We've dropped over the edge!

The Western Cape was the first major region to move into rental deflation 2 quarters ago, with Gauteng following suit for the first time in the 4th quarter of 2020. As at Q4 2020, the Western Cape’s rental deflation measured -1.61% year-on-year while Gauteng’s rate of rental deflation was -1.7%.

By rental/month value bands, the “Less Than R3,000/month segment has the highest rental inflation at 1.03% year-on-year, while the value segment of R12,000+/month in the lowest negative territory to the tune of -2.15%.

The 2021 national budget delivered against the backdrop of a significant economic contraction in the second quarter of 2020, rising debt to GDP and South Africans in a weakened financial position together with the highest unemployment rate on record has led to the perfect storm.

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