Nationally, the growth in house prices continues to be undermined by its underperforming key drivers.
A highlight on the calendar of the South African property industry, the annual conference jointly organised by renowned property economist Erwin Rode of Rode & Associates and Real Estate Investor Magazine, will take place in Johannesburg on 27 September and in Cape Town on 29 September.
Property valuation firm Rode & Associates, has been honoured with top awards from the authoritative publication Professional Management Review (PMR.africa) in this year’s PMR.Africa rankings. The company received the Diamond Arrow Award in the following categories: Retail Valuations; Commericial & Industrial Valuations; Residential Valuations and Specialised Valuations. Rode was rated highest in each of those categories. The company also received the Golden Arrow Award in the Municipal Valuations and Agricultural Valuations categories.
The Pretoria decentralized office market continues to suffer from the aftermath of overzealous development coupled with weak demand for space to rent. This statement especially applies to Centurion, one of its largest and most popular office areas.
For now, the current cooling in the growth of retail sales volumes and contracting import volumes do not bode well for the demand for warehouse space to rent, and consequently market rentals.
The leading business-cycle indicator continues to signal that even weaker economic activity should be expected, which bodes ill for the housing market.
Prime office vacancy rates in Cape Town decentralized are at their lowest level in more than seven years.
Prevailing weak and low levels of business sentiment are set to keep the demand for industrial space at bay, and the outcome of this will be continued moderate growth in market rentals for industrial space.
Until there is a significant turnaround in the performances of the manufacturing and retail sectors, strong growth in industrial market rentals cannot be expected.
Nationally, office vacancy rates are finding it hard to drop. And, given the under-performance of important drivers of office demand, a sudden improvement in office vacancy rates should not be expected.