Township market rental rates are showing steady increases, even outperforming other suburbs in recent years.
It is not only property values to have been steadily growing in the country’s township areas, but also some of their rental rates. In Gugulethu, for example, TPN statistics show the average monthly rental in 2014 was R6198, but climbed to R8166 last year (up 29%).
After seeing a decline in rental rates in 2015 and 2016, Khayelitsha saw monthly rentals increase by 13.8% over 2017 and 2018. The average monthly rental last year was R5020. Mitchell’s Plain saw a 16.9% average rental increase from 2014 to 2018, when it was recorded by TPN to be about R5500.
Average rentals have, however grown faster in some other Cape Town suburbs, the data shows.
According to TPN these increase between 2014 and 2018 are:
- Camps Bay: 130% from R10681 to R29012
- Claremont: 37.8% from R6696 to R9546
- Durbanville: 26% from R6060 to R9102
- Tamboerskloof 16.5% from R10118 to R11861.
Yet while the five-year rental average of township properties has not always been superior to traditional Cape Town suburbs, increases from 2017 to 2018 show they have outperformed some.
Khayelitsha for example, saw a 7.5% increase in this period, beating even Camps Bay’s growth of 7.1%, TPN says.
Other Cape town suburbs saw average rental growth rates of:
- Claremont: 5.2%
- Durbanville: 5%
- Tamboerskloof: -3.1%
- Schotschekloof: -40.1%