Gross rental yields in South Africa: Cape Town and 5 other cities
Last Updated: Sep. 5, 2023 | |||
JOHANNESBURG - Apartments | COST ($) | YIELD (p.a.) | |
TO BUY | MONTHLY RENT | ||
Sandton | |||
Studio | $37,915 | $464 | 14.69% |
1-Bedroom | $45,105 | $438 | 11.65% |
2-Bedroom | $68,931 | $663 | 11.54% |
3-Bedroom | $106,077 | $849 | 9.60% |
Johannesburg CBD | |||
1-Bedroom | $22,818 | $197 | 10.36% |
2-Bedroom | $34,227 | $263 | 9.22% |
Bedfordview | |||
1-Bedroom | $36,084 | $478 | 15.90% |
2-Bedroom | $61,025 | $531 | 10.44% |
3-Bedroom | $95,464 | $1,008 | 12.67% |
Randburg | |||
1-Bedroom | $32,370 | $337 | 12.49% |
2-Bedroom | $41,391 | $398 | 11.54% |
3-Bedroom | $66,331 | $584 | 10.57% |
Johannesburg avg. Rental Yields | 11.72% | ||
CAPE TOWN - Apartments | COST ($) | YIELD (p.a.) | |
TO BUY | MONTHLY RENT | ||
Cape Town City Bowl | |||
Studio | $87,557 | $512 | 7.02% |
1-Bedroom | $103,742 | $637 | 7.37% |
2-Bedroom | $116,743 | $645 | 6.63% |
Atlantic Seaboard | |||
1-Bedroom | $137,969 | $796 | 6.92% |
2-Bedroom | $262,672 | $1,247 | 5.70% |
3-Bedroom | $504,118 | $2,123 | 5.05% |
Southern Suburbs | |||
1-Bedroom | $68,719 | $398 | 6.95% |
2-Bedroom | $92,864 | $610 | 7.88% |
Milnerton | |||
1-Bedroom | $67,101 | $478 | 8.55% |
2-Bedroom | $87,557 | $604 | 8.28% |
Bellville | |||
1-Bedroom | $37,410 | $371 | 11.90% |
2-Bedroom | $67,340 | $451 | 8.04% |
Cape Town avg. Rental Yields | 7.52% | ||
DURBAN - Apartments | COST ($) | YIELD (p.a.) | |
TO BUY | MONTHLY RENT | ||
Umhlanga | |||
1-Bedroom | $67,658 | $531 | 9.42% |
2-Bedroom | $127,091 | $716 | 6.76% |
3-Bedroom | $212,260 | $1,274 | 7.20% |
Durban Central | |||
1-Bedroom | $25,896 | $265 | 12.28% |
2-Bedroom | $36,880 | $337 | 10.97% |
Amanzimtoti | |||
1-Bedroom | $36,084 | $345 | 11.47% |
2-Bedroom | $48,555 | $414 | 10.23% |
3-Bedroom | $74,238 | $642 | 10.38% |
Pinetown | |||
1-Bedroom | $31,574 | $308 | 11.71% |
2-Bedroom | $37,092 | $371 | 12.00% |
Durban avg. Rental Yields | 10.24% | ||
CENTURION - Apartments | COST ($) | YIELD (p.a.) | |
TO BUY | MONTHLY RENT | ||
Centurion (all locations) | |||
1-Bedroom | $31,441 | $324 | 12.37% |
2-Bedroom | $41,921 | $356 | 10.19% |
3-Bedroom | $75,352 | $610 | 9.71% |
Centurion avg. Rental Yields | 10.76% | ||
KZN SOUTH COAST - Apartments | COST ($) | YIELD (p.a.) | |
TO BUY | MONTHLY RENT | ||
KZN South Coast (all locations) | |||
1-Bedroom | $29,186 | $265 | 10.90% |
2-Bedroom | $42,452 | $364 | 10.29% |
3-Bedroom | $63,678 | $462 | 8.71% |
KZN South Coast avg. Rental Yields | 9.96% | ||
DOLPHIN COAST - Apartments | COST ($) | YIELD (p.a.) | |
TO BUY | MONTHLY RENT | ||
Ilembe | |||
1-Bedroom | $58,372 | $451 | 9.27% |
2-Bedroom | $91,272 | $663 | 8.72% |
3-Bedroom | $155,215 | $876 | 6.77% |
Dolphin Coast avg. Rental Yields | 8.25% | ||
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower. Source: Global Property Guide and Gumtree |
Research Methodology: To conduct this research, we searched for studio, 1-bedroom, 2-bedroom, 3-bedroom, and 4-bedroom apartments in South Africa. We used the local real estate listing website for both buying and renting prices to determine the average gross rental yields (Monthly Rent x 12 / Purchase Price).
For instance, if the monthly rent is $500 and the purchase price is $100,000, the calculation would be: $500 (Monthly Rent) x 12 / $100,000 (Purchase Price) = 6% (Gross Rental Yield).