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Last
year, the commercial property market was affected by the recession, high
unemployment, liquidations, insolvencies and the global economy.
This year, excellent prospects are expected in the local commercial property
market. Marna van der Walt, chief executive of retail management property
services group JHI, predicted last year that in 2010 there would be positive
economic growth in South Africa, with inflation falling to within the
target range, a change in banks' lending criteria, improved business confidence
and an upturn of the global economy.
Norman Raad, from Auction Alliance, said that the driver behind this
positive sentiment is a direct result of the huge targets set for all
the major bank commercial property finance teams.
Last year, the majority of banks were cautious about lending as they
tried to manage their bad debts, said Raad. As a result, the lending criteria
have changed and access to loans has become more challenging. For this
reason, clients are going to need to come up with more equity at a slightly
higher lending rate than before. But the outlook remains positive for
the year ahead.
"For the past few years, we have seen demand exceed supply, but
this will soon change. If you are thinking of investing in the property
market, now is the perfect time - the more cash you have available, the
more opportunities will come your way," said Raad.
And it seems that there will be an abundance of investment properties
to choose from next week.
On Thursday, February 25, Aucor is promising an exciting investment property
auction. Office blocks, a luxury Sandton apartment and a residential block
are on offer.
A prime opportunity is a state-of-the-art day spa in Fourways, which
will be sold as a going concern. It has a significant existing client
base and has up-to-date equipment.
On February 24, Bidline is holding a multi-purpose property auction.
It will sell hotels, residential and business buildings, and a trout farm
in Dullstroom.
Raad predicts "a bounce after the flat markets experienced during
2008 and 2009. All the necessary property fundamentals are there, and
if the banks begin to write new business and the rates remain unchanged,
we are in for a good run, even after the World Cup".
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