TPN predicts negative rental escalation as a climb in vacancies forces landlords to negotiate decreased rentals.

The numbers are exploding and not all in the right direction!

Income, or rather the lack thereof, has been a major contributor to tenants’ early cancellation of lease agreements, the drying up of demand in 2020, and pushing up of vacancies,.

Overall, landlords are left with a 12.91% vacancy rate to compete against. The encouraging news is that vacancy rates have started to recover in three of the four main provinces: Western Cape, Eastern Cape and KwaZulu-Natal but Gauteng continues to deteriorate with 14.66% vacancies in Q4 of 2020, pulling the national average up.

According to TPN VACANCY SURVEY REPORT: House to House subsrcribes to TPN

Since our area of focus is Randburg and Roodepoort, therefore we would like to share the Gauteng stats from TPN:

" Gauteng – the home of half of the South African tenants Yes, as reported in the latest General Household Survey, 47% of all tenants reside in Gauteng. These numbers are similarly reflected in the TPN tenant database. Sandton stands out with the highest vacancy rate of 22.4%, a deterioration of four percent quarter-on-quarter, but hardly unexpected as tenants continue to downscale looking for more affordable rentals. Soweto also noticeable at 18.6%, encouragingly flat from the previous quarter, tenants in the low earners and casual workers most affected by loss of earnings. Overall, all but one metro produced double digit vacancies, with only Ekurhuleni in single digits at 9.8%

Gauteng recovery hampered by deteriorating Demand Rating, dropping to 51, the lowest on record. And a shift in Supply Rating to 76, the highest on record. A gloomy outcome producing a Market Strength Index of 38, also the worst on record, pointing to a market of extreme excess supply. "

We at House to House can attest to this fact, that we currently having a  lo of vacanies, of various properties and price ranges accross the board (which was not the case previously, yes, supply is definately higher than demand!

The very truthfull conclusion of this outcomes from the TPN Survey is:

"Conclusion Shelter is the first of Maslow’s hierarchy of needs and security the second. Tenants agree, as reported in the recent TPN Tenant Survey where price was the number one factor and security the second most important factor for choosing where to rent. Residential property is an asset that will always have a market, but the market shifts. Today’s market requires a careful balancing of price, affordability, maintenance, security and rising municipal expenses. Careful planning and consistent management of these variables wins in the end"