Western Cape holds highest rental prices in South Africa since 2016 – PayProp data

Mike Wills interviews freelance journalist Nick Hedley.

Listen below.

The Western Cape has consistently had the highest rental prices in South Africa since 2016, according to PayProp data.

The average rent in the province now sits at R10,673, which is 21% higher than the national average.

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This gap continues to widen, with the second quarter of 2024 showing a 9.7% increase in Western Cape rents compared to the previous year.

PayProp also notes that rental inflation hit 11.7% in June, with the growth rate "appearing to accelerate."

Hedley attributes this trend to several factors:

• Well-maintained infrastructure, with clean and functional cities and towns.
• A post-Covid shift to remote work has drawn wealthy South Africans and foreigners to Cape Town.
• Booming tourism.
• A housing supply that hasn’t kept pace with rising demand stemming from semigration and inbound tourism.

"The more that Joburg and other major cities kind of fall apart, the greater the Cape's allure."

- Nick Hedley, freelance journalist

Overall, Hedley suggests it’s a great time to own property in the Cape and negotiate leases with tenants, but a challenging one for those looking to buy or rent.

Scroll up to the audio player to listen to the interview.