Rental growth will continue to be under pressure post-lockdown as millions of South Africans are expected to lose their jobs or have their incomes reduced.
However, if consumers put off buying property due to increased uncertainty and a still weak economy, increased demand for rental properties might cushion the blow, says Johette Smuts, head of data and analytics at PayProp SA.
Compared to December, rental growth rates in the first three months of this year dropped, states the first PayProp Rental Index for 2020.
Rental growth for March was 2.9%, the lowest for the first quarter. The average national rent came in at R7 786 over the first quarter – up 3.2% year-on-year from Q1 2019.
This figure was at its second lowest since the start of 2018, and with the market uncertainty, PayProp predicts lower growth rates over the coming months.
The Western Cape still has the highest average rent at R9 171, while tenants can still find the cheapest homes to rent in North West, at an average of R5 222.
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