The demand for rental properties has led to sky-high rental prices in East London suburbs, with many opting to rent in cheaper but more densely populated areas.
House hunters looking for a decent apartment in East London’s affluent suburbs can expect to fork out between R7000 and R12000 rental.
While those wanting to be close to the CBD can expect to pay about half that price.
Property developer Xoli-swa Tini of Xoliswa Tini properties attributed the increase to the high inflation rate which had led to many people not being able to afford to buy property.
“Property prices go up every single year as it is, but right now the demand is pushing prices up,” she said.
“People are opting for rentals because many cannot afford to buy. In any market, if there is a demand for a product, that usually pushes the prices up.”
Tini added that location was one of the main determining factors in rental prices.
Recently, East London has seen an increase in new rental property developments targeting middle-income earners.
The developments are located in East London’s leafy suburbs and one can expect to pay from R4500 for a bachelor flat.
“The location is the most important factor besides the size. Obviously a rental in Amalinda won’t cost the same as a rental in Beacon Bay.
“Location is the deciding factor but the prices have to be market related or no one will pay,” she said.
The Saturday Dispatch compared the rental prices of two similar properties located in different areas and the difference came to R1000.
A one-bedroom apartment in Saxilby in Amalinda with a lounge, kitchen, a bathroom with a shower and built-in cupboards costs R4500. The apartment has a prepaid electricity meter.
A one-bedroom flat in Nahoon, also with a lounge, kitchen, bathroom with shower and built in cupboards is going for R5400. The rental excludes water and lights.
Harcourts Cornerstone estate agent Dina Anvari said Southernwood was proving to be a popular area.
This was echoed by Sanet van der Merwe, the principal franchisee owner at Rawson Properties East London Select, who said those in the lower income bracket looking to rent between R4000 to R5000 a month tended to live in Southernwood and Quigney.
Van der Merwe said for the higher income earners looking at paying between R7000 and R12000 a month, Gonubie and Beacon Bay were their areas of choice.
Middle income earners wanting to rent between R6000 and R7000 a month on the other hand usually opted for Cambridge or Amalinda.
One of the main challenges affecting tenants was the annual increases, with some property owners increasing rent by 10% each year.
Anvari said rentals should increase by 5% to 7% a year with anything above 10% considered expensive.
“Look at it this way, if someone moves into a house and pays R5000 per month for rent, which goes up by 10% every year, when that person moves out three years later then that rental will be R6500.
“It won’t go down when that person moves out. It will stay the same and instead increase year after year.” — zisandan@dispatch.co.za
Steep cost of finding a home
House hunters looking for a decent apartment in East London’s affluent suburbs can expect to fork out between R7000 and R12000 rental.
While those wanting to be close to the CBD can expect to pay about half that price.
Property developer Xoli-swa Tini of Xoliswa Tini properties attributed the increase to the high inflation rate which had led to many people not being able to afford to buy property.
“Property prices go up every single year as it is, but right now the demand is pushing prices up,” she said.
“People are opting for rentals because many cannot afford to buy. In any market, if there is a demand for a product, that usually pushes the prices up.”
Tini added that location was one of the main determining factors in rental prices.
Recently, East London has seen an increase in new rental property developments targeting middle-income earners.
The developments are located in East London’s leafy suburbs and one can expect to pay from R4500 for a bachelor flat.
“The location is the most important factor besides the size. Obviously a rental in Amalinda won’t cost the same as a rental in Beacon Bay.
“Location is the deciding factor but the prices have to be market related or no one will pay,” she said.
The Saturday Dispatch compared the rental prices of two similar properties located in different areas and the difference came to R1000.
A one-bedroom apartment in Saxilby in Amalinda with a lounge, kitchen, a bathroom with a shower and built-in cupboards costs R4500. The apartment has a prepaid electricity meter.
A one-bedroom flat in Nahoon, also with a lounge, kitchen, bathroom with shower and built in cupboards is going for R5400. The rental excludes water and lights.
Harcourts Cornerstone estate agent Dina Anvari said Southernwood was proving to be a popular area.
This was echoed by Sanet van der Merwe, the principal franchisee owner at Rawson Properties East London Select, who said those in the lower income bracket looking to rent between R4000 to R5000 a month tended to live in Southernwood and Quigney.
Van der Merwe said for the higher income earners looking at paying between R7000 and R12000 a month, Gonubie and Beacon Bay were their areas of choice.
Middle income earners wanting to rent between R6000 and R7000 a month on the other hand usually opted for Cambridge or Amalinda.
One of the main challenges affecting tenants was the annual increases, with some property owners increasing rent by 10% each year.
Anvari said rentals should increase by 5% to 7% a year with anything above 10% considered expensive.
“Look at it this way, if someone moves into a house and pays R5000 per month for rent, which goes up by 10% every year, when that person moves out three years later then that rental will be R6500.
“It won’t go down when that person moves out. It will stay the same and instead increase year after year.” — zisandan@dispatch.co.za
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