Flat rentals show strong growth

05-07-2004

Limited rental stock in two cities has been cited as one of the reasons why flat rentals have shown a remarkable recovery over the past year. The latest Rode’s Report indicates a whopping 30% increase in rental growth for Port Elizabeth, while Durban is hot on the Friendly City’s heels with an increase of 20%.

Port Elizabeth’s increase in demand, which comes off a low base, is possibly influenced by various factors such as the Coega development and the boom in vehicle manufacturing. However, the same would not hold for Durban and the rest of the country, where the upswing is not as big but certainly as noticeable, says Rode CEO Erwin Rode.

Across the country, flat rentals have shown some remarkable growth over the past year: Cape Town recorded 14%, Pretoria 9% and Bloemfontein almost 10%.

“There is a strong demand for middle-class housing, but because of the relatively high price of homes, this demand could now be substituted for rental accommodation. And where there is limited stock, the increased demand would therefore boost rentals.”