The Industrial Sector

It is worth pointing out that from a macroeconomic perspective, the industrial property market may be negatively affected by the declining level of exports. From 11% real growth in 1996, Nedcor reports that exports grew by a very low 0,4% in 1998.

The Retail Sector

As a national context, it is important to note that private consumption dropped from 2% in 1997 to 1,1% in 1998 and is not expected to grow more than 0,5% to 1% in 1999. The split of private consumption expenditure in 1998 indicates that demand for durable goods, such as appliances, dropped by almost 5,5%.

The Office Sector

Perhaps the major news currently in the market about the Johannesburg CBD is the sale of the Carlton Centre, which is tipped to become a major corporate head office. While final details are still to be released to the marketplace, it is expected that the new tenant will be enjoying the benefits of an attractive rental differential.

Gauteng drives the South African economy, contributing some 38% of the national Gross Domestic Product (GDP). The province’s economic activity is mainly centred on the greater Johannesburg area, which includes the eastern, western, northern and southern metropolitan local council regions.

Despite tight economic business conditions for the first half of 2000, the property market in South Africa has been stable - office vacancies have been declining marginally since December last year, industrial rentals appear to be moving out of the doldrums, and retail development sentiment continues to remain positive. With positive and improved economic prospects in 2001, the property market is set to improve significantly.