Affordable rentals and lucrative buy-to-let opportunities in Akasia
Category Property News
Akasia is a prominent residential suburb that is situated in the far north-west of Pretoria and forms part of the Tshwane Metropolitan Municipality. It epitomises suburban living, characterised by tree-lined streets, beautiful garden homes and modern sectional-titles. Although it is popular among home buyers, the rental market is gaining traction as many people are opting to rent homes instead of buying.
This has opened up a world of possibilities in the rental market as supply is steadily increasing to meet the rising rental demand. What we are witnessing in Akasia is a growing number of small-scale investors purchasing buy-to-let homes, particularly in secure apartments, duplexes and complexes, and estates.
Rental Prices
Akasia is made up of a number of suburbs, including Chantelle, The Orchards, Karenpark, Amandasig, Theresa Park, Rosslyn, Ninapark, Clarina and Hesteapark.
Each suburb has its own set of unique features, however, a common thread among them is the affordability factor. In fact, it is one of the most affordable areas in Pretoria and this aspect is the primary driver of rental growth. For example, rental prices can start from as little as R5000pm for a 2 bedroom apartment or R10 000pm for a 4 bedroom home in an estate. This is in stark contrast to neighbouring areas such as Pretoria East where prices of two to three bedroom apartments can start from R12 000pm to R15 000pm.
The low rental prices are attracting first-time buyers, and young couples and professionals. However, it is important to keep in mind that although Akasia is affordable, the quality of the properties is not compromised. Homes with entry-level rental prices are still complete with high-end security measures, modern features and state-of-the-art finishings.
Take Platinum Manor Security Estate situated in Chantelle as an example. The estate is comprised of two and three bedroom double-storey freestanding homes that range in size starting from 100sqm to 140sqm. The homes have private gardens, are tiled throughout, and the kitchen is complete with built-ins and a granite top. Security is of top priority and this is facilitated through armed response, guards on duty at the gates, electric fencing and CCTV cameras. Here, you can secure a spacious three bedroom unit for just R8 500pm.
House-Price Growth
Recent research released by FNB indicate that the suburb is experiencing stable price growth, even amid challenging economic times. FNB property strategist, John Loos, when interviewed by BusinessTech, revealed some favourable findings relating to Akasia.
He explained that cumulative house price growth in the suburb saw a 7.02% year-on-year price growth, placing it as one of the top performing suburbs in the Tshwane municipality alongside Pretoria West and Pretoria North.
Ultimately, the research shows that more affordable suburbs are outperforming higher priced ones such as Pretoria East and Pretoria South East, which saw a lowly year-on-year house price growth of 1.81% and a negative -1.57% respectively.
Akasia is on an upward trajectory with the value of homes climbing. The active market, which is defined by a high demand for both rental and buy-to-let homes will see this growth continue into the future. However, Akasia will still manage to retain a competitively priced market as homes will remain affordable when compared to surrounding areas.
Author: CSi Property Group
