Johannesburg leads in top rentals
Category Sunday Times Property
A recent report by the Tenant Profile Network shows that six out of South Africa’s 10 most expensive rental suburbs are located in Johannesburg
Dainfern Valley Estate topped the Tenant Profile Network (TPN) list of most expensive rental suburbs, with an average rental of R57,625 a month in the second quarter of 2015. It was followed by the three Cape Town suburbs of Llandudno, Bantry Bay and Camps Bay.
The next two most expensive rental areas are Dainfern Golf Estate and Dunkeld, with average rentals of R35,841.46 and R34,087.50 a month, respectively.
Analysts suggest that these high rental yields are good cause for investing in rental properties in the leading areas.
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Tamara Markman, who heads up corporate and private residential leasing for Ennik Estates/Christie’s International, says that high-end rentals are dominated by foreign professionals working in South Africa on contract, who make up around 75% of her clients. The other 25% are South African captains of industry who, for whatever reason, prefer not to own their homes.
Investing in a buy-to-let property isn’t as simple as purely buying by location. There are many things that would-be investors need to ensure that a property offers before putting it on the market. Both South African and foreign tenants have similar rental priorities. “Their number one concern is security – they are looking for boomed areas or cluster developments, with 24-hour security, alarms, electric fences and beams in the garden,” says Markman.
Families in this market look for houses with reasonably sized gardens and pools, while individuals prefer two-bedroom apartments. Either way, Markman says, the space must be stylish and immaculately furnished. Families look for areas that near schools and reasonably close to shops, a gym and recreational spaces, she adds.
Markman’s leading Johannesburg rental areas for families are Sandhurst, Westcliff, Riverclub, Saxonwold, Houghton, Parkhurst and Parkview, while individuals prefer apartments in those areas as well as in the heart of Sandton.
SOUTH AFRICA’S MOST EXPENSIVE RENTAL SUBURBS
• Dainfern Valley Estate, Johannesburg – R57,625
• Llandudno, Cape Town – R48,500
• Camp’s Bay, Cape Town – R42,666.67
• Bantry Bay, Cape Town – R39,000
• Dainfern Golf Estate, Johannesburg – R35,841.46
• Dunkeld, Johannesburg – R34,087.50
• Sandhurst, Johannesburg – R32,850
• Inanda, Johannesburg – R32,750
• Woodhill, Pretoria – R32,630.77
• Hyde Park, Johannesburg – R32,050
-Tenant Profile Network, Q2, 2015
Author: Georgina Guedes