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Average rent in Gauteng tops R9k: How do other provinces measure up?
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5 hours agoon
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SA LIVE NEWS
Everyone needs a place to call home, but for many South Africans, owning one is out of reach. Renting becomes the next best option, unless you are staying with your parents. Still, even renting comes at a high price. For most, rent consumes a significant portion of their salary.
According to the latest PayProp Rental Index, the average rent in Gauteng, South Africa’s land of opportunities, now sits at R9 201. But Gauteng is not even the most expensive province to rent in.
The province remains the country’s most populated, with the highest population driven by the hope of better opportunities, whether it is landing a job, launching a business, or starting a new life.
The Index’s findings are based on the first quarter of 2025, utilising transaction data from the R1.4 billion in rent that PayProp processes each month, along with credit scoring from Experian.
North West, home to Sun City, retained its position as the cheapest province to rent a place in, at R7 153, which is an increase of R852 compared to the previous year.
What is surprising is the share of tenants that are in arrears in the North West, as the percentage remains significantly high.
Two quarters ago, North West was the second-highest province in the country, with 22.9% of its tenants being in arrears. In this quarter, the province has 18.6% of tenants in arrears.
As expected, the Western Cape remains the most expensive province in which to rent a place. The Index highlights that the province has had the highest rents in the country during the first quarter of 2024, but only average rental growth, just as it has for the past several years.
“The province experienced the highest growth in South Africa in the second and third quarters, and reached double digits in the fourth quarter,” reads the Index.
It would cost you an average of R11 285 to rent a place in the Western Cape, which is R985 more than the previous year. Rent in the province is R1 704 more than the second most expensive province to rent in.
“13.7% of Western Cape tenants were in arrears in Q1 2025, 0.5% more than the previous quarter. Tenants in arrears owe 60.2% of the average rent, once again the lowest in SA and down by 0.7% from the previous quarter.”
ALSO READ: The ups and downs of Cape
Johannesburg was once home to South Africa’s wealthiest individuals. However, the tables have turned, with the country’s most centi-millionaires now found in Cape Town.
Henley & Partners’ Centi-Millionaire Report for 2024 outlined that Cape Town has taken the crown due to high hopes of better governance, improved service delivery and greater safety.
“Other factors that come into play when these wealthy individuals make a decision to relocate include the economy, the tax environment, business and investment opportunities, and privacy and security,” read the report.
The report listed Cape Town as the most loved holiday destination in the country, with more than 150 centi-millionaires owning second homes in the city. The Mother City is the only city that shows as the elites’ favourite holiday destination in the country.
Renting a property in the Northern Cape is more expensive than renting in Gauteng. The Index revealed that the average rent in the province is R9 581, while it is R9 201 to rent in Gauteng.
Rent in the Northern Cape is now R307 more than a year earlier, and it remains the second highest in the country.
“The share of tenants in arrears fell to 18.9% in Q1 2025, 0.1% below the previous quarter and 1.9% lower than a year earlier.
“However, the amount they owe rose sharply, from 65.7% last quarter to 71.1% in the latest stats. Even so, this is still well below average.”
Gauteng is the geographically smallest province in the country, and its average rent for the first quarter of 2025 increased by R258. The Index is of the view that unless rental growth in Gauteng turns around, it could easily lose its place on the podium this year.
“15.6% of tenants owed rent, down from 16.3% in Q4 and the second-lowest share in SA. However, tenants in arrears owe an above-average 86.0% of rent. This is down compared to last quarter’s 89.2%, but it is still the second-highest in SA.”
The City of Gold has experienced deteriorating service delivery, rising crime rate, mismanagement of public funds, corruption, and collapsing infrastructure, among other issues.
The fourth most expensive province to rent in is KwaZulu-Natal, with the average rent being R9 170, an increase of R400.
“The percentage of tenants in arrears in KZN is also unchanged since last quarter, at 19.4%. This is the third-highest percentage in SA, but still the lowest it has been in the province in over five years.
“On the other hand, tenants in arrears owe a below-average 73.5% of rent that has nevertheless risen from last quarter’s 71.7%.”
Sitting at number five is Limpopo. The average rent in Limpopo is R8 899, R872 more than a year previously. 17.1% of tenants owed rent in Q1, 0.1% more than the previous quarter and still the third lowest in the country.
“However, things have got worse for those already in financial difficulties. The average arrears percentage climbed from 71.8% in the fourth quarter of 2024 to 80.4% in the first quarter of 2025, meaning its tenants now owe the third-highest percentage of rent of any province.”
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According to the Index, Mpumalanga sits in sixth position, with average rent being R8 460, just R91 more than a year earlier. “20.1% of tenants in the province now owe their landlords rent, the second-highest percentage in SA and up from 19.6% last quarter.”
The Free State sits in the seventh position, with an average of R7 453, an increase of R526 year-on-year, just enough to overtake Eastern Cape’s position.
“20.8% of tenants were behind on their rent in Q1, falling from 24.2% last quarter. It is still the highest in the country, but by a lot less than before.”
Eastern Cape’s average rent is R7 330, up by R309 compared to a year earlier, making it the province with the second-lowest rents in the country.
“The share of tenants in arrears in the Eastern Cape rose to 19.3% from 18.7% the previous quarter for the second-highest quarter-to-quarter increase in SA.”
The Index also focused on which income brackets are the highest risk. Of applicants earning R80 000 or more, a full 60.6% fall into the minimum risk category, while just 12.2% are classed as high risk.
“Meanwhile, in the lowest income bracket, only 23.0% have the combination of a high credit score and a clean payment history needed to qualify as minimum risk, while 37.0% are considered high risk.”
When it comes to age, 20- to 29-year-olds are classified as minimum risk because most of them do not yet have a long credit history that would demonstrate low risk; however, they also have more disposable income left over after debt repayments and rent than any other age group.
Meanwhile, 61.3% of individuals aged 60 and above were classified as being at minimum risk.
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