SURGE IN RESIDENTIAL DEMAND FUELS STRONG DEMAND FOR COMMERCIAL PROPERTY IN BOLAND & OVERBERG

Posted On Wednesday, 27 August 2003 02:00 Published by
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The exceptionally strong demand for residential property in the Western Cape 's Boland & Overberg region is impacting extremely positively on the commercial property market, reports Chris Immelman, who heads up the broking division of Golding Commercial Properties.
SURGE IN RESIDENTIAL DEMAND FUELS STRONG DEMAND FOR COMMERCIAL PROPERTY IN
BOLAND & OVERBERG

The exceptionally strong demand for residential property in the Western Cape
's Boland & Overberg region is impacting extremely positively on the
commercial property market, reports Chris Immelman, who heads up the broking
division of Golding Commercial Properties - a member of the Pam Golding
Property group.

"The tremendous surge in demand for homes in the Helderberg Basin in areas
such as Stellenbosch, Gordon's Bay, Somerset West and Paarl is significantly
boosting the increasing demand for commercial property - particularly in
regard to the leasing and sale of office and retail space.

"This rapidly increasing take up of office and retail space also forms part
of a noticeable general trend towards people wanting to move out of busy
major centres into a more countrified atmosphere and more desirable
lifestyle where they can live, work and enjoy recreational activities - all
in close proximity," he says.

Immelman adds that the demand for commercial property is mainly from local
individuals and businesses in the Western Cape region as well as from
Gauteng and the Free State.

Eugene Muntingh, a former Northern Transvaal and Western Province cricketer
who has been active in the Boland & Overberg commercial property market for
the past 20 years, and who was recently appointed regional sales manager for
Golding Commercial Properties, says overseas investors are also showing
increasing interest, with enquiries mainly from UK and German buyers wishing
to invest in fully tenanted property in the price range from R5 million
upwards.

"Locally there's a high demand for retail property investments - mainly
neighbourhood centres of around 2 000sqm with a strong anchor tenant and in
the R3-R5m million price range, with yields of around 14 percent on capital.
Sectional title units of around 250sqm and priced from R1 million are also
increasingly in demand among owner/users."

Muntingh says commercial developments such as the rapidly expanding upmarket
Techno Park in Stellenbosch and the AECI mixed use development near the
Somerset Mall have met with an extremely positive response from the market.
At Techno Park GCP has just let 400sqm of office space, with a total capital
value of approximately R900 000, to Momentum Life.

"At Techno Park office development Triple A grade hi-tech office space with
exclusive specifications and installation allowances is available in the
region of R80 per sqm, while quality B grade space is available from
approximately R40 to R50 per sqm.  In Somerset West office space is priced
at around R35 to R45 per sqm, and from R55 to R65 at Somerset Mall.  This
represents good value for money particularly when compared with office space
at Century City, for example, which is being marketed at R75 per sqm.

"In terms of retail accommodation rates vary considerably according to
location - from around R90 to R120 per sqm in the centre of Stellenbosch -
where such space is hard to find, from R50-R60 per sqm in the main road in
Somerset West to around R75 per sqm upwards in central Paarl," he adds.

Ends


Issued by Gaye de Villiers
Tel: 021 6837788 or 083 325 1939
On behalf of Golding Commercial Properties

Publisher: Gaye de Villiers
Source: Golding Commercial Properties

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