Airbnb vs Long Term Property Investment in Cape Town: Is the Bubble About to Burst? 🇿🇦🏡
Cape Town’s property market has changed dramatically since 2019. Back then, sellers were desperate and properties were going well below asking price. Now in 2025, short term rentals like Airbnb are booming, especially along the Atlantic Seaboard and in the CBD.But is it sustainable?In this video, I unpack the risks behind the current short term rental craze and explain why I am focusing on long term investments in more stable suburbs like Durbanville, Century City and Rondebosch. From inflated Airbnb returns to the hidden costs most people ignore, I show why long term property offers better consistency, lower risk and stronger overall returns.We cover:✅ What is driving the Airbnb trend✅ Actual occupancy stats and income figures✅ The real costs most investors forget✅ How locals are being priced out of the city✅ Where to find long term value in Cape TownIf you are a first time investor or looking to grow your portfolio, whether you are based in South Africa or abroad, this video offers a grounded and honest view of the market.Book a free consultation and let us talk property. Read the full articles:● https://www.moneyweb.co.za/moneyweb-podcasts/the-property-pod/rampant-demand-for-short-term-residential-rentals-in-cape-town● https://www.property24.com/articles/time-to-buy-cape-town-luxury-home-prices-fall-by-up-to-r10m/28734● https://www.dailymaverick.co.za/article/2024-07-28-average-capetonians-cant-afford-any-of-the-new-apartments-on-atlantic-seaboard● https://www.property24.com/brackenfell/protea-heights/property-trends/9602● https://www.property24.com/durbanville/property-trends/439● https://www.bizcommunity.com/article/international-buyers-drive-capes-luxury-property-sales-587450a● https://www.bizcommunity.com/article/capitalising-on-investment-potential-in-cape-towns-northern-suburbs-583140aIn this episode:00:00 Chasing Quick Returns00:31 2019 Cape Town and Atlantic Seaboard Buyer Shortage01:16 2025 Surge in Short Term Rental Demand01:32 Rampant Demand for Short Term Residential Rentals in Cape Town02:08 2019 vs 2025 Short Term Rental Demand02:49 Seasonal Fluctuations and Increased Operating Costs03:29 Average Annual Revenue per Annum for Airbnb in Cape Town03:47 Management Demands of Airbnb04:20 Are We in a Bubble and Are There Any Warning Signs?04:58 Risks of Short Term Rental Investors Fueling the Market05:27 Airbnb Disrupting the Global Property Market05:59 Cape Town Exploring Short Term Rental Market Regulations06:22 Understated Rental Income and Tax06:35 The Conclusion06:45 Stable Long Term Investments Cape Town Suburbs Have to Offer07:00 Consistent Demand and Long Term Growth07:34 Who Is Airbnb a Good Fit For?07:42 Is Your Aim Long Term Wealth Creation?08:05 Best Real Estate Returns08:21 Reach Out and Book a Free ConsultationSubscribe to us on your favourite podcast platform : Youtube: http://youtube.com/@propertycornerzaSpotify: https://shorturl.at/horJTApple Podcasts: https://shorturl.at/alFG7
--------
9:01
Inside the PayProp South African Rental Market Q1 2025 Report
In this episode of The Property Corner, Rowan Alexander is joined by Andre van Rooyen from PayProp to unpack the Q1 2025 Rental Index Report.They break down national and provincial rental trends, average rent growth, arrears rates, and what this means for landlords, investors, and tenants across South Africa.With the average national rent now over R9 100 and arrears stabilising at 17 percent, Rowan and André explore which provinces are seeing the fastest growth, why certain age groups are under financial pressure, and how practitioners can mitigate risk when placing tenants.They also touch on practical advice for futureproofing rental portfolios, evaluating affordability ceilings, and what to watch as interest rates and inflation shift.If you want data-backed property insight with practical takeaways for the rental market, this is a must-watch.Subscribe to The Property Corner for more episodes with expert guests and local market insight you can trust.Read the full report here: PayProp Rental Index
--------
39:45
Buying or Renting : Which Builds More Wealth?
