, rents out at R24,000 per month.

The East and West Rand areas and Johannesburg South offer affordable options within the R7,000 to R14,000 per month range. Sectional title and security complexes are particularly popular. Soweto offers very affordable rentals, say Seeff licensees Khosi Sibiya and Phindi Mphahlele. Here, you can find a small one-bedroom unit for under R,500 and a two-bed house for under R5,000. A much bigger family house can be rented for about R5,000 to R8,000 per month.

Author: Gina Meintjes