The TPN Residential Rental Monitor for Q2 2025 reveals unexpected tenant resilience and strong rental growth, even though South African consumers continue to face persistent economic headwinds. Despite consumer confidence remaining below historical averages and a growing reliance on credit, the percentage of tenants in good standing improved for the third consecutive quarter, reaching 83.94%.
National rental growth accelerated to 4.62% year-on-year, driven by strong demand and price corrections in the lower value bands. The TPN Squat Index shows a slight downward trend, dropping from 3.49% to 3.41%, reflecting improvement since the 2020 – 2022 period but remaining above pre-2013 levels.
Provincially, the Western Cape continues to lead with the highest good standing (88.81%), while KwaZulu-Natal remains the weakest performer at 76.59%.
TPN’s data confirms that rental payment remains a top financial priority for most South Africans. However, the movement of stable tenants into higher-risk brackets post-application is a clear call to action for property investors and managers to adopt proactive, ongoing risk management strategies.
Download the full TPN Residential Rental Monitor Q2 2025 for detailed insights on tenant risk migration, rental growth, and provincial performance.