Rental escalations exceed CPI as tenant good standing slows down
The TPN Residential Rental Monitor for Q3 2025 highlights a rental market balancing strong growth with emerging consumer strain. National rental escalations stand at 4.76%, overtaking the 3.4% CPI, while tenant good standing slows to 83.95%.
Non-payment rose to 6.15%, a warning sign as the market heads into the high-risk fourth quarter. Provincial performance remains mixed: the Western Cape leads with 87.82% good standing despite a slight decline, while KwaZulu-Natal performs worst of all provinces at 76.81%.
South Africa’s removal from the FATF grey list and enhanced compliance protocols have bolstered investor confidence and mitigated risk in tenant placements. However, mounting household financial pressure underscores the need for proactive risk management and robust collection strategies.
Download the full TPN Residential Rental Monitor Q3 2025 for detailed insights on rental growth, tenant payment trends, and provincial performance.