Historically low rental vacancies in South Africa right now - TPN Vacancy Survey

Africa Melane speaks to Waldo Marcus of TPN about the latest TPN Vacancy Survey Report for Q3 2024.

Listen below.

The TPN Vacancy Survey Report for Q3 2024 reveals historically low vacancy rates in property markets across South Africa this quarter.

Marcus explains that this is partly attributed to:

• Tumultuous years of high interest rates might have held potential owners back from purchasing homes, thereby staying in the renters' market.
• Supply is under pressure because of construction costs.
• Rental escalations stayed relatively low compared to inflation.

Interest rates are coming down but consumers' debt remains high as does the cost of living. In other words, while property-buying is picking up, the recovery may be gradual, says Marcus. 

According to TPN's report, these were some notable insights:

• National residential rental vacancies fell to 5.07% in the third quarter of 2024, the lowest since the TPN Vacancy Survey started in 2016. Limited new supply and strong demand kept vacancies low in this quarter, with properties under R12,000 a month seeing notable improvements.
• The R7,000 to R12,000 rental band recorded the lowest vacancies at 3.4%, while luxury rentals faced increased pressure, with vacancies in properties over R25,000 surging to 12.03%.
• The Western Cape led with the lowest vacancy rate and strongest rental growth.
• Cautious investment and high interest rates continue to limit supply.
• First-time home ownership levels are also slowly recovering compared to COVID-19 times.

Click here to download the Vacancy Survey Report Q3 2024 for a comprehensive analysis of the trends shaping the residential rental market.

Scroll up to the audio player to listen to the interview.