Real estate agents Seeff has published an overview of the current rental market in KwaZulu-Natal, including the increasingly popular Dolphin Coast.

Despite some challenges, the rental demand in many areas of KZN is robust, the group said. This is due to a combination of factors including the fact that many people can’t afford to buy property, new employment opportunities that have arisen, industries relocating to the KZN, the launch of major projects and semigration to the North Coast among others.

Below it provided an overview of the major areas in the province and how much it costs to rent a home.

North Coast

Ballito’s permanent population has more than doubled in just over a decade and this has created a big rental demand.

Seeff’s Mark Johnson said that even though the rental market is buoyant, stock is a major issue – especially with regard to property in gated communities priced from R8,000 to R18,000 per month.

The North Coast has also been earmarked for massive residential, commercial and resort development that will bring even more people to the area, he said.

“While we expect more stock to come onto the market in the medium term, rental demand is predicted to increase even further as a result of the growth.

“Families are semigrating to Ballito by the dozens – many of whom are still working elsewhere and need to commute to work weekly. This is made possible by the King Shaka International Airport about 20 minutes from Ballito.”

Queensburgh

While Queensburgh is experiencing rental demand for especially two and three-bedroom homes, apartments and duplexes in complexes priced between R5,500 and R8,000 per month, they have also witnessed a decline in rental demand due to affordability issues.

Seeff’s Michelle Vermeulen said with Queensburgh’s shortage of rental property, many landlords are trying to maximise their potential rental income by letting multiple homes and granny flats on the same property.

“Property located in security complexes is highly sought after especially in the price range from R5,500 to R8,500 per month. In general, a rental gets snapped up right away when it is priced fairly and represents good value for money.

“New residential development in the Queensburgh area will offer investment opportunities to buy-to-let investors and will alleviate the rental shortage.”

Berea

Seeff’s Roger Hoaten said that while they expect rental demand to continue rising in Berea, supply is expected to be constrained due to growing household debt.

Hoaten said that Berea offers many rental property options ranging from large free-standing, and art deco homes, to sectional title developments and affordable apartments.

“The rental price start from around R4,000 up to R25,000 per month, but the most demand and stock shortages occur for one and two-bedroom apartments in the R4,000 to R6,000 lower end of the market – in areas bordering the commercial zones of Berea and Glenwood,” he said.

Mid-South Coast

Seeff’s Joleen Giraudeau said the Mid-South Coast branches of Seeff cover Umkomaas to Pennington – a thriving coastal stretch also hosting Scottburgh which is one of the most popular holiday destinations on the KwaZulu Natal South Coast.

“The area boasts a large array of listings in different price brackets, starting from R3,500 per month up to R30,000 per month,” she said.

“We have stock to suit everyone from professional trainees on campus to contractors and engineers looking for a home away from home while on contract at one of the large factories.

Hibiscus Coast

Rental demand for properties in holiday areas along the Hibiscus Coast is also in high demand.

Giraudeau said that the average price ranges for rentals here start at around R2,500 per month for a one-bedroom flat in Hibberdene to R18,000 pm for a four-bedroom house in Umtentweni.

“The highest demand is for two and three-bedroom, pet-friendly apartments and complexes in the R5,000 to R9,000 per month price bracket and demand for free-standing homes priced between R8,000 to R10,000 per month is also high.”

Rentals in the large CBD areas are more affordable than the listings in the exclusive residential areas, Seeff said.

“People want to be near a CBD for work, but don’t necessarily want to live in these areas, as they are looking for a more relaxed and safer environment,” Giraudeau said.

Richards Bay

The rental landscape in Richards Bay has grown substantially over the years due to the influx of people finding job opportunities as well as those moving out of townships and settling in the urbanised areas.

In addition to the appealing coastal living, millennials and first-time renters have found Richards Bay the perfect place to start their property journeys.

Seeff’s Elaine Chetty said there is a continuous influx of people owing to better work opportunities.

“These clients choose to rent a property before considering buying. We have also seen a great demand for sectional titles in the area and 75% of the properties that we rent out are this property type – security being the primary reason and pricing an additional benefit.”

Rentals vary from R5,000 to R40,000 per month, depending on the tenants’ needs. A flatlet away from the CBD will attract a rental of around R5,000 a month, and two to three-bedroom sectional title units fetch monthly rentals of between R6,000 to R10,000.

A two to three-bedroom freestanding property will fetch R8,000 to R12,000 a month, depending on location and property offerings.

“The more upmarket townhouses and freestanding properties are being let for between R11,000 to R20,000 a month, while properties in the luxurious Waterfront achieve rentals of around R20,000 to R40,000 a month,” Chetty said.

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