Rode’s property news
Historically, some metros have produced better flat-rental growth than others — that is, in the short to medium-term at least.
Collectively, nominal grade-A office rentals in Durban’s decentralised office locations were up by 20% during the final quarter of 2006, while Cape Town decentralised managed only a pedestrian 5%.
Some buyer types are willing to pay more for a property — that is, buy at a lower capitalization rate — than others. Thus, the identification of the typical buyer is an essential first step in valuing a property.
The strong growth in office-building plans passed during last year is a clear sign that developers perceive demand to be strong and expect it to remain so in the foreseeable future.
Developers clearly expect South Africans to continue shopping like crazy if the 637.294m² in retail floor space to be completed during 2007 — which is some 20% up on 2006 — is anything to go by.
Strong economic growth and rising building costs and low vacancy rates ensured that the industrial property market kept up its grand performance during the last quarter of 2006.
The vacancy rate of prime-quality decentralised office space was down to 3,7% in the last quarter of 2006, from its high of 12% in 2003.
With property prices having soared over the last few years, it is understandable that home-owners are concerned that municipal property taxes will skyrocket with the next municipal valuation of their home.
In a landmark transaction, Absa bank recently bought 11 Diagonal Street in the run-down Johannesburg CBD for R104 million. It paid a further R20 million for the nearby West Street parkade.
If you invested in a rental unit in Toronto, Canada, you can expect an income return of about 4% in the first year, assuming the investment is not financed.
The growing wealth in South Africa’s leafy suburbs is now definitely trickling down to lower-priced neighbourhoods, including townships.
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