Homeowners in Johannesburg with affordable property to let are experiencing huge demand and the available stock for tenants is very limited, experts say. With around half of all home loan applications still being turned down, many first-time buyers in particular are still finding it nearly impossible to enter the property market. In addition, many consumers are still cash-strapped, paying off high debts, and feel uncertain about their job prospects due to the current economic environment. Renting property is therefore seen as a much more realistic option at the moment, and demand for affordable property to let is in particularly high demand by young families and professionals. While buying is slowly starting to pick up in Johannesburg compared to last year, the rental market in areas like Midrand and Soweto are doing very well, particularly those units targeting individuals earning R15 000 per month and less. With limited affordable stock available, landlords should have no problem getting good tenants for affordable property to let. It seems as if the World Cup has a very limited impact on available properties to let. While many homeowners in Cape Town, particularly in popular areas such as the city centre and along the Atlantic Seaboard, are taking their rental properties off the market to try and cash in on the expected boom in tourism numbers, owners in most areas of Johannesburg seem to prefer the security of long-term tenants, estate agents say. While owners shouldn’t have any trouble attracting tenants in Johannesburg in the affordable market segment, rental incomes have shown very sluggish growth in 2009 and a minimal improvement is expected in 2010, research shows. The latest numbers by Rode & Associates show rental income increased by only 2% in Johannesburg last year. The East Rand experienced the highest growth with 5%.
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