Behind SA’s buy-to-let slump
Record-low interest rates, an oversupplied property market and a pandemic-induced financial squeeze on tenants leave many landlords with no choice but to cut rental prices this year
The good old days, when buy-to-let investors could push through 8%-10% rental increases on annual lease renewals, appear to be gone forever. In fact, many residential landlords have no choice but to drop rental prices on flats and townhouses this year, or risk losing their tenants.
Latest residential data confirms there is a marked oversupply of units to let in most cities. That has already placed pressure on rentals...