Joburg’s rental boom – what you can get for R6,000 vs R65,000

2 years ago 1

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More residents in Johannesburg are choosing to rent amid the current dire economic climate, with Tyson Properties’ Johannesburg seeing its rental book growing by 100% over the past six months.

Chris Tyson, the chairperson of Tyson Properties, added that it expects rentals to grow by another 100% over the next year.

“Current economic constraints are impacting first-time and middle-market buyers, making it difficult to enter and remain in the property market. Many are choosing to rent whilst they ride out this period of uncertainty. Those who are budget conscious are opting for a fixed rental cost rather than a fluctuating bond repayment,” Tyson said.

Tyson Properties’ Johannesburg director, Francois du Toit, said there is still a relatively large number of rentals in secure complexes being the most popular.

Sharon Kayise, Tyson Properties’ rental agent in Johannesburg, added that the high-interest rates, inflation and energy costs have left many residents with no choice but to rent.

However, flexibility is a positive for some people, especially those in their twenties, as it allows them to move with their jobs.

Empty nesters are also selling up and renting while deciding how to retire.

Moreover, according to recent data from TPN Credit Bureau, tenants prioritise their rental payments despite economic challenges, which is a positive for landlords.

The number of tenants in good standing also increased from 80.78 % in Q1 2022 to 82.22% in Q2 2022, with researchers expecting it to grow in 2023.

Kayise added that there is still a hangover from the economic impact of the Covid-19 pandemic, which has been compounded by current load shedding and high fuel prices – turning people to the rental market.

She added that the current economic climate presents an opportunity for the invest-to-let market, which is growing to keep pace with demand.

“This is a good investor buyer market because some homeowners are under pressure. There is an uptick in investor properties, and this trend will continue,” she noted.

She said that investors should look at properties under R1.5 million.

“The lower the property price, the better the return for the landlord/investor. There are more tenants in this price range, and it is easier to sell this sort of home down the line.”

There is also a wide variety of properties on the market, from lifestyle estates in the suburbs to apartments, and prices range from R6,500 to R55,000 a month.

She added that the central location is better as gyms, restaurants, and entertainment are usually nearby.

She said that investors should prioritise tenants with good track records and stressed that landlords must account for every expense to understand how to acquire income.

Here are some rental properties on the market that Johannesburg renters can buy: