South Africans who want to rent a property can expect to pay on average R8 654 a month, according to the latest rental property index.
According to PayProp Rental Index, the average rent for property in South Africa in the first quarter of 2024 is R301 more than the average rent for the same period last year.
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The rental index is a quarterly guide that outlines trends in the South African residential rental market, compiled using transactional data collected by PayProp.
The index also reveals the provinces with the highest and lowest rental prices in the country. The Western Cape has the highest average rent in SA at R10 300, which is R1 000 higher than the nearest competitor.
For Q1 2024, rental prices in the Western Cape increased by 4.3% year on year, outpacing the national average of 3.8%. The North-West province has the lowest average rental price, at R6 301. Despite having the lowest average rental prices in the country, the North West had 9.8% rental increase, the highest in the country.
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The Eastern Cape had the third-fastest rental growth of any province, despite a 5.6% year-on-year growth rate in Q1 2024, which was lower than the 7.3% recorded in Q4 2023.
The province’s average rent is now R7 021 – still the third lowest in South Africa, but R371 higher than a year ago.
In the Free State, the average rental price is R6 927 which is R579 more than Q12023. Rent climbed by 9.1% year-on-year in the province which is the second fastest in the country.
Rental growth in Gauteng is 3.5% in Q1 2024, which is lower than the national average of 3.8% and slightly lower than the 3.6% increase reported in the previous quarter.
The average rent price in Gauteng province was R8 943 in Q1 2024. Gauteng could soon become the third province to pass an average rent of R9 000.
In KwaZulu-Natal, the average rent cost is R8 770 for Q1 2024, which is less than the average rent cost for Q1 2023, which was R8 801. This indicates that rental growth decreased by 0.4%.
Despite being the third-most expensive province for renters until Q3 2023, the gap between KZN and the top three is increasing.
According to the index, Limpopo saw above-average rental growth in 2023, which continued into 2024, with a 4.8% increase in Q1.
The average rent in Limpopo hit R8 027, up R370 year on year, bringing the average rent above R8 000 for the first time.
Mpumalanga likewise saw above-average rental growth in 2023, with a 6.1% increase in Q4 2023; however, rental growth fell to 1.2% in Q1 2024.
Mpumalanga is the country’s seventh most costly rent, with an average of R8 369.
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Picture: Murray Swart