InsightLifestyle

Cape Town’s year-round holiday vibe boosts rental demand

This luxury villa in Bantry Bay is an example of the type of high-end property favoured for holiday rentals.

Recently voted the World’s Best City by readers of The Telegraph, it comes as no surprise that Cape Town remains a firm favourite with those looking to rent a home – be it for a short-term holiday stay or for longer, says Dexter Leite, Pam Golding Properties rental manager for the Cape Metro region.

In line with early indications of a bumper 2019/2020 tourist season – the City of Cape Town says that forward bookings predict a 30% increase in visitors from the United Kingdom alone from December last year to March 2020 – the holiday rental market has been particularly busy over the festive period, says Leite. “Significantly improved dam levels, and the subsequent easing of water restrictions, has certainly led to renewed interest from overseas and local visitors wanting to spend time in Cape Town. In Constantia, as an example, we concluded a short-term let to the value of R400 000 during the December period.”

Camps Bay, renowned internationally for its vibrant, cosmopolitan beach strip packed with trendy restaurants and night spots, remains a firm favourite for holiday rentals, and in fact longer-term rentals throughout the year. Holiday rentals average between R30 000 and R36 000 a night for a Camps Bay villa, and Pam Golding Properties rented a number of short term properties to the value of R2 million, to one client over the festive season, says Janine Sullivan, Pam Golding Properties rental specialist for Camps Bay.

Most of the enquiries have been for villas with contemporary, luxurious finishes, fast internet connectivity and a swimming pool, adds Sullivan. Being within walking distance of the beach is an added bonus, and properties that are rented out are generally valued at between R15 million and R28 million, says Sullivan. “Camps Bay appeals because it really has everything – pristine beaches, upmarket restaurants and a host of outdoor activities. The beach is within easy walking distance and the popular V&A Waterfront is nearby. It is also an easy drive along the coast to Llandudno and Hout Bay,” says Sullivan.

Much of the interest for these properties are from overseas, particularly the United Kingdom, Germany and the United States. “Often, those opting for longer-term rentals, are visitors from overseas who want to spend more time in Cape Town, or employees of international corporations that have offices in the city. New-builds are especially sought after, and these rentals are usually in the R50 000 to R60 000 per month price range. With its enviable climate and spectacular beach and mountain views, living in Camps Bay feels like being on holiday, all year round,” says Sullivan.

“Notwithstanding the price adjustments, in response to current market conditions, taking place in the City Bowl, Southern Suburbs and Atlantic Seaboard, business has been brisk. Pam Golding Properties has recorded strong growth in most areas, with a robust demand for long-term rentals at market-related prices,” says Leite.

Further to the many rental deals concluded throughout the year, the Southern Suburbs recorded several noteworthy deals – including one for R75 000 and another for R80 000 a month.

Monthly rental agreements of between R55 000 and R60 000 were concluded in the City Bowl, while perennial favourite, the Atlantic Seaboard, concluded rental agreements of more than R100 000 – one at R143 000 and another for R108 000 a month. There’s been a strong demand for four and five bedroom rental properties in these areas, notes Leite. In the Southern Peninsula, the appeal of a country lifestyle has led to increased rental activity in Noordhoek. Fish Hoek and Glencairn particularly are favoured by families looking for value-for-money rental options, adds Leite, with Simon’s Town offering the sought-after coastal lifestyle.

It is imperative that rental properties, be it for short term holiday lets or longer-term leases, are priced correctly from the outset as overpriced properties draw little to no attention in a highly competitive market, concludes Leite. “Be guided by an experienced rental area specialist, with a sound track record with regard to pricing and all other relevant aspects.”

For more information, contact Dexter Leite, Pam Golding Properties rental manager for the Cape region: 021 6734200

Posted by Anel Lewis