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Bill Rawson CEO
August 18, 2017

What to do with an inherited property

in Office, Retail, Industrial, Hotels and Residential
The passing of a loved one is a difficult time, and dealing with the intricacies of inheritance while grieving is not always easy.
Tshwane Regional Mall
August 18, 2017

PIC and Isibonelo declare halfway fruition of Tshwane Regional Mall

in Office, Retail, Industrial, Hotels and Residential
The construction of Tshwane Regional Mall in Mamelodi is progressing beyond expectation.
NHRBC LOGO
August 18, 2017

Developer fined R1.6m for non-compliance

in Construction, Energy and Infrastructure
The National Home Builders Registration Council’s (NHBRC) Disciplinary Committee has imposed a fine of R1.6 million on a developer after failing to enrol residential units which were under construction at Elarduspark in Gauteng.
Jacques Du Toit Absa Hoam Loans
Aug 18, 2017

Contraction in residential building activity in the first half of 2017

Levels of building activity in the South African market for new private sector-financed housing (see explanatory notes)…
Westgate Artist impression exterior view
Aug 17, 2017

Westgate Shopping Centre to redevelop food court & add thrilling new entertainment

Westgate Shopping Centre, owned by Pareto Limited, will soon be home to brand new dining options in a refreshingly…
MCSI
Aug 16, 2017

Have big-ticket properties performed better than lower-value properties?

Some real estate investors assume that higher-value (big ticket) real estate assets outperform lower-value assets,…
Geoff Jennett Emira Property Fund CEO
Aug 16, 2017

Emira Property Fund lays the groundwork for positive performance

Emira Property Fund today reported a total dividend of 143.18 cents per share for its full-year ended 30 June 2017.
Mkuze Airport Mkkanyakude
Aug 16, 2017

Mkhuze Airport facelift to boost KZN tourism

The tourism industry is expected to grow in Mkhanyakude, KwaZulu-Natal, following a decision by the provincial…

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Featured

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  • CEO Profile: Innovation, entrepreneurship drive Mercantile Bank CEO, Karl Kumbier

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  • CEO Profile: Dealmaking and passion for property steer Laurence Rapp to Vukile Property Fund CEO position

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  • NEPI investors rubbing their hands with glee as property portfolio rakes in dividends

    NEPI investors rubbing their hands with glee as property portfolio rakes in dividends

  • Every building counts for award-winning property industry powerhouse, Marna van der Walt

    Every building counts for award-winning property industry powerhouse, Marna van der Walt

  • Fieldspace Property Management goes Green

    Fieldspace Property Management goes Green

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    Fieldspace Property Group strives for multi-generation growth

  • The most buoyant sectors in the UK property investment market

    The most buoyant sectors in the UK property investment market

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  • Urban Ocean’s ‘National Bank House’ and the historic ‘CornerHouse’ – great rental opportunities and a world-class model for inner city rejuvenation

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  • PIC and Isibonelo declare halfway fruition of Tshwane Regional Mall

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Featured Profiles

  • Urban Ocean’s ‘National Bank House’ and the historic ‘CornerHouse’ – great rental opportunities and a world-class model for inner city rejuvenation

    Urban Ocean’s ‘National Bank House’ and the historic ‘CornerHouse’ – great rental opportunities and a world-class model for inner city rejuvenation

  • CEO Profile: Dealmaking and passion for property steer Laurence Rapp to Vukile Property Fund CEO position

    CEO Profile: Dealmaking and passion for property steer Laurence Rapp to Vukile Property Fund CEO position

  • CEO Profile: Innovation, entrepreneurship drive Mercantile Bank CEO, Karl Kumbier

    CEO Profile: Innovation, entrepreneurship drive Mercantile Bank CEO, Karl Kumbier

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    NEPI investors rubbing their hands with glee as property portfolio rakes in dividends

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    Fieldspace Property Group strives for multi-generation growth

  • The most buoyant sectors in the UK property investment market

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  • New Vantage Properties concludes sale of Hyde Park’s Hutton Court

    New Vantage Properties concludes sale of Hyde Park’s Hutton Court

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    PIC and Isibonelo declare halfway fruition of Tshwane Regional Mall

  • CEO Profile: Hard work pays off handsomely for Marius Muller, CEO of Pareto Limited

    CEO Profile: Hard work pays off handsomely for Marius Muller, CEO of Pareto Limited

  • Eris Property Group announces R1, 5 Billion new development in Umgeni, Durban

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Company Profile

Dijalo Property Group

Dijalo Property Services

Dijalo Property Services was established by Saul Gumede, CPM® and Hosia Malekane who have more than 30 years combined property experience. Dijalo Property Services (Pty) Ltd is a 100% black-owned company established in 1998. The company has attracted skilled…

Property Leader

andrew costa

Andrew Costa

Andrew Costa is the Chief Operating Officer at Accelerate property fund.
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

Listed Property, REIT, Real Estate Funds

Geoff Jennett Emira Property Fund CEO

Emira Property Fund lays the groundwork for positive performance

August 16, 2017 Listed Property, REIT, Real Estate Funds eProperty News
Emira Property Fund today reported a total dividend of 143.18 cents per share for its full-year ended 30 June 2017.

Office, Retail, Industrial, Hotels and Residential

Bill Rawson CEO

What to do with an inherited property

August 18, 2017 Office, Retail, Industrial, Hotels and Residential eProperty News
The passing of a loved one is a difficult time, and dealing with the intricacies of inheritance while grieving is not always easy.

Green Building and Sustainability

Thulani Kuzwayo

Green Building Council South Africa's public sector head appointed Regional Chair of WorldGBC's Africa Regional Network

July 13, 2017 Green Building and Sustainability eProperty News
Thulani Kuzwayo, public sector managing executive of the Green Building Council South Africa (GBCSA) has been appointed Regional Chair of the Africa Regional Network – a group of Green Building Councils working to advance green building within the region.

Commercial Property Auctions

Dairy Belle CT Aerial

Dairybelle properties sold to Giant Sweets for R66 million

June 29, 2017 Commercial Property Auctions eProperty News
Following the liquidation order of Dairybelle, two Epping properties belonging to the company went under the hammer recently for R66 million. Giant Sweets was the successful bidder.

Africa, International Property News

MCSI

Have big-ticket properties performed better than lower-value properties?

August 16, 2017 Africa, International Property News eProperty News
Some real estate investors assume that higher-value (big ticket) real estate assets outperform lower-value assets, partly because there are fewer of them and they are harder to buy.

Construction, Energy and infrastructure

NHRBC LOGO

Developer fined R1.6m for non-compliance

August 18, 2017 Construction, Energy and Infrastructure eProperty News
The National Home Builders Registration Council’s (NHBRC) Disciplinary Committee has imposed a fine of R1.6 million on a developer after failing to enrol residential units which were under construction at Elarduspark in Gauteng.

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