As of 30th September 2013 the national average rental value stands at R5757 as calculated by Payprop rental index. This is a remarkable improvement since last year when it was just over R5200. Demand for rental properties continue, unabated, making property investment still one of the more attractive investment options.
In Woodstock we experienced healthy growth in the rental market, achieving rates of R5000pm for one bedroomed apartments and Salt River climbing as high as R5700pm for the standard 2 bedroomed semi-detached houses. These rates have increased in excess of 20% over the last year. It is our opinion that this trend is not sustainable and will most likely level off in the near future.
The winner, however, goes to the Northern Cape, recording a phenomenal 19.94% growth, showing just how fast things can change.
According to Payprop the category between R2500-R5000 experienced a bit of stagnation, while the R5000-R7500 showed the fastest growth. The 2nd fastest being between R7500-R10000 while the R10000 + category showing limited gains.
An extract from TPN Q2 report: Nationally 71% of tenants paid their rent on time and in full, 4% during the Grace Period, and 11% are in the Paid Late bracket. The combined result is 86% of tenants are in Good Standing – a fact worth repeating, as the highest in 5 years – with another equally pleasing feature of Q2 indicating that tenants in the Did not Pay category are down to a mere 6%.
When comparing rental growth rates of Woodstock and its surrounding neighbourhoods, it has clearly out-performed the national average growth rates.
These same properties have been selling a year ago at around the R500000 mark, and recently this has grown by 10 and 20 percent respectively. This would represent a very competitve return for most property investors.
Generally all round very encouraging news...unless you are the tenant, in which case this trend should become a serious consideration into your future.
This is the first of our newsletters through which we intend communicating vital information to you to aid in making informed decisions...it is after all one of the reasons we exist.
Please feel free to address any queries you may have through this channel and we will endeavour to provide practical and realistic advice