Rode’s property news
The property markets across the board are still in hibernation mode, according to the latest Rode’s Report on the State of the Property Market.
Some cause for optimism for shopping-centre landlords has been the recovery in retail sales volumes over the past few months.
The effect of the economic downturn on market rentals has now become strikingly evident.
Overall, the growth in market rentals for office space is still weak. According to the latest Rode’s Report on the SA Property Market, this is especially evident in Cape Town (6%) and Johannesburg (4%) decentralized, where rentals were, on average, lower than what they were a year ago.
The effects of softer economic activity on the demand for industrial space to rent, and consequently market rentals, are becoming strikingly evident.
In spite of the technical emergence of the economy out of the recession, the latest Rode’s Report on the Property Market (quarter 2009:4) reveals that rental markets in particular continue to feel the pinch of weak economic conditions across the commercial, industrial and residential arenas.
While property’s PR machine may have started talking about green shoots appearing, the facts reveal that the brakes − in terms of the growth in market rentals − are being applied more firmly now. This is according to data revealed in the latest Rode’s Report on the SA Property Market.
Even as the income streams of listed property funds are still showing fairly robust growth, softer direct-property fundamentals will most likely hinder future distribution.
Industrial rental growth in all of the major industrial conurbations is fizzling out, with growth in stand values following suit.
There are many optimists out there who predict that house prices will start to recover by the end of 2009. Let’s think this one through.
Good news in the latest Rode’s Report is that office rentals have, thus far, remained fairly resistant to the scourge of the economic slowdown.
Want to stay informed?
Subscribe to our free newsletter, the "Rode Review"