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Turbo-charged investment returns
01 February 2010
Wayne Lee
R100 000 invested in SA property 10 years ago worth a whopping R2m today
Realestateweb community member Wayne Lee shares his investment success story.
An interesting Moneyweb article recently showed that R100 000 invested offshore ten years ago would now be worth R80 000. Clients who invested that R100 000 in South African property now have R2m!
Quite simply we took the cash and bought four sets of semis in Bez Valley. Paid between R100k and R150k. Transfer duty and deposits amounted to R25k each. Ironically top performing investments like these were redlined and deposits were required. Anyway cash flow has never been negative since inception and for this example I will assume all the rental profits were used for holidays. These semis do not go for less than R650k now, so there we go. Simple as that! Read more
LATEST STOCK AND VACANCIES NOT YET UPLOADED
Should you require further info on below stock please CONTACT US
OFFICES FOR SALE IN CBD
143m², ground floor unit with two parking bays @ R 1.6 Million
159m², 5th floor in centre of town with two bays. Well located, good views @ R 2.3 Million
739m² for sale in THE BOULEVARD floor plans and viewing on request. Priced at R 17 000/m² Ground Floor unit which includes a R1500/m² fit out. There are 30 bays available at R 60 000 / bay.
962m, 2nd floor in Hill House, Somerset Rd including 17 bays at R 24 Million.
No stimulus for property market
27 Jan 2010
The property market will have to get by without the stimulus of a series of rate cuts, as it is unlikely to enjoy much interest rate relief during the course of 2010. Read more
2010 property predictions: Don’t expect double-digit returns
Mike Flax
December 2009
Senior figure in real estate sector says residential will turn first.
Those South African property watchers who are predicting significantly improved conditions in 2010 are by and large unrealistic, says Mike Flax, Executive Director of Redefine Properties. Read more
Latest Rode’s Report on the SA Property market shows scant improvement
November 2009
While property’s PR machine may have started talking about green shoots appearing, the facts reveal that the brakes − in terms of the growth in market rentals − are being applied more firmly now. This is according to data revealed in the latest Rode’s Report on the SA Property Market. Read more
12 big investors bid for Growthpoint’s notes
17 November 2009
South Africa’s largest stock exchange-listed property company reports back on inaugural Commercial Paper issue
JSE ALSI 40 listed company Growthpoint Properties Limited today announced that its R500 million inaugural senior unsecured Commercial Paper (CP) issue has been well oversubscribed, with R1.5 billion of bids submitted. Read more
Poorer distribution prospects for listed property sector
29 October 2009
Great times can’t continue for JSE-listed real estate companies – top economist
Beware: property shares are set to head for a performance dip. The recession will most likely take its toll on the income streams of real estate companies listed on Johannesburg’s stock exchange. That is the message from property consultancy Rode & Associates on the back of a string of respectable reports released by South Africa’s listed property companies. Read more
LOOKING FOR AN INVESTMENT PURCHASE
- R8 Million – Cape Town CBD, De Waterkant area… 10.5% Yield. (3 year leases in place
- R24 Million – Salt River / Observatory – 2000m² (5 strong tenants)Three, Four and Five year leases respectively. 11% Yield…
Should you be interested in an investment purchase please dont hesitate to Contact us
Property investments for strong stomachs, deep wallets
16 October 2009
“Free” rent for 2-5 years, no capital growth for 5 years: offshore warnings for South Africans.
With the rand’s strengthening relative to harder currencies like the UK pound and the euro, offshore investment providers are coming out of the woodwork touting their wares to South Africans eager to venture offshore – just as they did earlier this decade. Read more
MEDIA 24 - GREENPOINT, TO LET
Stunning offices to let in trendy greenpoint area. Be where all the action is going to be for the 2010 WORLD CUP! Read more
ANOTHER GREAT DEAL AT CENTURY CITY
Introducing The Gateway, Century City: 4 000 square metres of prime contemporary office space, soon to be ready for occupants who appreciate that high visibility and prestige are vital to their company image. And who understand that convenient, safe and easily accessible premises are crucial in maintaining a happy, productive staff! Read more
Office returns take a smack
5 October 2009
Offices are the worst-performing sector of the commercial property market for first half 2009 with total returns slipping to 1.6%, down from 8.1% year-on-year, figures released on Thursday by IPD South Africa showed.
