Although the luxury rental market is slowing, many wealthy tenants are still prepared to pay a premium for rentals in elite areas. Here are the most expensive rental suburbs and what the average property looks like in each of them.
Although buying a home is still the dream for most South Africans, many of us, especially those that are unable to afford to buy, choose to rent instead. Renting a home is generally cheaper than paying a mortgage on an equivalent property and maintenance is paid for by the landlord. In addition, renting allows for greater mobility and flexibility for those who may need to move frequently due to their jobs or enjoy travel. The land expropriation debate that is currently ongoing may also be causing some potential buyers to rent while they wait on the issues to be clarified.
Private Property rental data for July 2018 shows that the Western Cape is currently the most expensive province to rent in with a median rental price of R13 500 per month. The median rental price in the most affordable market, the Free State, is less than half that at R5 995 per month.
Rentals per province
According to multiple reports, the rental market in South Africa is slowing down with massive increases in the cost of living putting consumers under financial pressure and limiting the increases that landlords can implement.
This is also true at the upper end of the market which is starting to experience an oversupply of luxury homes for rent. There are however still many business executives, wealthy foreigners and multinational companies that are still prepared to pay a premium for rentals in elite areas.
Top 10 suburbs with the most expensive median rental prices according to Private Property data for July 2018
Most expensive suburbs to rent property
1. Waterfront (R45 0000 per month)
The Waterfront in Cape Town offers lucky residents an enviable lifestyle, gorgeous views and a friendly community. Convenience is a major factor for renting here with the CBD close by and world-class facilities available in the precinct.
What R45 000 per month gets you in the Waterfront
2 bedroom apartment for rent in Waterfront
View this property for rent in Waterfront here
2. Dainfern Valley (R45 000 per month)
Home to well-known celebrities, artists, entrepreneurs, business owners, wealthy individuals and expatriates, Dainfern is a residential suburb and golf estate north of Johannesburg. Residents of the area enjoy a safe, carefree lifestyle and the convenience of being close to schools, shops and recreational facilities.
What R45 000 per month gets you in Dainfern Valley
4 bedroom house to rent in Dainfern Valley
View this property for rent in Dainfern Valley here
3. Clifton (R42 000 per month)
Clifton is home to some of South Africa’s most desirable real estate with lavish homes and apartments, but the magnificent ocean views and beautiful beaches remain the focus. Rental properties in Clifton peak at R200 000 per month, but the median property is listed at a somewhat more 'affordable' R42 000 per month.
What R42 000 per month gets you in Clifton
2 bedroom apartment to rent in Clifton
View this property to rent in Clifton here
4. Inanda (R40 000 per month)
Once deemed a far-flung country suburb of little significance, Inanda is now one of Johannesburg’s most sought after suburbs and commands some of the city’s top property prices. The suburb boasts tree-lined streets, large open spaces and beautiful, luxurious homes.
What R40 000 per month gets you in Inanda
3 bedroom simplex to rent in Inanda
View this property to rent in Inanda here
5. Constantia (R35 000 per month)
Constantia is a green, lush slice of heaven boasting old wine farms, and beautiful surroundings. Although it boasts a countryside setting, modern conveniences like shops, restaurants and delis are close by.
What you can rent for R35 000 per month in Constantia
5 bedroom house to rent in Constantia
View this property to rent in Constantia here
6. Melrose Arch (R34 000 per month)
Melrose Arch is a mixed-use development that offers an enviable live, work, play lifestyle. The bustling area offers upmarket stores, café culture and premium residential property in a secure setting.
What you can rent for R34 000 per month in Melrose Arch
2 bedroom apartment to rent in Melrose Arch
View this property to rent in Melrose Arch here
7. Fourways Gardens (R32 0000 per month)
This peaceful residential estate boasts its own nature reserve described as a “tiny piece of untouched Africa”. An attractive lifestyle and a multitude of nearby amenities contribute to the demand for homes within the estate.
What you can rent for R32 000 per month in Fourways Gardens
4 bedroom house to rent in Fourways Gardens
View this property to rent in Fourways Gardens here
8. Woodhill (R30 000 per month)
Woodhill offers magnificent views and modern living in a secure environment with a country feel. It is a popular golfing destination with a beautifully manicured course ranked among the top 100 courses in South Africa.
What you can rent for R30 000 in Woodhill
4 bedroom home to rent in Woodhill
View this property to rent in Woodhill here
9. Zimbali (R30 000 per month)
The North Coast of KwaZulu Natal has a number of luxurious upmarket estates but Zimbali is undoubtedly the crown jewel. Zimbali is known for its five-star golf course designed by Tom Weiskopf, an abundance of fauna and flora and a variety of amenities.
What you rent for R30 000 per month in Zimbali
3 bedroom apartment to rent in Zimbali
View this property to rent in Zimbali here
h3>10. Bantry Bay (R30 000 per month)
With the vibrant energy of Sea Point on the one side and the secluded beach lifestyle of Clifton on the other, Bantry Bay has the best of both worlds. The suburb is protected from Cape Town’s winds, has uninterrupted sea-views and easy access to the city, making it a popular option for wealthy renters.
What you can rent for R30 000 per month in Bantry Bay
For R30 000 per month you can enjoy sensational sunsets from this fully-furnished and equipped beachfront apartment. The unit has two en-suite bedrooms, a modern kitchen and excellent security.
View this property to rent in Bantry Bay here
Background
This report is compiled using search activity and median asking prices of residential properties listings on Private Property’s website in July 2018. To maintain consistency over time and assist comparison between areas, data is only presented for areas with 50 or more listed properties and grouped by the following common attributes of residential properties in South Africa: • type (houses, complexes or flats)
Some effort is also made to exclude outliers from the analysis. A feature of Private Property’s Report is that it provides insights based on current asking prices rather than the eventual rental prices of property transactions. This is an important distinction, as the two measures provide slightly different insights into the property market.
