Investor interest in the Durban commercial property market is among the highest in the country, says auction house Auction Alliance.

The group says Durban - a neglected investment area previously - has experienced a turnaround in fortune due in part to its political and economic stability.

Auction Alliance CEO Rael Levitt says the companys auction sales for commercial properties in Durban grew a total 273% between 2004 and last year.

"We are finding that the interest in commercial investment properties in Durban is one of the highest in the country."

The interest in commercial property, which includes offices, retail and industrial properties, is from Durban businessmen as well as institutions, listed property funds, unlisted property funds and individuals from Johannesburg and Cape Town.

Levitt says he thinks the reason Durban's commercial property market is doing so well is the fact that it is coming off a low base compared with other parts of the country.

"Durban is in a sweet spot at the moment," he says.

"The political and economic stability has helped Durban and surrounds, and people are now taking an interest in investment properties." Levitt says the residential property market in Durban has cooled off over the past few months after exceptional growth in the companys residential auction business in KwaZulu-Natal.

However, property economist Erwin Rode of Rode and Associates says that from an "outsider" perspective it appears more as if the auction industry in SA is gaining market share at the expense of the conventional broking.

He says they do not have any evidence to suggest that Durban's commercial, industrial and retail property markets are more buoyant than the rest of the country.

Business Day
 
Publisher: I-Net Bridge
Source: I-Net Bridge