Groei in woonstelhuur in gebiede soos Johannesburg, Pretoria en Kaapstad het die afgelope drie jaar min of meer met verbruikersprysinflasie (9% p.j.) ooreengestem terwyl huurgeld in Durban (12% p.j.) en Port Elizabeth (11% p.j.) selfs daarin kon slaag om effens beter as inflasie te presteer.
Growth in flat rentals, in areas such as Johannesburg, Pretoria and Cape Town, has for the past three years remained roughly in line with consumer price inflation (+9% p.a.) while in Durban (+12% p.a.) and Port Elizabeth (+11% p.a.) rentals even managed to marginally outperform inflation.
An interesting observation in recent quarters has been the acceleration in building-input-cost inflation, while building-contract-cost inflation has been decelerating.
Erwin Rode of property economists Rode & Associates has urged investors to exercise caution with industrial property, particularly in the short term.
Office- and industrial-property rentals continue to grow impressively, shows the latest issue of Rode’s Report on the SA Property Market. In spite of this, building plans approved for new office and industrial buildings are slowing down markedly.
Consensus seems to be developing amongst economists that the South African economy is going to decelerate sharply to a growth rate of about 3% p.a. over the next few years.
At a time when the world and its bankers have become more risk averse, Rode has released the second and improved issue of Rode’s Growth Points. This publication rates the investment attractiveness of 80 office nodes and 200 industrial townships countrywide.
While the slow-down in building activity in the residential sector has been expected, recent statistics for non-residential property have surprisingly shown that this sector is also now beginning to weaken.
The growth in retail sales has been losing steam for some time now, with the figures for May 2008 revealing that real sales (actual volumes of sales) were down by nearly 4% on the same month a year earlier.
A number of events have been organised by Rode & Associates to take place countrywide during the month of August, and which will address the many challenges currently facing the property market.