What Cape Town plans to do about Airbnb housing crisis

Nerfherder

Nerfherder

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"AirBnb housing crisis"

LOL

Its been a problem be a lot longer than Airbnb have been around and who says the housing crisis has anything to do with them ?
Looks like some of the hotel groups and rental agencies are feeling the heat and want to create a bit of a scare.

EDIT:

This follows urban planner Siri Veracruz telling Private Property that Airbnb can be a threat to cities.
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Ah... there you go.
 
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Pythonista

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Housing crisis ??? And acres of space in the old "District 6" demolished area - but they're all to sh*t-scared to touch that spot. Even tho' it must be the most convenient piece of territory in the whole country.
 
crackersa

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Pythonista said:
Housing crisis ??? And acres of space in the old "District 6" demolished area - but they're all to sh*t-scared to touch that spot. Even tho' it must be the most convenient piece of territory in the whole country.
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why are they scared? sacred land or something?
 
Kevin Lancaster

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Not taking houses off the market

Velma Corcoran, Airbnb’s regional market manager for Southern Africa, said house prices were a complex issue and driven by many factors.

“We’ve met countless Airbnb hosts in Cape Town and seen how home sharing has helped them pay their bills and stay in their homes. The typical Airbnb host in Cape Town earns R36,700 per year by sharing space in their home for 23 nights per year,” said Corcoran.

“They aren’t taking houses off the market, they are sharing their homes and the cities they love, and using the additional income to help pay the bills.”
 
Sinbad

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Typical host charging R1600 PER NIGHT for a room share?

I don't believe that for a second.
 
G

Gtx Gaming

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Buddy spoke to a German guy the other day, he bought 2 flats in cpt cbd just for airbnb as an investment.

3mil for 42/SQM apartment and 4mil for the 52/SQM apartment, so the demand must be quite high for him to be able make some on it money :p
 
Nerfherder

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Gtx Gaming said:
Buddy spoke to a German guy the other day, he bought 2 flats in cpt cbd just for airbnb as an investment.

3mil for 42/SQM apartment and 4mil for the 52/SQM apartment, so the demand must be quite high for him to be able make some on it money :p
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This kind of thing will correct it's self. Soon the market will be saturated or the pricing will be too high, it will become too competitive for people to make money and these guys will start dumping the properties.

Not taking houses off the market

Velma Corcoran, Airbnb’s regional market manager for Southern Africa, said house prices were a complex issue and driven by many factors.

“We’ve met countless Airbnb hosts in Cape Town and seen how home sharing has helped them pay their bills and stay in their homes. The typical Airbnb host in Cape Town earns R36,700 per year by sharing space in their home for 23 nights per year,” said Corcoran.

“They aren’t taking houses off the market, they are sharing their homes and the cities they love, and using the additional income to help pay the bills.”
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If anything its opening up places that would otherwise be empty.

I think some kind of regulation is in order though... its got more to do with foreign nationals buying up property though.
 
xrapidx

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You're also not stuck with our pathetic laws given tenants the right to do just about whatever they want and not pay the rent...you then have to spend thousands getting rid of them, and all they do is move on to the next victim.

EDIT: Thought I'd amuse myself and search my area... two houses in my street :eek:

But this has given me an idea... There's a complex I've been eyeing for a rental property... and I see there are two AirBnb setups there, between R600-R800/night... Much better to rent for a few nights than monthly
 
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Nerfherder

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Pythonista said:
Perhaps scared of land claims. I'm not sure. But why else would perfectly good land that's 2km's from the city centre stand to waste for 40+ years ?
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I see there are new developments now, looks recent. I think they have finally decided to move forward.
 
P

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The property market (like most) is self regulating. No need for municipal interference
 
konfab

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Nerfherder said:
This kind of thing will correct it's self. Soon the market will be saturated or the pricing will be too high, it will become too competitive for people to make money and these guys will start dumping the properties.
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Exactly. The government should do nothing to the property market other than their commitment to RDP houses. They would be better off spending that R101 billion on upgrading the city's public transport system.
 
Merlin

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I disagree that political intervention is required to sort this out, however, as a renter in CPT, I do agree that AirBnB has definitely, significantly contributed to a shortage of affordable rentals.

I personally lost my flat earlier this year as the owner had decided that a gamble on AirBnB would net more than my very fair rental. For the record, I was an excellent tenant, backed up by the owner and all of my former landlords.

I have seen an above-inflation increase in the price of rentals too. I generally rent one-room, furnished units.
 
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