The Southern Cape is experiencing a commercial property boom, with investors scrambling to snap up industrial space.

Agents say the region's rapid growth ? particularly in George ? has made it attractive to investors.

On Wednesday George municipality announced it would start selling 53 new industrial erven.

Two industrial areas, both easily accessible from the N2 and York Street, are almost completed in terms of roads and basic services.

Tamsui Industria, an area between York Street and Sandkraal Road, has 13 industrial erven ranging from 2 000m² to 3 000m².

The municipality is also developing the Pacaltsdorp Industria extension with 40 new industrial sites ranging from 2 000m² to 5 000m².

These erven will be available within the next four to six months.

Last week national estate agency Pam Golding opened a commercial branch in George.

"With its easy access to the N2 and airport, Pacaltsdorp Industria is rapidly becoming a major and very sought-after industrial area," said Pam Golding chief executive Peter Golding at the launch.

"We have identified the Southern and Eastern Cape as strategic growth areas, enjoying increased investment and a growing tourism market. The region also enjoys global recognition, with world-renowned golf courses, leisure estates and excellent infrastructure," Golding said. He added George had already become a key centre, experiencing growth that was attracting investors of high net worth.

Knysna, which had been sought after for some time in the leisure industry, was also becoming an important commercial hub.

"Mossel Bay is growing at a fast rate following the development of the PetroSA refinery, as well as the growth in the golf and leisure sector in the Diaz Beach and Dana Bay areas," he said.

Commercial properties in George range from R500,000 to R10-million, while average rental rates range from R25 to R30/m² for industrial space.

Rawson Properties George principal Aldo de Jager said there was big demand for property under R1-million.

However, Susan Deacon Estates commercial manager Manie Havenga said the high price of commercial properties in George was driving potential buyers away.

"I could sell to many industrialists if land in George was cheaper. Potential buyers are weighing up the cost of purchasing land and have opted to buy in Durban or Bloemfontein where it's cheaper."

Eastern Province Herald