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Jacques Du Toit Absa Hoam Loans
January 20, 2017

Continued subdued residential building activity up to late 2016

in Office, Retail, Industrial, Hotels and Residential
Building activity with regard to new private sector-financed housing in South Africa (see explanatory notes) remained much subdued in the first eleven months of 2016 compared with the corresponding period in 2015, based on data published by Statistics South Africa.
John LoosFNB
January 17, 2017

The buy-to-let picture remains one of mediocrity, and primary residential demand is king

in Office, Retail, Industrial, Hotels and Residential
In the 4th Quarter 2016 FNB Estate Agent Survey, buy-to-Let demand was a little slower than the prior quarter, keeping the level of recent years “moderate” by pre-2008 boom time standards, and our estimates point to little in the way of growth in secondary property ownership.
Graeme Katz IAPF CEO
January 16, 2017

Investec Australia Property Fund increases its exposure to New South Wales

in Office, Retail, Industrial, Hotels and Residential
Investec Australia Property Fund (“IAPF” or the “Fund”) is pleased to announce the acquisition of 2 Richardson Road, North Ryde (“North Ryde Property”) and 20 and 24 Rodborough Road, Frenchs Forest (“Frenchs Forest Property”).
Deirdre Opperman
Jan 16, 2017

Property in Demand on Robert Broom Drive, Krugersdorp

Robert Broom is one of the main arteries that runs through Krugersdorp in the Westrand, crossing through Noordheuwel,…
Coopers Square Mall Entrance REVD AFTER no logo
Jan 13, 2017

Next to relocate to former BHS store in Burton

National fashion retailer Next is set to treble in size in Burton upon Trent when it relocates to the former BHS store.
John LoosFNB
Jan 09, 2017

2016 represented further average house price growth slowing, moving into negative…

The FNB House Price Index for 2016 as a whole rose by 5%, slower than the 7.2% and 6.5% for 2014 and 2015 respectively.
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Hilton (NYSE: HLT) (www.Hilton.com) has signed a management agreement with Group Sadiki (www.GroupSadiki.com) to open…

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Property Leader

nicolle_weir

Nicolle Weir

Nicolle Weir is the Operations Director of Sub-Saharan Africa at Bounce Inc.
Wednesday, 20 March 2013 12:37

Office space under pressure in year ahead

Written by [email protected]
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Property pundits agree that office property will remain the problematic sector in the next 12 to 18 months with dominant retail centres likely to be the best performers.

Vukile Property Fund CEO Laurence Rapp believes that — consistent with last year — the market will continue to "see the office property sector under pressure".

While Rapp believes the performance of the industrial property sector will continue to improve, retail property will continue to be "the preferred asset class given its growth potential but inherently defensive nature".

Redefine Properties CEO Marc Wainer believes the pressure in the office property sector will be particularly felt in the older B-grade property arena. Wainer says it becomes much more difficult to let B-grade space in the current market because newer A-grade rentals are flat. This results in A-grade rentals being more affordable and consequently there is less incentive for prospective tenants to move into B-grade space.

As for new office property space being developed, Wainer says: "Anything being built now is being built specifically for tenants." He says there is little in the way of premium office properties coming onto the market on a speculative basis.

Redefine is, however, developing a 20,000m² office building in Sandton.

Wainer says retail property is "still pretty strong, particularly in the larger centres", adding: "We’ve seen major retailers are still doing well, expanding their retail footprint."

He says industrial property is strong and there are good signs in distribution warehousing.

Growthpoint CEO Norbert Sasse says he sees the office property market remaining the weakest of the property types in the next 12 to 18 months, especially given the muted economic growth outlook in Finance Minister Pravin Gordhan’s 2013 budget. Gross domestic product growth at about the 2.7% level is predicted for 2013.

Sasse also warns the market is seeing a slowdown in consumer spending, which will have a potentially negative effect on the retail property sector.

"However, we are confident the retail sector will continue to provide above average returns for the next 12 to 18 months."

As far as industrial property is concerned, he says there seems to be "mixed signals coming through the economy with manufacturing output coming lower than expected".

Sasse believes this, together with labour unrest in the mining sector, could also "pose some challenges for the industrial sector. However the fact that national vacancy levels in the industrial sector are at the 3% to 5% level suggests that there is no major oversupply of space. We are confident about the industrial property sector."

Source: BD

Nedbank Property Finance is a market leader in commercial property finance, enabling you to realise your property opportunities through a diverse range of financing solutions.

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Office, Retail, Industrial, Hotels and Residential

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Africa, International Property News

Adrian Horsburgh Redefine International

Redefine International lets remaining space at City Point, Leeds

January 09, 2017 Africa, International Property News eProperty News
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