Property market ups, downs
It's something of a mixed bag for the property market at present, says Park Village Auction's (PVA) Jaco du Toit.
Picture: Supplied.
“On the industrial front, things seem to be improving to a degree as new buyers, in particular SMMEs, enter the market as owner-occupiers. There is a distinct trend in this direction as would-be tenants are tired of having to deal with onerous rental hikes and the risk of being evicted if the building they occupy is sold or a more prominent tenant wants the space,” he notes.
The upshot is that small warehouses and factory space measuring between 500m2 and 2 000m2 are currently in fairly high demand which in turn is driving up values in this sector, particularly in Johannesburg’s CBD.
Things are not so rosy for the office sector which appears to be struggling with a stubbornly high vacancy rate. Weakening output growth coupled with low business confidence is supressing demand for office space, according to Du Toit who believes that conditions in this sector won’t really improve in the short term.
In terms of residential property, analysts report seeing stock shortages for the first time in many years in some suburbs and say indications point to improving housing demand. “Of course it remains to be seen how the property market in general will perform going forward. Insolvencies are up and, according to BankservAfrica’s Economic Transaction Index, consumers are struggling to pay monthly expenses.”
For further information, contact Park Village Auctions on 011-789-4375 or go to parkvillageauctions.co.za.
