Growth in SA commercial property returns stagnated in the first half of 2011, due to the slowdown and uncertainty in the local and global economy.
In Marshalltown in the heart of the Johannesburg CBD, Cape Towers, a 19 storey commercial property will be auctioned on 27 October at the Hilton Hotel in Sandton. The property will be sold on the basis of vacant occupation and offers buyers and investors a prime development opportunity.
According to the South African Property Owners Association (Sapoa) and International Property Databank (IPD) South Africa Biannual Property Indicator, property delivered a 4.3 percent total return in the six months to June.
Rental income provided the only return to investors at 4.3 percent, while at an aggregate level the market recorded zero capital appreciation.
The report revealed that some sectors of the market still provided glimmers of growth. Retail property remained resilient, managing to produce 0.4 percent capital growth in the six months.
Offices posted just 0.1 percent capital growth with the overall sector returns adversely impacted mainly by the performance of inner city offices.
The industrial sector with the exception of high-tech industrial property, suffered a contraction in capital growth of -1.5 percent, making it the worst performing of the three main sectors.
Sapoa/IPD report states that there now appears to be a general loss of momentum in growth of South African commercial property returns and contractions in some sectors.
Of the three main provinces, Gauteng produced the highest office returns, the strongest retail returns were in the Western Cape and Kwazulu-Natal had the best performing industrial market.
Whether commercial properties being auctioned countrywide is indicative of what is suggested by the Sapoa/IPD report remains to be seen.
Auctioneers seem to be busy lately with vast amounts of commercial properties hitting the auction floor giving serious investors an opportunity to buy at good prices.
Auction Alliance will later this month hold a massive commercial auction in Sandton, Johannesburg and Century City in Cape Town.
In Marshalltown in the heart of the Johannesburg CBD, Cape Towers, a 19 storey commercial property will be auctioned on 27 October at the Hilton Hotel in Sandton.
The property will be sold on the basis of vacant occupation and offers buyers and investors a prime development opportunity.
Situated at 11 Mclaren Street, the property forms part of the Anglo American precinct in the CBD, home to a number of properties owned by the Anglo American Group.
Anglo American is currently involved in expansion plans for the modernisation of their entire Johannesburg Campus.
The property extends over an approximate GLA of 5.511 square metres and comprises of office space and 80 parking bays.On 26 October, a modern industrial building in the industrial node of Paarden Eiland will be auctioned at the Crystal Towers Hotel and Spa in Century City. The three storey property located on 21 Natal Street, it features double volume warehouse industrial space, office and showroom space.
Auctioneer, Gareth Botha says Anglo American’s expansion plans within the area are anticipated to have a significant impact on the overall renewal of the area.
He explains that the property’s prominent location within the precinct and the fact that the building lends itself to a variety of possible uses, including 150 residential apartments or up-market office space, makes it a highly lucrative investment opportunity.
On 26 October, a modern industrial building in the industrial node of Paarden Eiland will be auctioned at the Crystal Towers Hotel and Spa in Century City.
The three storey property located on 21 Natal Street features double volume warehouse industrial space, office and showroom space.
It extends over an approximate GLA of 2 150 square metres with an operational lift in place and onsite parking.
The property is described as extremely high end and suitable for distribution and showroom purposes of high end goods.
A government tenanted commercial property which comprises of retail and office space as well as a service station will be auctioned on 27 October at the Hilton Hotel in Sandton.
A government tenanted commercial property which comprises of retail and office space as well as a service station will be auctioned on 27 October at the Hilton Hotel in Sandton. Station Square in Clarina, Pretoria North in Gauteng produces a gross annual income of R11 219 087 38. Tenants in the building include the Department of Public Works, Sasol, Shoprite U-Save and the Metro Police.
Station Square in Clarina, Pretoria North in Gauteng produces a gross annual income of R11 219 087 38. Tenants in the building include the Department of Public Works, Sasol, Shoprite U-Save and the Metro Police.
According to Auction Alliance, the property is easily accessible from main arterial routes such as the R80 and Pretoria CBD. It extends over an approximate GLA of 21 331 square metres.
In Century City, a three storey commercial property in Zonnebloem will be auctioned on the basis of vacant occupation.
The property is situated at 28 Sir Lowry Road, on the periphery of the CBD with 980 square metres of GLA.
The property offers a three storey warehouse with street front retail space, office and warehouse space.
Auctioneer, Gareth Currie says based on the high demand for commercial properties on the outskirts of the CBD, this property is an excellent investment opportunity for the owner occupier looking for quality space within close proximity to the City Bowl.
He adds that the property is estimated to fetch between R4 million and 5 million. – Denise Mhlanga
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