Retail and industrial property both delivered total returns of 4.1% over the same period. This brought the average for the three sectors of the commercial property market to 3.4%, down from 7.3% in 2008. The IPD SA Property Bi-Annual Indicator tracks the performance of physical commercial property worth about R94bn. Read more
Rocky road ahead but opportunities do exist
September 2009
Speakers at this year’s popular annual Rode Property events countrywide had stern predictions for both residential and non-residential markets, with participants debating whether or not the ‘green shoots’ starting to appear in various sectors of the market are revealing any real indication of an upswing from rock bottom. Read more
GROWTHPOINT NEWS
27 August 2009
We have been discussing the results of quite a few companies over the past while as results for the period ending 30 June 2009 continue to be released. This full and half year results are particularly interesting as they have been achieved under generally tough circumstances. If you recall the ALSI peaked in May last year, commodity prices the following month, and inflation soon thereafter. Since then while inflation and more recently interest rates have come down, so has both local and global economic growth rates.
Local property companies are in much better shape than their offshore counterparts, but when putting our investment hats on we feel that offshore property offers much better value. Read more
Can SA weather global commercial property collapse?
07 August 2009
Conservative bankers save us from next market nightmare – analysts.
Not so long ago commercial property, globally, was a popular asset class for many investors and financing acquisitions was easy. But that has all changed since the recession. Read more
Property vs bonds, equities
31 July 2009
How property has fared, where it’s heading?
Want returns of 14%? And a smooth investment ride? Property will provide returns of this order, was the message from Len Van Niekerk, a property analyst who has been appointed as listed property company SA Corporate Real Estate Fund’s new managing director. Read more
Liberty: worst may be over for commercial property
31 July 2009
But cautions recovery is going to be hard work.
Britain’s biggest mall owner, Liberty International (LII.L), posted a 40% fall in interim net asset value per share on Friday but raised hopes the worst of the commercial property market maelstrom may be over. Read more
Banks squeeze commercial property sector
27 July 2009
Don’t even think about buying without 30%-plus deposit.
Bank credit policies are knocking commercial property players, from developers and building suppliers to brick-layers. Gordon Winning explains why real estate owners can expect more conservative market values and why it is getting harder to sell.
Interest rate volatility
The prevailing macro-economic conditions suggest a slow down or a bottoming out of this downward cycle. Read more
Office landlords rake it in
23 July 2009
Rental growth of about 20% for some. Can good times continue?
The weak economic activity has not had much of a dampening effect on the demand for office space and rentals.
According to the second quarter of the Rode Report, growth in the office market rentals managed to stay above building-cost inflation. Read more
Cape Town SA’s most expensive city for parking
22 July 2009
Johannesburg half-price. Weep if you’re in London – global survey
Cape Town is South Africa’s most expensive city for parking by a long-shot.
Monthly car parking in Cape Town and Johannesburg costs less than it did a year ago, but Cape Town remains the most expensive city in the country for monthly parking, says Colliers International. Read more
Shopping centre profits: winners & losers
21 July 2009
Property owners reveal which shopkeepers are more sheltered in recession
South Africa’s recession is hitting most retailers hard, with shopkeepers in larger size malls faring better than most. The latest quarterly South African Retail Property Trends/IPD report show trading densities for all shopping centres declining by 12,5% y/y to March, the sharpest drop since the report started earlier this decade. Trading density figures (turnover/gross lettable area) give an idea of how many rands are being generated per square metre. Read more
HIGHER YIELDS ON OFFER
21 July 2009
With higher yields now on offer and interest rate cuts still ahead; contact us anytime for building/investment acquisitions with good tenants in place.
