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Rentals over R12000 show highest vacancy rate

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TPN’s Q2 Vacancy Survey reveals that properties in the upper rental value – above R12 000 a month, continue to record the highest vacancy rate at 11.3%.

This is followed by the lower end of the market – rentals below R3 000 a month, at 10.9%. “The R4 500 to R7 000 property segment is performing best with a Vacancy Rate of 8.4%, followed closely by the R7 000 to R12 000 segment at 8.6%,” says TPN’s Michelle Dickens.

In the Western Cape vacancies rose to 8% from 6.2% the previous quarter. The market strength index also deteriorated from 46.3 to 43.5.

“The Atlantic Seaboard recorded the highest vacancies in the province at 17.3%. This is driven by a severely poor Market Strength Index of 38.9.”

Cape Town central, and the Northern and Southern Suburbs recorded rates of 8.7%, 7.1%, and 9.2% respectively. The Winelands proved the most attractive with a vacancy rate of 4.8%.

“It would be important to also note that Stellenbosch recorded the best good standing in the country with 93% of tenants paid up in the lockdown period of April and May 2020,” Dickens says.

“KwaZulu-Natal enjoyed lower vacancies of 5.9% and 6.1% the previous two quarters, but recorded a rate of 9.4% in Q2 and a Market Strength Index of 46.5.

“eThekwini is one of the only regions with less vacancies quarter-on-quarter, improving from 10% to 8%,” Dickens says. She adds that the North Coast and Pietermaritzburg pushed into double digit vacancies with 10.5% and 11.8% respectively.

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