Stalled by low levels of business confidence and weak growth in employment, strong growth in the demand for office space to rent has in recent years not been forthcoming.
The key drivers of house prices and residential rentals are showing no vigour, according to the latest Rode’s Report on the SA Property Market.
Insufficient demand for building work remains the biggest constraint to a rebound in building activity, which is stating the obvious when considering the current jaded state of the economy.
A weakening demand for office space as well as sluggish growth in market rentals are on the cards, says Erwin Rode, professional property valuer and property economist at Rode & Associates.
What is best: buy or let? This is an age-old question. In the case of commercial property, the easy answer is that it depends on your company’s expected total return on capital, also known as the weighted cost of capital or required return. This is a concept similar to opportunity cost.
The growth in industrial rentals is slowly heating up, seemingly benefiting from the lagged impact of declining industrial property vacancy rates.
The Pretoria decentralized office market seems to be suffering from a combination of weak demand and overzealous development. This statement especially applies to Centurion, one of Pretoria decentralized’s largest and most popular office areas.
’Tis not yet the season for property investors to be jolly, as property fundamentals continue to stutter. This is the prognosis contained in the latest issue of Rode’s Report on the S.A. Property Market.
Even in the face of lacklustre demand for office space, uncertain economic conditions and jaded business sentiment, the number of committed new office developments is increasing steadily.
Set against the backdrop of moderate economic activity and floundering business confidence, non-residential property fundamentals continue to struggle. This is according to property economist Erwin Rode in the latest issue of Rode’s Report on the S.A. Property Market.