From R 5 Million up to R 50 Million, we now have some great opportunities for investors to see real returns in the next 3 – 5 years!
For information on these buildings please contact us for further info.
Cashing in on UK property crash
29 June 2009
South African financial services company BJM lures investors with a “once in a generation” offshore property offer.
If you’re one of the lucky few with extra rands lying around, now is a good time to invest in the UK property market. So says financial services group Barnard Jacobs Mellet (BJM) and its property specialist partner Cornerstone Asset Management. They believe that the UK commercial property market offers good value thanks to the weaker pound and the extensive re-pricing compared to other markets. Read more
Tax break looms for property investors
24 June 2009
Want to transfer property out of a company or close corporation? Govt may give you second opportunity to do so, tax-free.
David Warneke, a tax specialist and partner at Cameron & Prentice Chartered Accountants, spells out how a new draft law will work in favour of property investors.
The Draft 2009 Taxation Laws Amendments contain a proposal that, if enacted, will allow individuals to transfer their domestic residence out of a company or close-corporation, for a period of two years, tax-free. The motivation for the proposal was to allow such entities to avoid the payment of annual duties. Read more
Health of building industry requires intensive care says latest Rode’s Report on SA Property Market
23 June 2009
Good news in the latest Rode’s Report is that office rentals have, thus far, remained fairly resistant to the scourge of the economic slowdown.
In the first quarter of 2009, impressive rental growth of 19% was still recorded in Pretoria and Durban decentralized, while in Cape Town and Johannesburg decentralized rentals were up by 14% and 8% respectively. In the CBDs, Johannesburg produced the best performance with nominal rentals growing by a notable 24%. Rentals in Durban CBD were up by 20% while 4% growth was achieved in both the Pretoria and Cape Town CBDs. Read more
Risk and return – when will we learn?
June 2009
The question that should be asked when making any sort of investment is “how safe is my money”? The risk in the investment must be related to the return or income from that investment… Read more
STYLISH OFFICES TO LET
17 June 2009
These sleek new offices located just outside of the CBD offers tenants a unique working opportunity. Not only have they lowered their rentals to accommdate the advertising/marketing/IT users of the park but they are offering short term leases should you be worried about your companies expansion or future… At R85/m² it is definitely worth a look at! Take a browse
Looking for commercial property bargains
17 June 2009
Experts size up the state of real estate markets – including the US, Europe, China, South Africa.
London’s commercial property market is near the bottom of the cycle; the US commercial real estate sector will start improving in 2011. Read more
Bank-bashing: Why it’s necessary
05 June 2009
Analysis of latest property buyer experiences with banks, what South African Reserve bank really thinks of nation’s bank executives.
This article, first published in Pam Golding Properties’ Intellectual Property magazine under the headline “Interest rates and mortgages”, sums up the South African credit situation for property investors. Read more
Commercial Properties For Sale - 10-12% YIELD
4 June 2009
With the prime lending rate now at 11% it is clearly evident that those in the know are acquiring commercial properties now. For those who have the cash their are few if any investments that would beat that of a commercial property.
We currently have buildings ranging from 5 to 50 Million with 10-12% Yields should you be interested please Contact Us
WESTLAKE UNIT FOR SALE
21 May 2009
This neat light industrial unit in Westlake/Steenberg area is highly impressive and ready to sell at R 1 900 000 (Neg.) For more info on this unit please CLICK HERE 226m² with a roller shutter door. Split into Offices upstairs with high ceiling Warehouse/storage space below. CALL JASON: 082 339 2722
Industrial property: rents, investment trends
May 2009
Rentals expected to decline in 2009 – national rental stats, global picture.
The South African industrial property market faces an economic threat which could end the excellent run it has enjoyed over the past few years.
