Due to a shortage of suitable and reasonably priced long-term rental stock, may Cape Town join the ranks of other global cities turning to bed-sharing rentals at Florence Residences?
As the city’s long-term rental market approaches new heights of madness at Florence Residences Floor Plan—with postings for apartments vanishing within hours, particularly in the most desired areas—this concern persists in the Florence Residences Showflat.
According to Chad Shapiro, the sales and marketing manager for Lew Geffen Sotheby’s International Realty in the City Bowl and Atlantic Seaboard, this is particularly true during the winter months (December to March) due to the increased number of tourists.
The short-term rentals are attracting landlords, who are exacerbating the shortage of long-term choices. The tremendous demand from tenants nationwide and even internationally is causing rates to skyrocket.
Cape Town rental prices have reached unbelievable levels, according to Ross Levin, licensee for Seeff Atlantic Seaboard and City Bowl. One example is the R134,000 monthly cost at Bantry Bay.
In addition to the anticipated robust tourist season, Levin anticipates that semigration will significantly increase demand as we approach 2024, making for an even busier market.
The Western Cape regional manager for Pam Golding Properties, Basil Moraitis, has said that recent reports indicate that the number of foreign arrivals at Cape Town Airport has surpassed the levels seen before the epidemic.
One of “the most acute shortages in rental stock in over a decade” is happening on the Cape, he says.
Finding a cheap, long-term rental is a struggle for many cities, not just Cape Town.
According to Levin of Seeff, the highest monthly rental prices he has seen are as follows: R130,000 in Bantry Bay, R120,000 at the Waterfront, R95,000 in Mouille Point, R85,000 in Tamboerskloof, and R65,000 in Sea Point, Three Anchor Bay, and the CBD.
The upper crust in popular tourist areas isn’t the only one feeling the pressure, however.
The rental market has witnessed an even greater surge in the affordable market, where rentals range from R3000 to R8000. Darren Francis, a property entrepreneur who started his career in the Mitchells Plain, says that there has been a lack of investment in developments to accommodate the influx of renters who cannot afford to buy a home.
This week alone, we got over 160 social media comments and 170 email inquiries on our three Mitchells Plain rental homes.
There is a dearth of reasonably priced, high-quality lodging in the budget market. In the next months, this issue will only get worse at an exponential rate. Francis warned that there is a lot of competition for hotels in these locations due to the high demand for reasonably priced rooms.
