Gauteng property market is strong

DEMAND in the South African property market, particularly in the commercial property sector, is still strong and a new report released late last month shows that interest in Gauteng’s commercial and industrial property is at a record high.

Frank Reardon, MD of eProp, SA’s online commercial and industrial property portal, said Gauteng commercial and industrial property attracted the most interest.

Of the more than 100000 searches on e-Prop during the first quarter of this year, 57% of all provincial searches were directed at Gauteng, including 803 searches for Gauteng offices and a further 538 for Gauteng retail.

Opportunities are huge as Gauteng generates about 60% of SA’s gross domestic product.

The most frequently requested searches, by area and sector, are: Gauteng offices, followed by Gauteng retail, Western Cape offices, Gauteng factories, and Gauteng industrial.

The report shows that Western Cape makes up about 25% of its total property searches — followed by KwaZulu-Natal, with about 10%.

The portal is an online tool designed to support tenants looking for space, investors looking for properties and even companies looking to compare the rent they are currently paying.

Reardon said research by eProp also backed up the traffic trends. eProp’s most recent Commercial Property Confidence Index (CPCI) finds that 100% of respondents anticipate an increase in the number and value of industrial leases over the next six months. In the retail sector, 100% expect vacancies to decline over the same period.

The index tracks the sentiment of a sample of property managers, asset and portfolio managers and brokers.

Respondents rate their expectations of 10 market factors that are unique to commercial property. These include the number of leases and sales, value of leases and sales, net operating income, rental and vacancy levels, capitalisation rates and staff employed.

Article by: Ayanda Shezi - http://www.businessday.co.za