High-end property market on the rise.
Category Property Fund News
IT WOULD seem that as 2014 heads towards a close, some sectors of the property market are enjoying something of an upswing, and others are lagging behind. “Demand for residential property is on the increase, most notably in some of the country’s most affluent suburbs. This is telling as highend buyers are usually quite knowledgeable about property investment and tend to act only when conditions favour them,” says Jaco du Toit of Park Village Auctions. He says buildings that can be converted into residential blocks are also in high demand in Johannesburg’s CBD, signalling a shift towards high density living. Demand for commercial property, on the other hand, remains stubbornly weak amid challenging market conditions that look set to remain for the rest of this year and the first quarter of next year. On the industrial and retail property front, Mr du Toit says property fundamentals are improving, but that cost containment in these sectors may prove problematic in future due to rising labour, administrative and utility costs. “It is interesting to see how the various sectors are performing. It indicates where the money is, so to speak, and which sectors are falling behind. Of course successful investment in any type of property is reliant on location, property quality and the ability to generate a sustainable rental income or long-term return on investment while economic pressure, weak consumer confidence and difficulty securing finance remain key factors.” In terms of property predictions for the first six months of next year, Mr du Toit believes that things will continue in much the same way unless some major “fireworks” take place in the economy. nPark Village Auctions recently landed an auction coup in the form of a superb 2008 Ferrari F430 Scuderia. With less than 6,000km on the clock, the Scuderia was sold for R2.3m at PVA’s October auction in Martindale.
Author: SAPOA
