Business Day Reporter

THE sixth annual property investment conference to be hosted by commercial property association Sapoa and Investment Property Databank next month will focus on issues such as declining world investment conditions.

The conference, on August 7 8 at the Pavilion Conference Centre at the Victoria & Alfred Waterfront in Cape Town, carries the theme Opportunity in Uncertainty and includes key

Clur says the “tightening noose around the neck of the consumer and developer” is not likely to “loosen” until late next year, when conditions are expected to show signs of easing.

Clur says an important signal for investors is that the retail property market was the weakest sector in the IPD’s global property index last year.

The index surveys 22 countries and points to ebbing consumer confidence in the UK and US as key factors.

Clur says retail development pipelines are coming under increased pressure as construction cost hikes eat into developer profits, and financing becomes more pricey.

“None of the inputs into the development process are expected to decrease in the next 12 months. And that threatens the feasibility of many potential retail developments in a very real way,” she says.

Key says the world market is “seeing a seismic shift to higher inflation and interest rates”.

Source: Business Day