THE Durban property market stands out in terms of its growth potential and bold new developments when compared with the rest of the country, says JHI Real Estate's South African Property Report for 2004.

JHI Real Estate says The Point; Wilson's Wharf; the Sun Coast Casino; further upgrades to the International Convention Centre; Durban port; the R700m uShaka Island Marine Park and the recent investment in Umhlanga Ridge area and the Riverhorse Valley Business Estate are all pointers to the health of the local economy.

As far as the retail market is concerned, JHI says its research shows that KwaZulu-Natal commanded the highest investment in retail property last year, with investment increasing 63% on 2002 levels. Durban retail investment increased more than R280m over the same period.

JHI KwaZulu-Natal regional director Rob Moran says there are still vast areas of untapped retail potential. He says the outlook for the retail environment, in terms of consumer demand, is positive over the next year.

But Adrian Saville, chief investment officer at Cannon Asset Managers, says the success of retail property investment in Durban can be explained by "one-off events" such as the uShaka Island Marine Park, where there is a high retail element.

That would explain why Durban stands out as having had such good levels of retail investment in retail in the course the past year, he says.

"I would express some concern that the retail property market is overtraded in some parts of Durban."

Saville does not believe that the same level of activity will be repeated this year, but agrees that there are opportunities in the retail segment.

"You have La Lucia Ridge as a growth node, where you have investment opportunities," Saville says, pointing out that the Gateway shopping centre still has surplus capacity and there is room for retailers to move in there without acquiring new investments.

However, Neville Schaefer, CEO of Trafalgar, says the retail property market in the coastal city is "very healthy" and thinks there are a "lot more opportunities" for retail property investment in Durban.

Jul 07 2004 10:34:00:000AM Nick Wilson Business Day 2nd Edition