Could Atlantic Seaboard rentals hit R200 000 p/m soon?

Private Property South Africa
Press

Considering that Zimbali (KZN, Dolphin Coast) has hit R100 000/month and the Atlantic Seaboard is already at around R170 000/month, then the R200 000/month mark does not seem too farfetched.

The latest FNB Property Barometer once again points to the Atlantic Seaboard and City Bowl as being the strongest property markets in the country and while inevitably slower, given the economic climate, it still outpaces the economic powerhouse of Gauteng and inflation by some margin.

The barometer notes that as at the second quarter of 2017, the Atlantic Seaboard average house price inflation rate stands at a phenomenal 29.9% year-on-year and the City Bowl at 21.1%. Samuel Seeff, chairman, Seeff Property Group says that there can be little doubt that as with the sales sector, the rentals sector of the Cape metro remains the strongest performer in the country. Recent reports from TPN have also pointed to the Cape as having the strongest rentals market, generally with the best paying tenants, this, despite the premium that Cape property now commands, including a rental premium of up to 20% and more depending on the area.

Where R80 000/month seemed a high rental just two years ago, we are now seeing top end properties in Clifton are commanding rate of up to R150 000-R170 000. Whether these will be sustainable is questionable as Dinis Martins, COO for Seeff Atlantic Seaboard and City Bowl says that it is likely that top end rates will come under increasing pressure. So, while you will get the odd rental at this rate, it is not going to be the norm in a weak economic climate.

The Atlantic Seaboard is home to the country’s most expensive rental markets, both for long and short term with the highest average rates paid here. The fabulous location, beaches and facilities combined with the limited property stock being part of the attraction. Karyn Farrell, Rental Admin Manager for Seeff Atlantic Seaboard and City Bowl says the top suburbs in terms of commanding the highest monthly rentals are Clifton, Bantry Bay, Fresnaye and the V&A Waterfront, but Camps Bay is also highly rates. The highest rentals here are R80 000/month at the Waterfront, R170 000/month in Bantry Bay/Fresnaye and R150 000/month in Clifton.

While the most popular rental range is between R25 000-R40 000/month, rentals even in Mouille Point can now reach R100 000/month and more. At the V&A Waterfront, you can rent an opulent 504sqm penthouse for R170 000/month. Current escalation rates stand at around 8% on average while landlords are achieving yields/ROI of around 4% on average, but this varies according to the property and location. The more expensive the property, the lower the rate tends to be simply because top end rates are under pressure.

View some of the opulent property available to rent in Atlantic Seaboard.

Clifton:

A fabulous four-bedroomed villa with all the amenities you could want for, overlooks the ocean. Monthly rental of R135 000/month

four-bedroomed villa in Clifton

View the property here

Fresnaye:

A magnificent four-bedroomed villa high up in Fresnaye with stunning views. Monthly rental of R75 000/month

four-bedroomed villa in Fresnaye

View the property here

View more of this marvellous neighbourhood here:

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Explore neighbourhoods mentioned in this article

Atlantic Seaboard
Beautiful views, beautiful people
Living in the Atlantic Seaboard is the perfect culmination of all things great. The Atlantic Seaboard is comfortably wrapped between the coastline and the mountains. It is an exclusive area with beautiful homes on the mountain, allowing for incredible sea views. Waking up to the fresh smell of the ocean and going for a run along the promenade is standard practice among residents in these areas. It is close to the city centre, with easy access to the national highways, and right on the beachfront.
Cape Town City Bowl
Hip and Happening Hotspot
Living in the CBD of Cape Town is unlike any other city centre. Table Mountain, Lions Head and Signal Hill cradle the City Centre, with mountain hikes and forests in easy access and it is within minutes’ drive to some of the world’s best beaches. Depending on which area in the city you live, the housing arrangements can vary from large leafy houses in Oranjezicht, to small studio apartments in the City Centre. Living in the CBD of Cape Town gives the best of both worlds as you're in close proximity to all amenities, as well as have nature on your doorstep.
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