Cape Town and the surrounding coastal towns and villages boast a significant short-term rental market which is set to once again boom this summer as local and international visitors are finally set to return in their numbers.
Ross Levin, MD for Seeff Atlantic Seaboard and City Bowl, says this could be a massive summer season for Cape Town with rates and occupancies expected to reach, and possibly exceed pre-Covid levels.
Following the two-years Covid chaos, there is pent-up demand for travel from both the local and international market, he says. Most establishments are fully booked, and the expectation is for a full recovery this summer. International visitors are also eagerly looking to return to the sunny shores of SA.
Tourism is a significant boost for the rental market. He says that short-term rates are generally back on par with pre-Covid levels, and have increased in some instances, especially hotels and high-profile properties located in the most in-demand areas such as the Atlantic Seaboard.
Average rental rates in Cape Town (according to Booking.com) ranges from around R1,000 to R3,000 per day with top-end properties such as apartments close to the beaches ranging upwards of R3,500 to R5,500 per day and more, depending on the property and location. Villas tend to range from around R8,000 to R18,000 per day.
Levin says the short-term rental stock has been quite adequate this year in view of the hiatus in the market due to the pandemic, but demand is likely to increase as tourism volumes increase. Once we start seeing visitor number growth beyond the pre-Covid levels, renewed investment opportunities can open across the coastal hotspot.
Ciska de Vries, short-term rentals agent for Seeff Hermanus says their market has bounced back very well with bookings increasing by some 71.55% last year. This year, normal weekend bookings have doubled while long weekends and school holidays have been fully booked.
She says further that Seeff Hermanus’ short-term rental stock is already booked well in advance for 2023 with guests expected to arrive from around mid-December with booked periods ranging from 14 to 21 days.
After the difficulties of the Covid period, she says property owners can again look forward to earning good rentals this summer, although rates have remained flat and have come down in some instances. In view of the economic challenges, she says guests are still looking for a good deal, or booking for shorter periods as their budgets are more restricted.
She says further that aside from holiday rentals, the short-term market also benefits from people looking for shorter periods such as 3 to 6 months for reasons such as work or extended breaks. People moving down to the coast also often rent for a short period before buying their new home.
Short-term rental rates for Hermanus and surrounding areas vary greatly depending on the time of the year and the property. You could for example rent from around R1,000 per day or upwards of R3,750 to R7,750 per night for a top end home.
Writer : Gina Meintjes
