High-end rental market on Cape Town's Atlantic Seaboard continues to thrive

The long-term rental of properties along the Atlantic Seaboard is flourishing and has continued to strengthen in recent months, according to Odette Maartens, the rental manager of DG Properties, which specialises in the area. Maartens says that during the past few months the company's rental department has been inundated with requests for accommodation of six months or more from high-income clients. "Among the contracts recently signed was a R130 000 per month lease for a huge luxury home, with the full amount of R2,2-million paid upfront." The long-term contracts have also included a R54 000 per month lease for a four-bedroomed house in Bantry Bay; a R50 000 per month lease for a four-bedroomed Fresnaye home; R33 000 per month for a four-bedroomed home in Llandudno; and R33 000 per month for a two-bedroomed apartment in the Marina development at the V&A Waterfront. Other rentals secured in Bantry Bay have ranged from R25 000 per month for a two-bedroomed apartment to R40 000 for a four-bedroomed home, and those in Fresnaye have included R40 000 for a four-bedroomed home. At the V&A Marina, two one-bedroomed apartments were let for R23 000 per month each. Maartens says the rentals achieved along the Atlantic Seaboard are considerably higher than in most other areas in Cape Town - or, indeed, in South Africa - and these have increased dramatically. "In the past few months, we've had numerous enquiries about rental properties in the R30 000 to R40 000 per month price range, and any stock in that range is quickly snapped up." The average rental for a one-bedroom apartment in the area would range from about R8 000; R12 000 to R15 000 for a two-bedroom apartment; and R15 000 to R30 000 for a three-bedroomed home, rising to R100 000 or more for a four-bedroomed home in Clifton, Bantry Bay or Fresnaye," she says. "These three areas generally attract the highest rentals, as they are wind-free and offer magnificent ocean views. Camps Bay and Llandudno are also particularly popular, as they are close to the beach." Security and privacy are at the top of high-income tenants' list of requirements, she says. "Newly-renovated, modern properties, with modern furniture and fittings and state-the-art kitchen appliances, rim-flow pools, large deck/entertainment areas, and amazing views of the ocean and mountains are also in demand. Live-in domestic help is a plus." Maartens attributes the flood of enquiries to the fact that the Atlantic Seaboard - which she describes as "one of the safest, most central and exclusive areas in Cape Town" - is home to many trendy restaurants, bars, beaches and shops, and offers a sophisticated, cosmopolitan lifestyle. The greatest demand for long-term rentals come from parents of students, high-powered professionals or families who are relocating from Johannesburg and Durban, and corporate clients seeking accommodation for foreigners that they have contracted to work in Cape Town for a year or two, she says. "Some properties are also being rented by tenants who first want to 'test' the lifestyle, job and investment opportunities that Cape Town and the Atlantic Seaboard area have to offer before making a long-term commitment to buy here," she says. "Others are opting to lease properties that have a higher value than those they can presently afford to purchase, until they are able to buy their dream home." She adds that although top-end properties are expensive and it has become harder for some prospective buyers to raise bonds, Dogon Group Properties' residential sales division has continued to do extremely well, and has sold several very high-priced properties this year, including a R60-million home this month. While the company's focus is predominantly on the Atlantic Seaboard, in recent years the rentals department has had many requests for properties in all areas of Cape Town, including the prestigious Constantia and Bishopscourt areas, and even Franschhoek, and now carries stock for both short- and long-term letting in these areas, she says. Short-term rentals and holiday lets achieved along the Atlantic Seaboard for the 2010/2011 summer season range from R10 500 per day for a three-bedroomed apartment in Camps Bay to R18 000 per day for a five-bedroomed bungalow in Glen Beach. Requests for short-term rentals come from high-budget visitors, including celebrities, who come to Cape Town during the peak season. "Only the best and most expensive villas will do, and we arrange for private chefs, chauffeurs, luxury car rentals and nannies for tenants' children," she says. Maartens adds that the 2010 FIFA World Cup gave South Africa great exposure, and the company has had "lots of enquiries and positive responses from overseas visitors since then." DG Rentals has accumulated more stock for short- and long-term rentals as many South Africans bought second and third properties - especially apartments - expressly for the purpose of letting them out during the World Cup, she says. "I believe the real benefits of the event are yet to come - when foreign nationals have had enough time to plan and budget for holidays in South Africa." For more information, contact Odette Maartens on 021 433 2580, or visit dogongroup.com