Rental growth average increased by 0.5% to R7.819 in Q1 2021, from R7.786 in the first quarter of 2020.
Nationally, residential rents grew by R33, according to PayProp Rental Index.
Johette Smuts, PayProp head of data analytics, says rental growth had been under pressure since 2018 and long before Covid-19. Slow economic growth put pressure on tenants’ financials and an uptick in residential developments added to rental property supply.
Rental provincial statistics
The North West recorded the highest growth of 3.7%, followed by the Eastern Cape (3.2%), and Northern Cape (2.8%). Additionally, the North West has the lowest average rent of R5.414 compared to the high average of R9.142 in the Western Cape.
|Province||Average rent (R)||Rental growth (%)|
The report shows a decrease in the number of tenants in arrears following a spike during lockdown in 2020.
During the first quarter of 2020, 19.4% of all tenants were in arrears, and by Q2 2020, this figure rose to nearly 30%. This percentage came down to 20.3% by the first quarter of 2021, according to the report.
“It’s clear to us that South Africans are still in recovery from the financial implications of the pandemic and the lockdown”, says Smuts.
“Tenants who defaulted on their rent in 2020 are having to pay their full rent each month. Furthermore, they have to pay an additional sum towards their outstanding balance, and it’s not easy in the current economic climate.”
Edited by Gudrun Kaiser