Just 25 minutes from Cape Town’s city centre, Durbanville and its neighbouring suburbs are growing in popularity for those looking to rent. This is largely because it has the slower, more peaceful pace of life, with great schools, amenities, and of course, nearby wine farms.
As the semigration trend took hold two years ago, rentals in the Durbanville vicinity experienced a surge as many used it as a base to explore the Cape area seeking a permanent home. The interest rate was also a factor, given that many put their home ownership dreams aside until the market settled.
Nicky Hansen, franchisee of Just Property Dynamic (Durbanville and Brackenfell), confirms that “over the past year, South Africa has seen a notable shift in rental demand, particularly in Cape Town’s Northern Suburbs.
“However, the market faces limited stock availability for high-end properties. This scarcity is partly because homes in this region are often owner-occupied, and their rental yields tend to be lower than those of smaller buy-to-let properties like apartments.”
Hansen also says there has been a surge in interest for larger houses with four to five bedrooms. “Tenants seeking these properties are often willing to pay upwards of R40,000 per month in rental for homes that offer the right facilities in their desired locations.”
The typical tenants for these larger properties are middle-aged professionals with school-going children. Proximity to top-rated schools in the area is a significant factor driving demand. There are also a number of new developments presenting apartments from just above R1-million, which are drawing attention from investors seeking a passive income from rent. Even existing estates are growing in popularity given the panoramic views of the nearby rolling vineyards, and the nearby upscale eateries and cafe society attractions.
“Conversely, areas with affordable housing options often attract younger demographics, offering higher rental yields due to lower property costs. However, these areas may experience higher tenant default rates and slower capital growth,” says Hansen, who has been keeping her eye on rental yields.
“For those wishing to invest in the right buy-to-let property, currently rental delivers higher returns than traditional investments with financial institutions,” she says. “As an added advantage, the property’s value appreciates over time (capital growth), while rental income increases annually by 8% to 10%. This dual benefit means you’re not only growing your income stream but also strengthening your balance sheet—building both immediate cash flow and long-term wealth.”
- A property with a net rental yield of 8% is generally considered a good investment.
- This figure is calculated as the annual rental income, less the annual expenses associated with owning and maintaining the property, expressed as a percentage of the property’s value.
- By ensuring the yield is competitive, landlords can secure a stable and profitable investment.
“Traditionally, buy-to-let properties in high-demand suburbs with good schools and established amenities offer stable capital growth and lower tenant default rates. On the other hand, properties in emerging areas may deliver higher rental yields but come with increased risks. The key to success lies in finding the right property, at the right price, in the right location—balancing capital growth and rental yield to maximise returns,” says Hansen, which is why she recommends partnering with a skilled rental agent who can significantly mitigate risks associated with tenant defaults, loss of rental income, and property damage.
“An experienced agent ensures proper tenant screening, effective property management, and timely maintenance. Their expertise not only safeguards your investment but also enhances its profitability.
“With the right strategy and professional support, landlords can navigate market trends and achieve sustainable financial success,” says Hansen. Buy-to-let property investments, particularly in Sonstraal, Vygeboom, Amanda Glen, Eversdal, and Durbanville Hills, offer a lucrative opportunity for building wealth through rental income and capital growth.
