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Johannesburg Commercial Property Report : 2011 4th Quarter
Jones Lang La Salle has just released its Q4 2011 on the status of the commercial property market in Johannesburg. Office Market Despite the flat line economy seen during the last quarter of 2011, an improvement in office space rentals helped to secure minimal increases and reduced vacancies in the more prominent nodes in the Johannesburg office market. Feb 01, 2012
Office space vacancies reducing in Growthpoint’s portfolio
When Growthpoint successfully leased two prime office blocks in Cape Town recently, it’s vacancy footprint in that city moved below 5%. SAPOA’s statistics for the Cape Town CBD show that office space vacancies stand at 10.2% while the high demand nodes of Century City and the V&A Waterfront stand at 8.7% and 5.7% respectively. Jan 25, 2012
Commercial property sales boost Emira Property Fund by R260m
Since the beginning of its 2012 Financial year Emira property Fund (EMI) has raised in excess of R260m through the sale of eleven properties in its portfolio. Jan 25, 2012
Upmarket Katherine & West Office Development Selling Well
Almost 40% of the Katherine West Development in upmarket Sandton has been sold. With 4 of the 7 penthouses sold off plan and with another 10% of the total office space currently under negotiation, this development is set to become a landmark in prestigious office space. Jan 19, 2012
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Commercial Property Becomes New Market Indicator

In an interview with Jason Lee, the Head of Rawson Property’s new Commercial Franchise Division, the following facts emerged:

  1. Previously, the residential property market was the single major indicator of fluctuations in the economy. Economic upturn was traditionally preceded with increased activity in the residential property market. This trend, in recent times, has not been indicative of the economy’s movement in South Africa.
  2. Commercial property has, however, shown greater resistance to the downturn in the economy in recent times with negative growth rates straight-lining at less that 6% over the past two years
  3. The commercial property sector in the Johannesburg Stock Exchange has outperformed almost every other sector with the exception of certain commodities (precious and other metals)
  4. According to sherriffs’ reports, the repossession of commercial properties has been almost negligible when compared with repossession of residential properties


Lee believes that these trends are set to continue for the next year or two and that, when the economy finally bottoms out and turns around, commercial property will lead the trend.

Banks, and property investors in particular, have long been aware of the trends existing in the market and have leaned towards investment in the commercial property, offering favourable rates, minimum deposits and “user friendly” conditions.

Lee further adds “Those buying our commercial franchises are often highly experienced property investors and are by no means speculators: they are hard-headed business people who, with interest rates and prices at current levels, can see the potential for good returns in the property sector.”

Lee emphasized that his comparison between the residential and property markets does not mean that he disfavours residential property investment in any way.
 

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