Vacancy rates at the height of the pandemic were over 13% during December 2020 and in the first half of 2021. However, they dropped to 10.66% in the third quarter of 2021, said TPN Credit Bureau.
“The ban on travel to South Africa negatively impacted on short term rentals in December 2020, some of which are likely to be converted into long term rentals in 2022.” Although the lifting of the three-week ban on international travel to South Africa in mid-December was a welcome relief to the tourism industry, the disruption to their businesses in what is usually their busiest month with the highest occupancy rates will be devastating for some operators.
However, the supply of rental property in Gauteng remains stubbornly high with a supply rating of 74.77. “For Gauteng landlords, this translates to an oversupplied rental market with a market strength index of 41.22,” said Dickens. “Although this is an improvement from the 39.31 recorded in the third quarter of 2021, an over-supplied market means the vacancy rate remains high at 11.9%.”
“Western Cape landlords benefited from the improvement in tenant demand with the province’s vacancy rate declining from its high of 14.38% in the second quarter of 2021 to 11.4% in the fourth quarter of 2021.” A lack of property development leaves this province with a low supply rating of 53.17 coupled with a demand rating of 62.7, which translates into a market strength index of 54.76. High demand means lower vacancies of 8.2%.
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