A survey of 15 Western Cape coastal franchises in the Rawson Properties Group has shown that:
· the holiday letting market in the Cape is still extremely active and profitable and has not been influenced by recent interest hikes.
· the holiday season at the Cape is being extended to take in periods that were formerly considered part of the working year. Rawson franchisee, Piet Louw of Hermanus, reports that visitors are arriving at the Cape earlier or postponing their stays until after the main December / January rush. This is, he says, probably because holidaymakers now have less disposable income as a result of the interest rate hikes and dislike the rates charged during peak holiday periods.
Among Capetonians, the survey reveals that in many sought-after areas there is a discernible swing towards renting rather than buying.
Sarah Joseph, Manager of Rawsons Blaauwberg office, said that in many areas rentals are still only approximately half the monthly bond repayments on the property. It makes good sense, she said, for Blaauwberg residents to rent if they wish to maintain an affluent lifestyle 'with luxury trimmings' rather than pay high bond repayments.
Conversely, certain areas, particularly the Garden Route and, again the Atlantic Seaboard, are now able to command quite exceptionally high rentals.
At the V & A Waterfront, a R4 million apartment, says Greenpoint franchisee Jacques Theron, can easily rent out at R30,000 per month '“ a good return on the investment. Short-term V & A rentals can be even more remunerative.
On the Garden Route, says Willie Siepker of Rawsons Great Brak franchise, it has now become a regular habit for certain families to move out of their homes into a caravan park for the holiday season because rentals here for an average two or three bedroom home are usually more than R1,000 per day.
'In any survey of this kind,' said Bill Rawson, Chairman of Rawson Properties, 'there is a tendency for interviewees to stress mainly the positive aspects. Despite this, the October sales figures and the reports from our franchisees for November indicate that the Cape is experiencing a mini-boom and that both buyers and renters are on the increase."
