Numerous South Africans rent property all over the country. For some people, it’s the only way to keep a roof over their head. For others, it’s a simple way to live closer to places of work or urban areas. With the rising cost of living, South Africa’s average rental prices have continued to soar.
According to a Rental Monitor report released by credit bureau TPN on 31 January 2017, rental payments are a priority payment for the majority of South African tenants. Tenants are also more inclined to default on short-term credit, unsecured and secured credit, or other credit facilities before defaulting on rent.
More about South Africa’s average rental prices:
The research also found that in the first and second quarters of 2016, rent in the Western Cape was the most expensive.
In addition to this finding, whereas the average rent nationally for the first quarter of 2016 was R6076.44, rent in the Western Cape cost R7090.71.
The third quarter of 2016 revealed that rent in the Western Cape cost R7463.04, while the national average was R6172.80.
Average rental prices by province found that the Western Cape leads the pack, followed by Gauteng, KwaZulu-Natal, Eastern Cape, Northern Cape, Mpumalanga, Free State, Limpopo and North West.
The results were collected over a 12 months period and are based on the full credit profile of every active tenant every month.
The findings of the research seem to be consistent with a statement by Property 24 that “rental accommodation in close proximity to established urban infrastructure, transport, schools, Universities and so on will remain in high demand”. The Western Cape, Gauteng and KwaZulu-Natal are considered the economic hubs of South Africa, with large populations.
Even though average rental prices in the Western Cape are significantly higher than those in other provinces, Western Cape rent payers also manage to pay their rent on time more often than any other province in the country.