Sandton is booming

The Sandton central business district (CBD) achieved a rental growth of 16% during the fourth quarter of 2011, Rode’s report on the South African Property Market found.

Sandton’s CBD reported declining vacancy rates and improving demand for grade-A office space, indicating that Sandton could be leading a recovery in the grade-A office market.

However, the Rode report noted that other office regions performed poorly, as vacancy rates did not decrease and there was mostly nominal rental growth – below building cost inflation of 14%.
Meanwhile, the report found that Pretoria showed the best yearly growth for industrial rentals with an 8% growth, compared with rental growth of between 2% and 3% for the Central Witwatersrand, the Cape Peninsula and Durban.

The fourth quarter of 2011 indicated a possible improvement in investment demand for industrial and office properties as capitalisation rates on these property types strengthened marginally, said Rodes property economist Erwin Rode.

“One should not read too much into this, considering that office and industrial vacancy rates are still stubbornly refusing to drop, while rentals are finding it difficult to beat inflation. This, naturally, does not augur well for capital-growth prospects,” he added.

Meanwhile, the Rode report found that the housing market continued to be “stuck in a rut”, despite record low interest rates.

“It seems that neither households, nor mortgage providers are taking the bait of low borrowing costs,” he concluded.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us