The property investment market seems to have realigned with the new interest rates, and sellers are becoming more realistic as the cost of money rises, The Alliance Group says.

“This has created opportunities. We have noticed many more buyers who have been waiting for this shift — from a seller’s market to a buyer’s.

“New market entrants who have realised some wealth creation during the past couple of years believe that the window of opportunity is now, as the fundamentals with regard to property rentals are good with value to be unlocked in the commercial and industrial sectors.”

The group say rentals in commercial office space are going to grow as building prices soar and vacancies are limited.

The B and C grade industrial market has a long way to go to reach the highs of new development rentals. In the retail sector, the smaller neighbourhood retail centres will be least affected, as the lower rentals will be a lifeline in this tightening economy. The demand is as strong as ever for centres in affordable strips.

This month, Alliance Group offers a variety of properties on auction, such as retail centres, commercial buildings and residential blocks.

Source: Business Day