The demand for residential rental accommodation in central Rosebank is currently outstripping supply. This is according to Chris Renecle, MD of Renprop, who notes that this unmatched demand is for both short and long stay leases as well as furnished and unfurnished apartments.
“As a result, rental prices are increasing too,” he says. The Vantage - Renprop’s first residential apartment development in the area, undertaken in partnership with Grapnel Property Group – is a case in point. The Vantage is now fully occupied, and as a result, the rental prices have increased.
The average monthly rental price for a two-bedroom, two-bathroom apartment at The Vantage currently sits at around the R18 000 mark. “This means that purchasers at The Vantage who are renting out their units are achieving a gross yield of between 9%-10%, which is excellent for residential rentals,” says Renecle.
Owners at The Tyrwhitt, which is the second Renprop and Grapnel Property Group development in the area, are also expected to achieve excellent rental returns based on the current high level of demand.
Renecle says investors in the node are seeing great returns on one and two-bedroom apartments, both in rental yields as well as capital growth. “Around 16% of the units at The Vantage have been resold at prices of up to 30% more than the original launch price,” he says.
There are only a select number of units still available at The Tyrwhitt, which Renecle says offers the best value for money in Rosebank with apartments priced at around
R35 000/square metre. The Tyrwhitt consists of mainly one- and two-bedroom configurations in line with investor demand.
Renecle believes that the strong demand for residential accommodation in Rosebank is due to its growing commercial district as well as its excellent position between the Johannesburg and Sandton CBD. Rosebank also boasts a wide range of amenities as well as public transport. “The Gautrain station is within walking distance of The Vantage and The Tyrwhitt as are the numerous shopping centres, restaurants and coffee shops,” says Renecle. “The tree-lined avenues and dedicated pedestrian walkways give Rosebank a village-like feel in the heart of a cosmopolitan metropolis.”
Renecle expects the strong demand for residential accommodation, particularly rental accommodation, in the area to continue for the foreseeable future.