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LONG TERM LOSSES IMPACT OF AIRBNB
Category Property News
Between 2010 and 2012, the Cape Town property market was affected by the rising popularity of Airbnb, says Arnold Maritz of Lew Geffen Sotheby's International Realty.
This saw some investment property owners withdraw their rental stock from the long term letting market to tap into the promise of a more lucrative short term letting business. "
The consequence was a shortage of long term rental stock and an increase in rental costs as demand exceeded supply. It took a while for the market to work out which areas work for short term letting, and landlords who discovered their vacancies were high returned properties to the long term market."
Presently, there is an over supply of long term rental stock across most areas of the peninsula, resulting in lower annual increases during the past two to three years, Maritz says
Author: Lew Geffen Sotheby's International Realty