RESIDENTIAL LETTING FORECAST
Category Advice
Vacancies across our portfolios of managed residential properties have recently been at the highest level we've seen in the last 18 months or so. This ties in with what has been seen across the Cape Town letting market in general. The City Bowl and Atlantic Seaboard nodes have been the hardest-hit in terms of increased vacancies and resultant reduced rental rates. Rentals have adjusted downwards by up to 25% year-on-year.
We are two months into the new year, a time that is typically a busy one from a letting perspective. We are pleased to report that we are beginning to see some signs of improvement as Capetonians appear to be committing to long-term leases again. We have seen a number of new leases concluded starting 1 February and 1 March.
It is our view that this renewed interest is a result of Cape Town effectively "returning to work", following the easing of lockdown restrictions, and the adjustment of rental rates to more attainable levels for the average renter.
We believe we will now see an uptake of vacant properties, but as managing agents, we need to continue to encourage competitive asking rates among our owners, push our advertising and offer flexible viewing availability, considering there is still a fair amount of supply in the market.
Author: Teresa Hamilton