This is according to the Rode Report of the first quarter of 2009 which notes that the two pillars of the industrial property sector, namely retail trade ( which affects both warehousing and distribution) and manufacturing and production, have put severe strain on the market.Read more
Long run performance numbers
4 May 2009
On an annual basis JP Morgan produces a report on the performance comparison of various local asset classes. They asses the total performance across various time periods of equities, property unit trusts, home repayments, bonds and fixed deposits. Read more
Best and worst office rentals
28 April 2009
Old buildings in big demand in South Africa’s CBDs. Cape Town, Johannesburg, Pretoria, Durban – latest A-Grade property rental stats.
South Africa’s major Central Business Districts (CBDs) boast some of the priciest Grade A office buildings, commanding gross monthly rentals of as much as R145/m2. Read more
The law of relativity applied to investments
23 April 2009
The first law of investment is that returns are relative.
Over the past year or so, equity values worldwide have more or less halved, yet the latest available capital returns on directly-held property in South Africa are still positive. This illustrates the truism that property’s returns are less volatile than those of equity, even though property will never outperform equity in the long run. Read more
Cement sales reflect poor performance in building industry
15 April 2009
Cement sales, which have been declining since the beginning of 2007, continue to reflect the contraction in the building industry.
Figures released by the Cement and Concrete Institute (C&CI) have revealed that in March of this year, the contraction in monthly average cement sales per day was almost 10% compared with a year earlier. Read more
Property, politics, economics: help!
20 April 2009
Real estate players will grapple with the unemployment issue and political climate at this year’s SAPOA convention.
SA’s political climate and employment outlook are two of the single most critical factors for SA business in 2009, with many property owners, tenants and developers unsure how to manage these economic and political realities. Read more
CPI figure puts dampner on benefits of cut in interest rate
14 April 2009
The last week provided some mixed economic data, says Elaine Wilson, research and strategic planning manager for JHI.
Some of the data released included a 1 percent cut in the prime lending rate to 13 percent; CPI increased to 8.6 percent year-on-year, up from the 8.1 percent in January; PPI contracting to 7.3 percent year-on-year in February from January’s 9.2 percent; a 70 percent increase in the number of liquidations; and a 38.8 percent increase in the total number of insolvencies recorded for January 2009. Read more
Commercial real estate: world’s top returns
1 April 2009
South African property investors enjoyed biggest gains in 2008 – latest stats, other asset classes.
Investment in South Africa’s commercial real estate market produced double-digit nominal total returns for 2008, at 13.0%, according to the SAPOA / IPD South African Property Index. However, with last year’s high inflation rate of 11.5% factored in, these returns equate to inflation-adjusted ‘real returns’ of just 1.3% for 2008. Read more
What the shrinking economy means to non-residential property
16 March 2009
During the fourth quarter of 2008, real GDP contracted by nearly 2% (annualized quarter-on-quarter), and the outlook for 2009 continues to look bleak. And you had better not expect any growth in 2009. Read more
CC could save members transfer tax
12 March 2009
The transfer of shares in a property-owning company is treated differently to the transfer of a membership in a closed corporation. Read more
Commercial market buoyant
23 February 2009
With equities remaining under pressure after a year in which investors have had to endure a turbulent marketplace, the commercial property market in general remains buoyant with cash investors aplenty seeking the right yields. Read more
UK Property Returns
17 February 2009
UK property has been a popular asset class for many investors and indeed for many SA investors over the years. Investors bought into apartments for rental and also into commercial property with the promise of excellent returns. With all investments, including property, it’s important to have a clear understanding of how a return is likely to materialise. Read more
Is the electricity crisis over?
9 February 2009
With the last scheduled load-shedding having happened as far back as April 2008, many South Africans are asking whether the electricity crisis is over. However, according to property economist, Erwin Rode, we’re not yet out of the woods. Read more
Building cost inflation at single-digit growth
9 February 2009
Interesting reading regarding the overall health of the building industry has been the deceleration in building cost inflation.
