South Africa’s year-on-year rental growth rate declined from Q1 to Q2 in all provinces except North West and Northern Cape.
Three provinces, Limpopo, KwaZulu- Natal and the Western Cape experienced negative year-on-year rental growth in Q2 with rental properties cheaper than they were in the same period during 2019.
According to PayProp rental index for Q2 2020, the Western Cape is still the province with the most expensive rental accommodation, but KwaZulu- Natal has given up its second place spot to Gauteng.
The average rent in the Western Cape is R9.022 down from R9,025 a year ago. It is still the only province where the average rent is more than R9,000 a month. KwaZulu-Natal has moved to fourth place with rent of R8,037 per month due to negative growth of 1.6% over the year.
Gauteng is now in second spot with rent of R8,344 per month, followed by North Cape with R8,081. The Eastern Cape crossed the R6,000-mark in Q4 2019 and now has an average rent of R6,05.
The North West is the only province with an average rent below R6,000 at R5,235. Limpopo rent levels crossed the R7,000 mark, but in the wrong direction, with rent levels decreasing from R7,227 in Q2 2019 to R6,962 in Q2 2020, a decrease of 3.7%.
The Free State’s average rent is at R6,455, an increase from last year’s R6,166. Mpumalanga increased to R7,463 from R7,381 in Q2 2019.
