The number of residential rental properties standing vacant increased from a low of 6.92% in the third quarter of 2022 to 8.13% in the fourth quarter of 2022, according to the latest vacancy survey released by the TPN Credit Bureau, which specialises in the property market.
Gauteng's vacancy rate was 10% at the end of 2022, well above the national average of 8.13%. In KwaZulu-Natal, the vacancy rate was 3.26% at the end of last year.
The Eastern Cape experienced its highest vacancy rate to date, at 17.82%. High unemployment in the province impacts affordability, according to the TPN report.
In the Western Cape, however, high demand and low supply led to the lowest vacancy level since 2016, namely 2.13%.
Waldo Marcus, head of marketing at TPN, says price remains the key consideration for prospective tenants.
Most tenants rent because they can't afford to buy and for the flexibility that renting provides, according to TPN's annual tenant survey. Asked what factors they consider when looking for a rental home, respondents said price was their biggest consideration (57%), followed by security (37%). Other considerations included pet-friendly properties, the size of the property, and distance from work.
In the high-end R25 000 a month rental market, security is the primary concern.
Prime rental properties – especially those offering an alternative energy source and a backup water supply – will continue to be in high demand, according to the TPN report.