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Real estate Print E-mail
19 December 2009

Real estate    

Property market
Leaders in the SA property market, such as JHI, with approximately ZAR 31-billion of assets under management, see interest picking up again. Whereas one of the biggest constraints for all investments, including property, is that liquidity globally is under pressure, in SA, if you have the balance sheet to back it up, our banks are still open for business and are supportive of FDI.
Looking forward, SA is experiencing green shoots everywhere in property economics, for example GDP is turning, business confidence is making an upward turn and more positive manufacturing production volumes are coming through. This, combined with the fact that we are coming off a very low vacancy rate in the region (overseas average is 7, SA is 3), is encouraging for investment. Plus, SA does not have non-recourse debt, the bulk of properties are full title, while the rights of property owners are protected in the constitution, giving investors security.

  OVER the past 5 – 8 years, the SA property industry went through a boom. With the global recession rolling over into SA, the market is taking a breather and we’re not seeing the same growth but, importantly, we’re also not seeing a meltdown in prices. So although the market is not experiencing the same growth in capital values, discounted capital values are not coming through.

This provides investors with an opportunity to come in at a very realistic market price, unlike during the overheated property market over the previous five years.

Further, SA has a very sophisticated listed property sector, with high liquidity, providing an alternative investment option for those who do not want direct ownership of land or property.

To view results of the SAPOA / IDP South Africa Annual Property Index, click here.

For more info, visit the SAPOA website, the representative body of the commercial and industrial property industry in SA.


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Last Updated on 19 February 2010