Record-breaking R450 000 rental achieved in Constantia, Western Cape
Dogon Group Properties, the company responsible for the record-breaking sale of a Cape Town home for R290 million in 2016 has done it again, this time in the rentals market with a R220 000 per month lease on a house in Bantry Bay, as well as an astonishing R450 000 per month lease on an estate in Constantia.
These rentals certainly confirm the latest findings by PayProp’s rental index, which states that the Western Cape is now the most expensive province in South Africa to rent a house
Dogon Group Properties explain that on the Atlantic Seaboard, average monthly rentals range anywhere from between R20 000 to R45 000 for apartments, whilst the average family home achieves rentals of between R50 000 and R80 000 per month.
However rentals exceeding R150 000 are not uncommon. This figure has now been topped by this latest rental of R220 000.
In Cape Town’s increasingly popular southern suburbs, areas such as Bishopscourt, Newlands and Constantia, monthly rentals in the region of R100 000 and more have been reached for some luxury homes. “We have not yet had a rental rivalling this latest amount of R450 000 for this area – or in fact any other area in Cape Town and this is indeed a record for us, if not a record in South Africa,” says Dogon.
According to Dogon these high-end rentals are driven somewhat through the weaker rand affording good value to foreigners and ex-pats looking to stay in Cape Town
“The influx of ultra-wealthy business people and families from provinces such as Gauteng has also aided the Cape rental market as these ex-Gauteng residents often rent before buying.”
Dogon go on to advise that the current recessionary conditions have also fuelled the rental market for these luxury homes. “Whilst a rental figure of R220 000 may seem extravagant it is only half of what a bond would be on a R44 million rand property – for example – and tenants don’t then incur the additional costs of monthly rates and taxes, maintenance, etc. Whilst we weather South Africa’s political upheavals and economic uncertainty, many ultra-wealthy would-be buyers are opting to rather rent in the interim until the uncertainty levels out.”
“Short-term rentals are also doing well in Cape Town and we have been contacted by several internationally acclaimed celebrities, as well as ultra-high net worth individuals from Europe and the USA, to secure them suitable rentals for the upcoming season,” concludes Dogon.
For further information visit //www.dogongroup.com