Soaring Cape property narrows options for Jewish tenants

When Michael* looks out of his living room window in Vredehoek, he sees Lion’s Head rising above Cape Town’s skyline. It’s an enviable view, but it comes with a price tag that keeps climbing out of reach.

In 2023, Michael was living in Milnerton with his wife and son and decided to move his family closer to Herzlia, where his son attends school. Initially, they paid R9 800 per month for their two-bedroom apartment. By early 2024, it had risen to R11 000. In April of this year, the landlord suggested an increase of 45% to R16 000.

Luckily, he managed to negotiate the price down to R14 000 per month, but recently, the rent increased to R16 000. Thankfully, due to a generous family member, Michael and his family were able to retain the rental. The escalation is brutal, and he admits he may soon have to return to Milnerton. But moving comes at a cost of its own.

Their current apartment is five minutes from Herzlia. From Milnerton, daily commutes would mean hours in traffic. “The convenience is everything,” he says. “Landlords see how much demand there is, and they know they can push prices higher. The lease says increases are at their discretion. It’s not a percentage. They can ask whatever they want.”

Stories like Michael’s are becoming common across the Atlantic Seaboard and City Bowl, areas long-considered the beating heart of Cape Town’s Jewish community. From Sea Point and Fresnaye to Gardens and Vredehoek, these neighbourhoods have been home to kosher shops, synagogues, and generations of Jewish families.

Yet as the Atlantic Seaboard becomes South Africa’s most sought-after destination, demand for long-term rentals has surged while the influx of Airbnbs and short-term rentals has capped supply. Leases have become insecure, and prices are spiralling. Jewish families, like many locals, are being squeezed out. Crucially, those caught in the squeeze stress that it’s not about antisemitism. The issue isn’t prejudice, it’s affordability.

Jonathan Bloch experienced that instability first-hand. After returning from Tel Aviv, he rented two different flats in quick succession. In both cases, he had to pack up and move within months of starting the lease because the landlords decided to sell the units.

While he was aware of their intention to sell before signing the lease, the rental agent doubted that the owner would be successful in fetching the price he was asking. However, he didn’t struggle in selling the property. “Owners are getting incredible prices right now,” Bloch says. “So even if you find a place, you can’t be sure how long you’ll stay. It’s happening everywhere, not just to Jewish tenants.”

Now renting through someone he knows, Bloch has found a measure of stability. “Agents often work for both sides. They rent you the place, then sell it when the landlord wants out. It’s in their interests to stay in the owner’s good graces.”

Property consultant and former ward councillor Jacques Weber points to a straightforward explanation: economics. “Cape Town is attracting people from all over South Africa and abroad,” he says. “The Atlantic Seaboard is the jewel of Cape Town, and stock is limited. Demand far outstrips supply, so prices rise. Properties are selling within weeks, sometimes before they’re even advertised.”

Short-term letting platforms like Airbnb further shrink the pool of long-term rentals. Weber notes that talks around regulating these rentals could push more properties back into the long-term market, which might ease the pressure.

For the moment, however, insecurity is a fact of life. “Many landlords bought to rent, but now see the perfect moment to sell,” he says. “Tenants are displaced, and families who hoped to settle are forced to move on.”

While tenants often feel powerless, property lawyer Marlon Shevelew stresses that there are legal protections. South Africa’s Rental Housing Act governs residential leases, including rent increases and terminations.

On the “at their discretion” clause in Michael’s lease, Shevelew is clear. “In more than two decades, I’ve never seen wording like that. It’s extraordinary. My most extreme case was a six-monthly rental increase. But even then, the increase has to be structured. Landlords can’t just demand whatever they want, whenever they want.”

He says that if a property is sold, tenants still have rights. This is embodied in the principle of huur gaat voor koop (lease takes precedence over sale), which states that if you have a valid lease, the buyer must honour that agreement until it expires, unless there is a specific clause that says otherwise.

Shevelew advises tenants who have been unfairly treated to approach the Rental Housing Tribunal, a government body set up to resolve disputes. “In the Western Cape, it’s fairly effective, though there can be backlogs. The process is free and accessible to both landlords and tenants,” he says.

Could Cape Town ever introduce regulations on short-term lets like Airbnb? “It’s not impossible,” says Shevelew. “Bodies corporate already set their own rules on short-term rentals, and if long-term scarcity continues, regulation will become a bigger issue.”

For Jewish families, the disruption carries an extra weight. Staying close to the infrastructure of Jewish life – kosher shops; Jewish schools; and synagogues – isn’t just a convenience. It’s the glue of community life.

Community initiatives, such as the Jewish Community Services Property Hub, offer some support, but resources are limited. “Funding sources take too long and require too much paperwork,” Michael says. For most tenants, the battle is theirs to fight alone.

“When people are priced out or moved on, it fragments that sense of belonging,” Weber says. “Sea Point is still one of the largest Jewish hubs in South Africa. But affordability discourages many from living here. Families are shifting to the suburbs or leaving Cape Town entirely.”

Michael in Vredehoek worries about the same thing. He doesn’t want to uproot his son from the rhythms of Jewish school and shul life. But each rent hike brings him closer to a decision he doesn’t want to make.

*Name has been changed to protect the source.