This is the view of Johannesburg based property economist Francois Viruly in his latest quarterly report on the country's commercial property sector.

Viruly said this was the result of the greater densification of cities.

"On the back of that densification, we will see a shift in the coming year to neighbourhood convenience shopping centres.

The growing level of traffic congestion in many South African cities is another factor," he said.

Viruly said larger regional shopping centre were becoming "destination places", where people would make a day of it.

In the past, people were happy to travel distances to do their grocery shopping at regional shopping centres, but the time involved was "becoming greater".

Peter Sparks, MD of property loan stock company SA Retail, which has a number of neighbourhood shopping centres in its portfolio, agreed with Viruly.

"The whole premise to SA Retail when it listed in November 2001 was convenience shopping," said Sparks. "I think there has always been a market for both regional and neighbourhoods."

He said that regional shopping centres catered for a customer's "every shopping need", while neighbourhood shopping centres generally catered for "convenience requirements".

"I think there will continue to be a demand for both of these types of shopping centres. Notwithstanding that I agree there will be a growing demand for convenience shopping ," said Sparks.

He said SA Retail was expecting a "favourable year".

Business Day