Strong demand for rental properties in Durbanville and surrounds

The rental market in Bellville, Durbanville and Parow is experiencing strong growth, says Mariël Burger, area manager at Pam Golding Properties for Cape Town North.

“Some of the reasons for this include an influx of residents from other provinces to the Western Cape, and the area’s proximity to business hubs like Tyger Valley and Century City. Demand is outpacing supply, so the market has become more competitive, with resulting increased rentals and a shortage of rental stock.

“Significant numbers of people are moving to Bellville, Durbanville and Parow from other regions around South Africa. Many of these new arrivals are renting while they look for the right property to buy, which has definitely increased the demand for rental properties.”

According to the TPN Rental Market Strength Index the national residential vacancy rate has dropped to 4.42%. This is the lowest level since TPN began tracking this data in 2016, indicating that more people are seeking rental accommodation. This is particularly true in the Western Cape, where the vacancy rate is notably lower at 1.51%.

“The TPN index shows a score of 76.85 points for demand, which is significantly higher than the equilibrium point of 50. This increase suggests that demand is outpacing supply, which is crucial for landlords as it often leads to higher rental prices,” says Burger.

Burger adds that t enants in Bellville, Durbanville and Parow generally look for spacious properties that offer good value for money, and proximity to amenities is also important. Unfurnished properties are most in demand, although there’s also a market for furnished homes. Families and professionals tend to look for homes with two or more bedrooms. Houses and townhouses are particularly popular among families, whereas flats are often sought after by professionals who want smaller, more manageable living spaces.

“We also have a very high demand for pet-friendly properties – especially in the lower price ranges – but these are very hard to come by.”

Typically, northern suburbs tenants include:

• Young professionals, who want affordable housing close to their workplaces or educational institutions.
• Families looking for more space and better schools.
• Retirees, who prefer to rent in quieter neighbourhoods with easy access to amenities.

Popular rental areas in Bellville, Durbanville and Parow include Tyger Waterfront, Boston, De Tijger, Durbanville Central, Sonstraal Heights, The Crest and Vierlanden. These areas offer a good mix of affordability, access to business hubs and amenities, making them highly sought after by both families and professionals.

“Rental demand in Bellville, Durbanville and Parow is strong across various price ranges, but the most competitive price range is from R16 000 to R26 000 a month. Properties in this range are in high demand due to the area’s appeal to both families and professionals,” says Burger.

In Durbanville Central and Vierlanden rentals range from R8 000 to R18 000 a month for smaller homes and apartments. For larger family homes rentals vary from R20 000 to R30 000 a month.

In Sonstraal Heights rentals range from R10 000 to R18 000 a month for standard family homes or townhouses. Rentals for premium homes or larger properties are around R20 000 a month and above.

Burger says the demand for rental properties in summer is typically higher than in the other months of the year as individuals and families often look for temporary accommodation or new homes at this time. This seasonal influx often results in heightened competition among prospective tenants, while the limited availability of new rental developments exacerbates the situation. With fewer new units coming onto the market, there is increased demand for existing properties, leading to reduced vacancies and potential rent increases. According to Lightstone data, the lack of new stock is a critical factor limiting supply in desirable areas.

Burger says there is land available for new developments in Durbanville and nearby areas, and developers are showing increased interest.

“This is due to the growing demand for housing and the potential for property value appreciation. For example, Durbanville has experienced steady growth in property values, which makes it an attractive option for new developments.

“Bellville, Durbanville and Parow are well-equipped with schools and amenities, making it a great area for families. However, with the increase in population, there could also be opportunities for developers to expand educational facilities and other amenities to meet the rising demand.”

In addition, he says, the City of Cape Town has approved plans to develop Bellville into its second central business district (CBD) . This will help accommodate the growing population in Bellville, Durbanville and Parow.

“There are plans to invest R43 billion in infrastructure in Cape Town over the next three years, which should also create a number of jobs in the area. With vacancy rates at historic lows and an optimistic outlook reflected in various indices, conditions are favourable for landlords to achieve higher rentals,” says Burger.

For further information contact Pam Golding Properties Northern Suburbs Rentals on +27 21 975 7209

Posted by The Know - Pam Golding Properties