Should you invest in property now?
08 June 2010
Until the crash of 2008, South Africans have seen some of the highest growth rates in property prices in the world over the past decade. With real growth in prices being seen again, is now the time to try and make a killing in the property market? Read more
Mixed fortunes for commercial property
May 2010
Although commercial property have weathered the recessionary storm quite well, it has had mixed fortunes over the last year.
The South African Property Owners Association’s (SAPOA) South African Property Market Trends Report 2010 showed South African commercial property returns have declined for the second consecutive year, but that it produced a marginally positive capital growth in a market with weakened fundamentals. Read more
Find offices in the City of Cape Town that hosts the World Cup Soccer 2010
21 May 2010
With a vast selection of offices available to let; commercial space is here to help you find offices within the Cape Town precinct.
From your corporate top of the range office space to your creative and more retail type offices please contact us whatever your request might be. We have warehouse space, storage space and any type of space you are looking for. Contact us to find out whether we have suitable commercial property for you.
Supreme offices to let at Cape Town International Airport
May 2010
Looking for an office near or close to the airport? This unique office block literally on the runway of Cape Towns International airport offers you the best possible service and structure to a corporate office block comparing to anything in the world.
Some specs and floor plans, CLICK HERE
Various sizes available, CLICK HERE
Market rentals showing impact of tougher economic times
19 April 2010
The effect of the economic downturn on market rentals has now become strikingly evident.
According to the latest Rode’s Report on the SA Property Market, in the fourth quarter of 2009 the overall growth in market rentals for office space was weak. This was especially evident in Cape Town (-6%) and Johannesburg (-4%) decentralized, where rentals were, on average, lower than what they were a year ago. But, this comes as no surprise in light of the faster northward march of prime-office vacancies in these two decentralized regions.
Even on the industrial front, nominal rentals have continued to shrink – despite the upward movement in the fourth quarter of 2009 in manufacturing output and capacity utilization. The Central Witwatersrand, Durban, Port Elizabeth and the Cape Peninsula all registered lower nominal rentals than a year earlier. “However,” notes Rode, “because building-cost inflation has actually declined by 9%, we have the anomalous situation that real rentals have actually shown positive growth.” Read more
Rode’s Report on the SA Property market 2010:1
April 2010
Overall, the growth in market rentals for office space is still weak. According to the latest Rode’s Report on the SA Property Market, this is especially evident in Cape Town (-6%) and Johannesburg (-4%) decentralized, where rentals were, on average, lower than what they were a year ago. But, this comes as no surprise in light of the faster northward march of prime-office vacancies in these two decentralized regions. Read more
Growth in market rentals for office space is still weak
09 April 2010
Especially evident in Cape Town and Johannesburg.
Overall, the growth in market rentals for office space is still weak. According to the latest Rode’s Report on the SA Property Market, this is especially evident in Cape Town (-6%) and Johannesburg (-4%) decentralized, where rentals were, on average, lower than what they were a year ago. But, this comes as no surprise in light of the faster northward march of prime-office vacancies in these two decentralized regions.
In contrast, robust rental growth in Pretoria (+9%) and Durban decentralized (+10%) was still evident. Read more
Listed property: Overpriced or a bargain?
30 March 2010
Property experts give their views.
PRETORIA - Despite continued speculation that the commercial property sector is headed for a bust, Efficient Group asset managers have turned bullish on listed property and are betting that listed property will outperform the All Share Index (Alsi) in 2010.
Total returns for the ALSI are expected to be between 9 and 12% for the year, while prominent property analysts have set the figures at 11 to 17% for the listed property sector. According to Efficient unit trust managers Valugro, the key drivers for this are a peak in rising vacancies, continued low interest rates and economic recovery. Read more
People’s park to bloom in Green Point
9 March 2010
The City of Cape Town is set to unveil a multi-million rand park in the next few months, with officials saying the facility would become a “great inner-city park”, similar to those in cities around the world. And while attention in recent years has been almost exclusively focused on the park’s R4.5 billion neighbour, the Cape Town Stadium, the Green Point Park is bound to lure Capetonians and tourists alike far into the future.
The park has been silently taking shape while fanfare surrounds the stadium and the city says it hopes to have all construction and landscaping of the 12.5ha park, which cost R54 million to develop, completed in time for World Biodiversity Day on May 22. Read more
Prospective property returns
15 February 2010
We looked at historical returns from local listed property and also the typical methodology of assessing the required rate of return. Here we consider the likely range of returns than an investor may achieve through an investment into listed property.
The total return from listed property – as with most, but not all investments – is made up of a combination of the yield and capital growth over time. Read more
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SPACE TO LET AT CAPE TOWN WATERFRONT
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What we can expect from SA commercial property
15 February 2010
While the predicted great depression never materialised, we have definitely lived through one of the great recessions of our time. Following this surprisingly widespread global slowdown, it will take some time to adjust. Property returns tend to lag the economic cycle, so expect nothing different this time around.
- The retail sector is largely dependent on consumers and their ability and willingness to spend. The large national retailers’ appetite for new space is also a major contributor to increased supply.
- The industrial sector, driven by the wholesale, logistics and production sectors, has tended to show a high correlation to the retail sector, especially during an economic recovery.
- Offices depend largely on business confidence, with employment trends in the “white collar” sectors influencing price paid per square metre and, importantly, the level of vacancies. Read more
CT station upgrade almost complete
15 February 2010
The Cape Town Station 2010 upgrade, currently being carried out at an estimated cost of R418m, has entered the final phase of construction. The project, most of which will be completed before the 2010 FIFA World Cup, is part of a longer-term revitalisation plan, with Phase Two of the redevelopment scheduled to begin after the event. The extensive remodelling, which began in September 2008, includes substantial upgrades to the existing 1960s building, which had become seriously degraded and functionally inefficient; the relocation of the long-distance bus facility; and significant improvements to the formal and informal trading spaces. 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
Historical Property Returns
9 February 2010
Over the years listed property as an investment has proved to be an excellent investment and indeed over most measurement periods has outperformed local equities. The big question is will this be the case going forward.
The chart below gives an indication of returns across the main asset classes over various periods. Although in nominal terms even over a 20 year period local listed property outperformed equities, because they are less tax efficient on an after tax basis, equities would have slightly outperformed. Nevertheless, listed property has been a superlative asset class with lower volatility when compared to equities. Read more
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
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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