Values of industrial stands in the East Rand and Cape Town outperform the rest

Posted On Tuesday, 31 October 2017 18:15 Published by
Rate this item
(0 votes)

Despite of the poor performance of industrial stand values in the country overall, due to declining economic confidence, those in the East Rand and Cape Peninsula still managed to enjoy real growth in the second quarter of 2017.

Rode_Associates_CEO_Erwin_Rode

This is according to the latest Rode’s Report on the state of the property market in South Africa.

Commenting on this, property valuer Erwin Rode notes: “Growth of 8% on the East Rand and 7% in the Cape Peninsula has outperformed increases in building costs of 6%. And while this growth can really only be described as marginal, it is nevertheless still growth compared to how other industrial areas in the rest of the country are performing.”

In contrast, Durban (at -3%) and Central Witwatersrand (at -2%) were both down when compared to a year ago, an expected result considering current economic circumstances.

Explains Rode: “Stand values on the whole tend to track industrial rentals, whose performance in turn is driven by the performance of key sectors relating to it, namely retail and manufacturing. While the underperformance of both these important sectors continues, it will continue to undermine the demand for industrial space to rent and, consequently, any growth in industrial rentals.

“We can only expect to see an improvement in the value of industrial stands countrywide on the back of a sustained recovery, first in retail and manufacturing, and then in turn on a new-found demand which will hopefully follow for industrial rentals.”

Source: Rode

Last modified on Wednesday, 01 November 2017 06:17

Most Popular

Stenprop acquires multi-let Dunball Industrial Estate for £4.8m

Oct 17, 2018
Julian Carey Stenprop
Stenprop, the UK multi-let industrial property investor, has acquired an industrial…

Table Bay Mall Takes 33 Steps Forward as it Turns One

Oct 18, 2018
TABLE BAY MALL
Table Bay Mall celebrated its 1st anniversary on 28 September 2018. With 65,000m² of…

Growthpoint completes Laser Logistics new premises at Mill Road Industrial Park

Oct 17, 2018
MILLROAD PHASE 3
Growthpoint Properties has completed the R44 million first phase of its new development…

House price growth stagnant but home loan approval rates on the increase

Oct 17, 2018
OOBAROMETER JUL SEPT 2018
Third quarter (Q3 18) statistics released by ooba, South Africa’s leading home loan…

RDDA winners announced on the opening day of the (SACSC) Annual Congress held at the Durban’s International Convention Centre

Oct 18, 2018
BAI
The 2018 Retail, Design and Development Awards (RDDA) winners were announced on the…

Please publish modules in offcanvas position.