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East London in a state of flux as office space demand rises.

Office, Retail, Industrial, Hotels and Residential
Posted On Wednesday, 20 August 2003 02:00 Published by
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WHILE there is an oversupply of offices in Johannesburg and some parts of Cape Town, the reverse holds true for East London.
WHILE there is an oversupply of offices in Johannesburg and some parts of
Cape Town, the reverse holds true for East London.
Gwyn Bassingthwaighte, who heads the commercial property division of Pam
Golding Properties' East London office, says East London is becoming a major
service centre and this has created a strong demand for both commercial and
residential property.
Bassingthwaighte says there are four new office blocks being built in East
London because of the demand for space. "That's significant for East
London."
He says there is also a need for industrial space and East London is in a
state of flux.
Car manufacturer DaimlerChrysler is on the verge of deciding whether it is
going to expand its capacity in East London. "If they expand that capacity
it's going to put a lot of pressure on warehousing industrial space.
"At the moment the pressure is there and developers are building on an ad
hoc basis," he says.
Bassingthwaighte says that since Bisho was declared the capital of Eastern
Cape, nearby East London's commercial and residential property markets have
seen major spinoffs, with many officials and representatives choosing to
live in East London, and many government offices taking up space in the
city.
This has had a knock-on effect as other organisations that work with the
government have followed suit, taking leases of three to five years.
He says the demand for office space remains strong, and that over the past
six years 32000m² of Agrade office space has been built and taken up.
About 3000m² of new A-grade office space is being constructed or has
recently been completed near Beacon Retail Park.
Bassingthwaighte says a high percentage of existing B- and Cgrade space has
also been filled, both in the East London central business district and
elsewhere.
Hanlie Bassingthwaighte, who is principal of Pam Golding Properties'
residential franchise office in East London, says the demand for homes has
increased across the board, putting pressure on the residential market.
She says properties priced between R350000 and R700000 are most in demand.
Publisher: Business Day
Source: Business Day
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