Improvement in the property market...
Category Statistical
The SAPOA/IPD South African Biannual Property Indicator reveals a moderate improvement in the property market for the 6 month period to June 2012, but we are certainly nowhere near a full-blown recovery across the sector. Property investment overall delivered a total return of 5.9%, comprising 1.5% capital growth and 4.4% income return.
The good news for this month is that the Ballito office vacancy rates have steadily improved over the first three quarters of 2012.
Offices Total Area Q1 Vacancy Q2 Vacancy Q3 Vacancy
A Grade 11745 26% 19% 18%
B Grade 12102 32% 38% 22%
C Grade 2650 19% 15% 19%
Vacancy rates for mini factory and industrial space at the end of Q3
Size Total Area Vacant %
100 – 199 m2 21797 2105 10%
200 – 499 m2 21298 6512 31%
500 – 999 m2 15572 1688 11%
≥ 1000 m2 16130 3050 19%
The recent Tenant Property Network (TPN) commercial rental monitor also indicates an improvement in rental payment patterns for the second quarter of 2012. 61% of tenants paid their rent on time, 22% paid late, 10% made a partial payment and 7% did not pay their commercial property rentals. The 83% of tenants who are in good standing reflect the highest percentage recorded over the past 2 years, and the 7% who did not pay reflect the lowest statistics on record to date which is a 16% improvement since the 4th quarter of 2010.
Author: Louise Gibson
