Holiday rentals to boom this summer and ‘Cape Town will be a hot spot’
Although holidaymakers tend to leave bookings a bit late, there is no shortage of eagerness to get away for a holiday. Many are looking to book a secure spot that allows them to get out of the house to a convenient coastal spot that does not leave them at risk if there is another pandemic wave.
While some international travel will still be affected due to travel restrictions for South Africa, agents expect locals to flock to holiday destinations around the country this summer.
The attraction is endless and there is no doubt that those who can travel, will head to the Cape and will find good value too.
Short-let rental agents say they are already about 85% booked out for December and January. This year has been a surprise with bookings in tripling, Hermanus some homes have even quadrupled in booking conversions, she adds.
She says further that guests have more downtime with extended school holidays and lockdown periods and guests have been eager for mini breakaways. 90% of bookings are local South Africans with only about 10% international, mostly from Europe and a few from the USA.
Prices have remained fairly flat with a slight decrease in some rates. Rates are down by about 20% from what they should have been if there was no pandemic, hence the rate for a three-bedroomed house is around R2 500/night and for a luxury 6-8 bedroomed villa about R12 500/night max.
Weekend bookings also remain popular. Month-to-month rentals are also booming in Hermanus due to the pandemic as people look to escape the confines of their city homes. Rentals range from R15 000/month for a smaller home to as much as R35 000 for bigger homes. Bookings are coming from Joburg, Pretoria and even KZN, often at short notice as people want to quickly get away before the restrictions.
The South Coast expects bookings to be better this December compared to last year. The pandemic has had a major dampening effect on people and the industry alike.
Prices on the South and Mid-South Coast have remained flat. Current rates are around R1 300 to R2 850/night which is an almost “give-away” price.
Whereas Zimbali accommodation for December would usually already be booked out by September, this is no longer the case. Bookings are now delayed and confirmed closer to the actual occupation date. Bookings are also for shorter periods and rates can be expected to be a little lower overall, depending on the property.
Rental rates have remained largely flat and discounted rates apply for longer stays. Homes that rented at R10 000/night previously will now rent at R8 000/night and homes which rented at R5 000/night can be expected to rent at R4 000/night during peak periods. Outside of peak periods, demand drops off once rates exceed R2 500/night.
Ref: Prop 24