While there have been improvements to the fundamentals of most South African property sectors and markets, Durban stands out in terms of it growth potential and bold new developments in JHI Real Estate’s South African Property Report for 2004.

The Point, Wilson’s Wharf, the Sun Coast Casino, further upgrades to the International Convention Centre and the port of Durban, the R700-million uShaka Island Marine Park, and the high level of investment at the Umhlanga Ridge area and the Riverhorse Valley Business Estate, are all seen as pointers to the health of the local economy with spin-offs for the commercial property market.

On the retail front, Kwazulu Natal commanded the highest investment into retail property in 2003, according to JH!’s research. This investment increased 63% on 2002 levels, with Durban retail investment increasing by more than R280-million over the same period. By contrast Pretoria saw the least amount of retail property investment in 2003.

The report claims that one of the most important trends for property that emerged in 2003 was the growth in confidence levels of high income earners, reaching its highest level in eight years.

Notwithstanding this consumer confidence, there are still vast areas of untapped mass-market retail potential, says Rob Moran, regional director of JHI Kwazulu Natal.

He believes that the outlook for the retail environment, from the consumer demand side, over the next two years remains buoyant.

Moran adds that there is still lots of interest from investors, with centres such as Overport City Shopping Complex, Windermere Centre and the Southway Mall trading hands.

Moran is also very positive about the work iTrump are doing in the Inner City of Durban. "There is an improvement in the general housekeeping of the Inner City and aspects such as new street signs and so on are making an impression."

JHI’s report refers to the fact that at least 40 major buildings of the 90 identified by iTrump, have recently been repainted and more is expected in line with the CBD being the focus of the national Urban Development Zone Tax.

On a more somber note, notwithstanding the abundance of positive sentiment in the inner city, property indicators suggest that notable improvements are still to filter though. Overall vacancies remain high and rental levels have kept pace only in nominal terms over the past few years. Overall annual take-up also remains weak.

Turning to the industrial market, the report highlights the growth at Maydon Wharf and Springfield Park. An increase for owner-run operations is also positively impacting demand in areas such as Pinetown, Westmead and New Germany. Westmead Industrial Park, for example, has grown almost three-fold over the past four years and is now home to several major industries attracting a growing number of people moving to the Pinetown area.

Moran confirms that JHI records show that landlords are increasingly achieving their asking rentals. He upholds the view that, in turn, this is likely to make new industrial developments more viable in the short to medium term.

ends

Issued by:    Kerry Osborne, Marshall Inc, 193b Lambert Road, Morningside, Durban, 4001, Tel No: (031) 303 9723, Fax No:                         (031) 312 9497, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.