In the fourth quarter of 2008, building-cost inflation, as measured by the BER BCI, is expected to have waned to a rate of roughly 6% compared to the same quarter a year earlier. Read more
What’s ahead for commercial prop?
6 February 2009
During the initial stages of the current global financial crisis, South Africans thought that they would get through this period relatively unscathed.
Unfortunately, as time ticks on and the true reality of the severity of the downturn hits home, commercial property owners in South Africa are seeing significant downward pressure on commercial property values. Read more
Stanlib positive on office market
3 February 2009
South African unit trust company Stanlib on Monday said they remain positive on the office and industrial property markets in South Africa, but feel that some retail segments could be under pressure in view of continued consumer belt-tightening.
“Vacancies might rise in smaller centres with high exposure to line shops. Regional centres in which big national chains are strongly represented look less vulnerable,” said Keillen Ndlovu, co-head of the Stanlib property franchise. Read more
Take advantage of low rentals with high vacancy rate
2 February 2009
Rentals have been escalating ever so quickly over the last couple of years, having said that the tenants now have eventually got some bargaining power with their landlords as vacancies in the city and surrounds have increased dramatically with lots of new space now available. Read more
Global office market surveyed
23 January 2009
London’s West End and Moscow remain the world’s two most expensive office markets, respectively, while Hong Kong’s CBD, Tokyo’s Inner Central District and Mumbai’s Nariman Point round out the top five. This is according to CB Richard Ellis Group, Inc. (CBRE) Research’s semi-annual Global MarketView/Office Occupancy Costs survey. Broll is CBRE’s South African partner. Read more
Bank clampdown hammers commercial property developers
16 January 2009
Top property man says onerous new terms by bank managers means fewer developments, could be good for existing landlords
It’s not just home-buyers who are struggling to obtain finance for properties: big investors say onerous terms by banks mean new developments will not go ahead. That in turn suggests continued low vacancies in office space. Read more
Rentals still Strong
9 January 2008
Growth in flat rentals, in areas such as Cape Town, Johannesburg and Pretoria, has for the past three years remained roughly in line with consumer price inflation (+9% p.a.) while in Durban (+12% p.a.) and Port Elizabeth (+11% p.a.) rentals even managed to marginally outperform inflation. Read more
Property still strong
December 2008
Growth in flat rentals, in areas such as Johannesburg, Pretoria and Cape Town, has for the past three years remained roughly in line with consumer price inflation (+9% p.a.) while in Durban (+12% p.a.) and Port Elizabeth (+11% p.a.) rentals even managed to marginally outperform inflation. Read more
Property makes itself felt on Top 40
15 December 2008
For the first time a listed property fund has been included in the JSE all share Top 40 index. The inclusion of Growthpoint Properties in the Top 40 should enhance its profile and status locally and globally and may result in an increase in the purchase of Growthpoint linked units, specifically by index tracker funds.
Chairman Francois Marais, said on Friday Growthpoint’s inclusion in the index had entrenched the company’s position as a point of reference for the listed property sector. Read more
Make the right property choice
“Effective use of property can increase profitability, attract quality staff, enhance your image and make your business more efficient and easy to run.”
We realize the importance of property to your business as it is an issue which impacts on every company in Cape Town. It is vital that businesses think about property issues and the effect that property – from use to location – has on competitiveness.
In Cape Town we are noticing significant change in the property market and any successful business cannot afford to ignore this key area.
For most companies property is the second highest business cost.
Commercial property usually represents over a third of total business assets;
and running costs can be the second highest cost after wages. Property is therefore key to business success: not only does it dominate your financial
statements, but it can also provide real competitive advantage through its location, the working and sales environments it provides, and
the image and profile it supports.
A lack of strategic awareness around property means that many companies have little knowledge of their property costs. Email Commercial Space for assistance with your property needs!
Email us or contact us on 082 339 2722 to find out more. 