It is now cheaper to rent a home in Gauteng and the Western Cape than a year ago – here are the average prices across SA
- Rental payment platform PayProp's numbers show it is now cheaper to rent in the Western Cape and Gauteng than a year ago.
- The average national rent declined by R59 in the first quarter of 2019.
- The Northern Cape, KwaZulu-Natal, and Free State are the only provinces that saw increases in the average cost of renting a home.
- For more stories, go to Business Insider South Africa.
The average rent charged in the Western Cape declined by R94 between the first quarter of 2018 and the first quarter of 2019, and by R64 in Gauteng, rental payment platform PayProp's numbers show.
This as Statistics South Africa on Tuesday announced that the country’s GDP declined by 3.2% in the same quarter.
Also read: SA’s economy is shrinking at an alarming rate – and only oranges and interest rates are offering hope
When PayProp’s Rental Index for the first quarter of 2019 is compared to its 2018 rental index, it shows that the average rent in South Africa stood at R7,551 a month in the first quarter of 2019, compared to R7,610 a year before, a R59 decline.
PayProp said most national rentals (31.7%) in the first quarter were in the R5,000 to R7,500 bracket; 22.3% in the R2,500 to R5,000 bracket, and 18.4% in the R7,500 to R10,000 bracket.
Rent in the Western Cape, the country’s most expensive rental province, stood at an average of R9,030 per month for the first quarter of 2019 compared to R9,124 in 2018.
The Western Cape is followed by Gauteng where the average rent is estimated to be R8,000 compared to R8,064 in 2018.
The Northern Cape saw the sharpest decline in average rent from R8,153 in 2018 to R7,817 in the first quarter of 2019 - a R336 decline.
Also read: These are the South African cities where salaries are high and rents are low – relatively
It is followed by KwaZulu-Natal where rent declined by R154 from R8,129 a month in 2018 to R7,975 in 2019.
The Free State is one of three provinces which saw an increase, with average monthly rentals increasing from R5,942 to R6,054.
Mpumalanga saw the second biggest increase, from R7,248 to R7,298.
Johette Smuts, data and analytics head at PayProp South Africa, expects the average national rent to increase in the next few months as uncertainty remains in the South African economy.
“Generally, uncertainty decreases consumer confidence, which could leave property buyers reluctant to commit in coming months, effectively dampening demand and putting downward pressure on prices,” Smuts said.
“Meanwhile, all these prospective buyers need to live somewhere, and they’ll most likely be forced to rent a property, thus increasing demand for rental properties and pushing up prices.”
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