Student lodging still in demand

Despite the relatively quiet market caused by numerous factors but especially the increased home bond interest rates and the new Credit Act, the demand for student accommodation remains strong.

The demand has been intensified by a decision of the University of Free State (UFS) management to encourage first and second year students to stay in hostel during this period, which is forcing a number of third and fourth year students to look at alternative places to stay.

Changes in the integration patterns that are being implemented from the end of the year are also likely to result in a change of hostel living patterns at the university.

Student houses have become a feature of the Brandwag and Universitas suburbs, sometimes not a welcome one, as student lifestyle does not always live in harmony with family orientated residents.

However, there would appear to be little alternative as affordable flats are in very short supply. Few blocks of flats have been built over the past 20 or 30 years but the student population has grown substantially and current hostels at both the UFS and the Central University of Technology (CUT) are unable to offer the necessary amount of accommodation that is needed.

The demand for rental accommodation in the central and near western suburbs around the UFS and CUT is very high, not only by students but the population in general. Relatively few blocks of flats have ever been built outside the traditional city centre, Westdene, Brandwag, Navalsig and Willows and with building ground in these areas almost unobtainable it is unlikely that much new construction will take place.

The increase in demand for affordable flats is likely to see rentals increase strongly in the next 12 months. Rentals have not nearly kept pace with the increase in sale prices being obtained for flats and the increase demand for rental flats may do much to redress this balance.

Over the past twenty plus years little attention has been given to the building of much-needed flats with an emphasis having been placed on the development of townhouses. Local authorities are beginning to understand the need for more diverse development and are looking for developers to consider alternatives to townhouse development.

Rental accommodation is generally in very short supply in Bloemfontein and the situation is likely to get worse before it gets better.

"We have lots of people looking to rent a wide range of properties from small student flats to normal houses, but we find that we are letting whatever comes in almost as soon as we receive it from landlords," says Mike Spencer of Platinum Global.

"Owners can be very fussy about whom they take on as tenants and can demand higher rentals as well as insist that tenants be better tenants. All tenants are being credit checked before being offered leases and this has resulted in fewer defaulting tenants.

"Tenants who behave badly or fail to pay rental on time are likely to receive early notice to vacate as it is very easy to replace them with good quality tenants."

Mike went on to say that Platinum Global was very happy to assist landlords obtain the maximum benefit from their rental investments but also went out of their way to assist tenants in solving their problems too.

He said that he did not see an early solution to the problem of shortage of rental accommodation, especially for students as the population of Bloemfontein was expanding far quicker than developers were able to provide new homes.

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