Johannesburg property market opens new opportunities for aparthotel growth

Source: Supplied. Derick Tait, managing director at Wink Aparthotels.

Well-located urban short-term lets are outperforming long-term rentals, reshaping local property strategies. Within this evolving landscape, aparthotels are emerging as a compelling hybrid investment vehicle.

By combining the flexibility of short-term letting with professionally managed operations, they offer investors a more hands-off approach while tapping into the growing demand for convenient, apartment-style accommodation in key metropolitan nodes.

Operators such as Wink Aparthotels – that will soon be expanding into Johannesburg through their partnership with the much-anticipated Saxon Square development - were early adopters of this hybrid model.

The short-term rental management group recognised that against a tourism backdrop that prioritises flexibility above all, guests would embrace an experience that combines the convenience of hotel services with the space and functionality of apartment living.

“But while international tourism has rebounded to above pre-Covid levels, it is local travellers, not international holidaymakers, who are the main drivers of demand for well-located ‘aparthotels’,” comments Derick Tait, managing director at Wink Aparthotels.

“Flexibility is an obvious attraction, but affordability is just as important. As remote work becomes more entrenched, professionals are seeking accommodation that allows them to stay longer, with apartment-style features such as fully equipped kitchenettes and dedicated workspaces helping to keep travel costs down.”

Unlocking Johannesburg’s rental potential

Cape Town may have long dominated South Africa’s short-term rental conversation, but Johannesburg remains a comparatively underexplored market - particularly when it comes to professionally managed ‘aparthotel’ offerings.

It is precisely this gap that Wink Aparthotels, best known for managing a portfolio of trendy Cape Town properties, is now moving to capitalise on through its partnership with mixed-use new development Saxon Square, marking the group’s first venture outside of the Western Cape.

Set for completion in June 2026, Saxon Square is strategically located on Oxford Road, Rosebank – one of the city’s most vibrant and well-connected neighbourhoods – and achieved more than R70m in sales within the first 10 weeks of launch, reflecting strong early demand for this type of mixed-use, investment-led development.

“Wink’s expansion into Johannesburg signals growing confidence in the city’s short-term rental potential, while positioning Saxon Square to meet rising demand for well-located, professionally managed accommodation in a market that is only just gaining momentum,” adds Tait.

Why managed models are gaining traction

While the growth of Johannesburg’s ‘aparthotel’ sector points to a clear opportunity, it also raises a practical question for investors: how hands-on do you want to be?

Short-term rentals can offer stronger returns than traditional leases, but they come with a different level of involvement. Managing bookings, guest turnover, cleaning and maintenance can quickly become a full-time job - particularly for investors without experience in hospitality.

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“Short-term letting can be incredibly rewarding, but it’s not passive by nature,” says Tait. “There’s a lot happening behind the scenes to keep units occupied and running smoothly.”

This is where managed models are starting to gain traction. In the case of Saxon Square, Wink’s team will oversee the day-to-day running of participating units - handling everything from bookings and guest services to maintenance. For investors, this offers a strategic way to cash-in on the lucrative short-term rental market without needing to manage those moving parts themselves.

Income certainty in an uncertain market

Arguably the strongest incentive for investors is the adoption of the rental-pool model and the level of income certainty it offers in a market not typically associated with predictable returns.

Through Saxon Square’s rental-pool structure, income is consolidated across all units and distributed proportionally based on unit size, meaning returns are not tied to the occupancy of an individual apartment but rather to the overall performance of the short-term rental pool. Operational costs such as levies, rates and taxes are also managed within the structure, further reducing the day-to-day involvement required from owners.

“The rental-pool model fundamentally shifts the dynamic for investors - offering access to the upside of short-term rentals, but with a level of income stability that’s not usually associated with Johannesburg’s hospitality sector,” says Tait.

Beyond the income certainty and reduced management burden, buyers at Saxon Square may also be able to benefit from tax efficiencies under Section 13 of the Income Tax Act, which allows qualifying investors to claim deductions on new residential units over time. Subject to certain criteria, this can further strengthen the long-term investment case for those building a short-term rental-property portfolio.

“What’s rapidly changing in Johannesburg is not just short-term rental demand, but the model itself,” Tait concludes. “Investors no longer have to choose between higher returns and a hands-off approach. Now, they can access both through professionally managed, short-term rental solutions that are designed for how people live and travel today.”