The PayProp Rental Index for Q3 2024 has unveiled a snapshot of South Africa’s rental landscape, highlighting a marked differentiation in average rental prices across the nine provinces.
Image: Freepik
The Western Cape is still the most expensive province to rent in, followed by the Northern Cape and then the KwaZulu-Natal.
On the other hand, the North West has the lowest average rental price.
The PayProp Rental Index Q3 2024 has revealed the average cost to rent in the nine provinces in South Africa, from the highest to lowest rental prices.
In Q4 2023, the average rent in the Western Cape passed R10,000 for the first time and now it could be on track to reach R11,000 by the end of this year, according to index.
The average rent in the Western Cape was R10,875 in Q3 2024, R900 higher than the previous year
Rental growth was recorded at 9.3% for Q3 2024. Growth in the Western Cape has now been the highest in the country for two straight quarters.
The Northern Cape has the second most expensive rent in South Africa, sitting at an average of R9,438 in Q3 2024.
The province experienced growth of just 1.9% for Q3 which is lower than the 2.1% in Q2. The Northern Cape is still the second slowest in the country for rental growth.
The average rent in KwaZulu-Natal broke the R9,000 barrier to reach R9,010 despite landlords and agents in the province having an awful start to 2024.
In Q3 2024, rental growth in the province accelerated to 3% which is lower than the national average of 4.8% and the third lowest in the country.
In Gauteng, the average rent reached R9,047 in Q3 2024 which is R270 more than the previous year, making it the third highest in South Africa.
Gauteng experienced rental growth of 3.1% year-on-year, down from 3.8% in the previous quarter.
The average rent in Mpumalanga now sits at R8,458 which is below the national average, and R26 lower than in the previous quarter.
Rental growth in Mpumalanga for Q3 2024 was 0.7% year-on-year, the lowest in South Africa.
The average rent in Limpopo for Q3 2024 was R8,372, the sixth highest in South Africa. The province recorded consecutive quarter of above-average year-on-year rental growth and the biggest quarter-on-quarter growth this year to reach 8.4%.
In the Eastern Cape, the average rent was R7,110 which is R311 more than it was a year ago, but R3 lower than last quarter.
Rental growth in the province dropped below the national average for the first time since Q4 2022, to sit at 4.6% year on year.
The average Free State rent is R6,776 which is still more than R2,000 short of the national average.
The province continues to have the second lowest rent in South Africa and with a gap of more than R300 between it and the Eastern Cape.
Rent in the province remains the lowest in South Africa with an average of R6,439, more than R2,400 below the national average.
Rental growth in the North West was 6.9% in Q3, a slight increase from the 6.3% recorded in Q2.
The rental growth in this province was the third highest in the country, and the average rent has increased by more than R400 since the same quarter last year.
IOL Property
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