Cape Town’s Northern Suburbs are grappling with a rental market squeeze as soaring demand in Durbanville, Bellville and Brackenfell drives up prices and depletes available housing stock.
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According to Bizcommunity, managing director of Alexander Swart Property group, Rowan Alexander, the rental stock shortage has created a highly competitive market.
‘Agents are reporting multiple applications for each property, often on the day of listing, with potential tenants even offering above the asking rental price to secure a desirable property.’
‘This spike in demand has also precipitated new development, especially in the Durbanville area where there are still available tracts of land.’
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Alexander highlights the rental market’s strength and growth, evidenced by his firm’s rapid success at Wheatfields Estate in Groot Phesantekraal, where landlords saw returns of 8.2% in the first year and 9.1% in the second.
‘Additionally, property owners at the estate are also enjoying capital appreciation of around 8.5% per annum which is a respectable return in any market and, with properties accessibly priced between R3m and R4m, it’s an affordable and lucrative option for most investors.’
‘And, as 40% of the buyers in the first phase are investment purchasers, they will already be confident that they have invested in the right property and area.’
Wheatfields Estate, the first residential project at Groot Phesantekraal Estate, was launched by Rabie and Trinity in late 2021, comprising 152 homes, with around 110 already occupied.
‘There are only 12 unsold homes and a few still under construction but these are due to be completed within eight months. The next development in the precinct, Klein de Koning, is a pioneering project for the area and is due to be launched for sale off-plan this month.’
Klein de Koning features 48 contemporary apartments in a secure, gated enclave with lush gardens, communal entertainment areas, and a swimming pool. With 12 simplex and 36 duplex units, it offers a sophisticated, low-maintenance lifestyle ideal for the rental market.
Located in the scenic Durbanville wine region, Groot Phesantekraal is set to become a residential hot spot, integrating commercial, retail, and educational components into one privately managed precinct.
Amenities include the award-winning Curro Durbanville High School, the planned Stadio tertiary education campus (set to open by late 2025), and the Groot Phesantekraal Regional Shopping Centre (opening mid-2025).
Another drawcard is the precinct’s proximity to Winelands amenities, including wine estates, trails, and the soon-to-expand Cape Winelands Airport.
The rental boom in Cape Town’s Northern Suburbs is driven by migration to the Western Cape, affordable housing, proximity to business hubs like Tyger Valley and Century City, and attractive amenities that appeal to professionals and families.
‘Real estate investment remains one of the most stable investments, especially during challenging economic times when other investment options tend to be more volatile, and this is especially true for the Western Cape,’ says Alexander.
‘According to the latest TPN Rental Monitor report, the Cape continues to outperform other provinces in terms of rental payment performance, with 86.7% of tenants in good standing as of Q4 2023 (TPN Credit Bureau, 2024).
‘This high percentage of reliable tenants has made the region increasingly attractive to investors and landlords, which has been especially notable in Cape Town’s Northern Suburbs during the past two years.’
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Picture: Alexander Swart Property Group / Facebook