Rentals in Sandton and Northern Joburg Set to Boom
The current state of the South African economy has triggered a new growth phase in the home rental market.
This is according to Ronald Ennik, the founder and principal ofChristie’s International-affiliated Ennik Estates, who says the trend is being driven by the growing challenge of homeownership affordability in the current climate of rising interest rates, consumer price inflation and other economic constraints and uncertainty - against a background of zero home price growth.
Ennik says this has resulted in rising tenant demand inJohannesburg’s northern suburbs and Sandton.
“Demand for homes in the R7 000 to R15 000 monthly rental bracket is picking up tremendously - to the extent that there is a huge shortage of stock,” he says.
Demand is currently less intense at the R20 000-plus top end of the market - traditionally the domain of foreign diplomats, professionals, and senior corporate executives.
“However, the recent relaxation of South Africa’s previously onerous visa requirements for foreign visitors should soon provide some impetus in the higher rental bracket,” says Ennik.
For them, he says prestige home rentals in our country are clearly a bargain at current exchange rates.
“However, we must accept that South Africa is currently no longer exciting territory for foreign direct investment - and this is likely to remain true until we get our socio-economic and -political ducks in a row once again,” says Ennik.