Johannesburg leads Pretoria and Durban as far as inner-city rejuvenation is concerned, according to property manager Trafalgar.

Launching its inner-city report last week, Trafalgar said consistent demand for residential space combined with a stock of cheap properties were a "potent combination for investors".

The report focuses on rental units and sectional-title sales in the inner cities of Johannesburg, Pretoria and Durban.

Trafalgar said large investors tended to buy entire buildings and convert them into rental stock. It said demand from tenants was strong, and there had been a marked increase in the number of leases being signed monthly.

Trafalgar was signing about 110 leases a month in Johannesburg's inner city, a major improvement from the average of between 70 and 80 a month a year ago.

Net rentals had risen 12% over the past 12 months, with typical apartment rentals averaging between R1200 and R2500 a month .

The residential heart of Johannesburg included Hillbrow, Berea, Yeoville, Troyeville, Doornfontein, Judith's Paarl, Lorentzville and Bertrams.

Andrew Schaefer, MD of Trafalgar in Johannesburg, said typical renters in the inner city, were young, black and single.

The survey found 82% of those surveyed felt the inner city was a safe place to live and 96% believed their buildings were safe.

Trafalgar CEO Neville Schaefer said that five years ago he was nervous when he visited properties in the inner city . "Now, I don't even think about it," he said.

He said tax incentives for developments in the city would have a "very positive" effect .

" At the end of the day inner cities will become too expensive for the people that presently inhabit them ," said Schaefer.

Business Day