Is renting really cheaper than buying in South Africa, or is home ownership the smarter long term play?In this episode of The Property Corner, Rowan Alexander breaks down the true cost of renting vs buying using real figures from over 15 years of market experience.He compares monthly expenses, investment returns, long term equity, and even projected net worth after 20 years to help you see what most of the online debates miss.Using an example of a R3 million home, Rowan explains when renting might save you in the short term and how buying can create far more value over time.If you have been on the fence about whether to rent or buy, this episode is packed with insight.Subscribe to The Property Corner for practical property advice made for South Africans, and leave your questions in the comments for a future episode.Listen on Spotify : https://open.spotify.com/show/2pKjGULdiq84n18mKQZGW9?si=fffd987dc4234feb&nd=1&dlsi=0cf65b48115d4863Listen on Apple Podcasts : https://podcasts.apple.com/us/podcast/the-property-corner-with-rowan-alexander/id1683273264Watch on YouTube: https://www.youtube.com/@propertycornerZAIn this episode:00:00 – Introduction00:28 – Online Debates vs Real Experience & Numbers00:57 – The Common Argument Explained01:11 – R3 Million Home vs Renting Comparison02:02 – AI-Driven Calculations & Analysis02:19 – Key Assumptions Behind the Comparison04:13 – Making Provision for Maintenance Costs04:33 – Monthly Costs of Buying a Home04:44 – The Case for Renting05:13 – Highest-Yielding Risk-Free Investment (ABSA)05:50 – How Much Can You Save Renting?05:57 – Growth Projections Over 20 Years06:38 – Why Are Costs Rising So Fast?07:33 – The Crossover Point (Year 10)08:05 – Fixed Instalments for Homeowners08:38 – Final Net Worth: Homebuyer vs Tenant09:39 – Renter's Net Worth After 20 Years10:09 – Putting the Numbers into Perspective10:33 – Why This Gap Happens Over Time10:54 – The R9.5 Million Difference11:45 – Can You Really Be That Disciplined?12:59 – Property Ownership & Retirement Planning13:45 – Advice for Those Stuck Renting
--------
16:17
Q&A: What South Africans Are Asking About Property Right Now
In this episode of The Property Corner, Rowan Alexander answers questions directly from our YouTube community.From whether you should buy in a trust or a company, to the debate between capital appreciation and cash flow, this Q&A dives into real issues that real South African buyers are facing.He also touches on refinancing challenges with buy-to-let investments and shares thoughts on the future of Airbnb, and how upcoming legislation may affect property owners.If you have ever left a comment or asked a question, this might be the episode where Rowan answers it.Subscribe to The Property Corner to stay up to date with local market insights and practical property advice, and feel free to leave your questions in the comments for a future Q&A episode.In this episode:00:00 - Introduction00:32 - Buy in a trust?01:14 - Pay your bond off quicker01:51 - Rental income vs Bond Payment02:38 - Sponsor03:47 - Subdividing to resell vs subdividing to create a multi-let05:41 - AirBnB07:49 - Residential Property Market in Gauteng08:18 - Buy-to-let for positive cash flow or buy for capital appreciation?09:07 - Outro
--------
9:59
The Hidden Costs of Buying a Home in South Africa Explained
Buying a property is one of the biggest investments most South Africans will make but the listed price is not the full picture. In this episode of The Property Corner Rowan Alexander explains the lesser known costs that can catch buyers off guard. From transfer fees and bond registration to occupational rent and overlooked moving expenses, this episode is filled with practical advice for anyone preparing to buy property.Rowan also shares real examples from his own recent move and explains why understanding these costs early can save you stress and money.Whether you are a first time buyer or a seasoned homeowner, this episode will help you prepare for the real cost of property ownership in South Africa.Subscribe to The Property Corner for more practical property advice and real answers to the questions buyers and sellers are asking every day.Watch now and stay informed. In this Episode:00:00 Introduction00:22 Common Inexperienced Buyer Misconception00:58 Transfer Costs04:01 Sponsor05:13 Bond Registration Costs06:50 Mortgage Bond Initiation Fee07:38 Occupational Interest Cost10:31 Indirect Moving Costs12:39 Security Upgrades13:15 Utility Costs15:04 Unforeseen Maintenance15:48 Are These Really Hidden?17:01 Final ThoughtsSubscribe to us on your favourite podcast platform : Youtube: http://youtube.com/@propertycornerzaSpotify: https://shorturl.at/horJTApple Podcasts: https://shorturl.at/alFG7
Welcome to The Property Corner with Rowan Alexander, Founder and Director of Alexander Swart Property Group. In this podcast series, Rowan takes a deep dive into the South African property market and shares his expertise, insights and knowledge with listeners.
Through his extensive experience in the industry, Rowan provides valuable information on a wide range of topics related to the South African property market, including market trends, property investment opportunities, the buying and selling process, and much more.
South Africa