Blackheath is a notable exception to the strong land price growth and where the differential to prime nodes is around R200/sq m. It is in proximity to Bellville and the airport, enjoys good arterial access, and is in the process of initiating a City Improvement District. As such, investor interest may well grow.

JHI’s Bellville office reports that the industrial sector has reached its best growth period in 15 years. Industrial areas in the Northern suburbs have very little vacant land available for new developments, for example, Saxenburg 2 was launched two months ago and is 80% sold out with prices up 300% on December 2004 prices.

Factory vacancies are also at an all time low. This may force individuals to look at the outlaying areas like Atlantis again for industrial property. Rentals have increased in most areas with the standard increase 20 – 30%, enabling property investors to experience better returns on their investments.

JHI Bellville regional manager Kurt Gouwsventer sold a portion of Vergenoegd Wine Estate in 2002, which is to be the new development for the Dreamworld Film Studio. Transfer on the sale went through late August and development will definitely go ahead in the near future, benefiting the area of Blackheath substantially.

In addition to this he is also responsible for the sale of land to Brights Warehouse and Homechoice who purchased 6.2 and 3.3 hectares of land respectively in Blackheath. The companies will be erecting distribution warehouses of approximately 10 000sq m plus each.

Overall, the availability of land is diminishing quickly with the market commentators stressing the importance of securing strategic sites for future activities with growth reaching other regions in the Western Cape.