South Africa’s rental property market is flourishing, driven by strong demand that has led to low vacancy rates.
At the beginning of 2024, TPN’s Vacancy Survey Report provided valuable insights into the rental landscape. This survey encompassed both full-title and sectional-title properties, showcasing the overall dynamics of the sector. An increase in households opting to rent has been observed, while the appeal of homeownership continues to decline.
During the first three months of 2024, the national residential vacancy rate fell to its lowest level since TPN began its survey in 2016, reaching just 4.42%, a drop from 6.69% in the previous quarter. This imbalance between supply and demand has pushed the rental market significantly above equilibrium.
According to TPN’s data, the Western Cape and Gauteng are identified as the prime regions for landlords and investors. The trend of preferring rentals over homeownership is anticipated to continue into the second quarter of 2024, especially amid high-interest rates.