Airbnb not to blame for high prices and low supply in Cape Town
Rental property viewings with 20 or more people present‚ and with many more applying‚ are commonplace in and around the Cape Town CBD — but what is causing these mostly "established young professionals" in search of the "live‚ work‚ play" lifestyle to have to fight over accommodation? Many have pointed the finger at Airbnb‚ which has 18‚000 active listings in the city. But property experts do not believe the online lodging service is the main driver for the high prices and low supply of affordable rental spaces. Property economist Erwin Rode said even though Airbnb is growing‚ it competes with hotels and guesthouses more than home owners looking to rent out their properties. "I don’t expect [there is] any effect that Airbnb could have had on [rental property] prices in general‚" Rode said. "Airbnb is a different market. It’s a business and tourism market. It’s completely different business to the man on the street looking to rent a house or home [long term]." Rode said the main driv...
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