For quite a few months now we have suspected that the coming season will be one for the record books. The winter months had been relentlessly busy with average occupancies ranging between 70%-75% but, until recently, the jury was still out on how nightly rates would recover going into season. With October behind us we can confirm that October rates were 12% higher than the pre-Covid rates. Moreover, occupancy is a full 9 percentage points higher than October 2019.
What is responsible for this?
Unsurprisingly, the main trend driving this recovery is the pent up demand for travel following two years of Covid related travel restrictions. But Covid also accelerated digitisation which has made companies more relaxed about remote work, sparking the rise of digital nomads and remote workers. The City of Cape Town and Airbnb have partnered up on promoting Cape Town as one of the top global remote work destinations and this has certainly contributed to the recovery. Our average length of stay has increased post-Covid which confirms this trend.
Additional factors that are contributing to the recovery:
Semigration to the coastal areas of SA from economic hubs like Gautemg.
A weaker currency makes SA a more attractive long haul destination.
The supply of short-term rentals contracted during Covid as more properties switched to long-term rentals. We expect most of these to come back as their long-term leases end.
The Season Ahead
Forward bookings for December and beyond are at a level higher than we have ever seen in our 8 year history. The last minute nature of bookings makes it difficult to predict the exact performance for December but we expect
New Client Zone
We are excited to announce that we have a brand new client zone with a sexier interface and some new functionality:
Clients are able to export and filter booking and expense info into a CSV (filtered by specific date ranges or expense types) which will make things easier when tax season comes around.
Updated dashboard stats.
There now is a choice between light and dark mode.
Of course clients are still able to block out dates for personal use, see all bookings and expense data in real time, view past statements and see the pricing for each day on their calendar.
We are excited to announce that we have launched in Durban and will now be offering our full short-term rental management service to property owners in Ballito and Zimbali. The first guests will be welcomed in January 2023.
The demand for short-term rental properties in the R1.5m-R2.5m bracket has skyrocketed. We started offering property sales a few months ago (mainly to our clients) and after launching the “agents” and “sales” pages to our website we quickly built up a new database of buyers looking to invest in high-yielding properties. It quickly became clear that a large portion of the market, while keen to invest, struggled to assess whether properties were good short-term rental investments. In response we created this guide to buying short-term rental properties: https://www.propr.co.za/2022/08/17/ultimate-guide-to-buying-an-airbnb/ and we now actively consult to buyers to help them identify good investment opportunities. Get in touch if you would like to learn more.