2014 Design capital ( Cape Town )

April 24, 2012
This morning I attended a SAPOA breakfast in Cape Town. One of the speakers was Bulelwa Makalimia Ngewana of the the Cape Town Partnership .  She gave an interesting synposis of the Cape Town bid to become the design capital capital in 2014.  What was interesting is that the Cape Town Bid revolves around people and design , unlike what the other competitors - namely Bilbao and Dublin are saying .  And she was  right in underlining that we often pay insufficient attention to design when  developing infrastructure and housing  - especially when providing infrastructure and housing for the poor. While it can be argued that winning such a bid is not critical to Cape Town and that we have other priorities , there is a strong argument to suggest that it would play an important role in bringing home the view that  good urban design improves lives  .  I am sure that creating well designed suburbs plays a role in creating happier places  - and if that is so, winning the 2014 race is important .  

Have a look at the website. http://www.capetown2014.co.za/

Francois
 

Investment property data Bank ( IPD )

April 10, 2012
The Property Investment data bank ( IPD ) has released the returns for the South African property Sector in 2011. It shows that total returns have declined to 10.5%, compared to the the 13.3% rcorded in 2010. The industrial sector continues to outperform  the market with a return of 11.9%. What is possibly of greater importance is that the difference in returns between the sectors has become marginal with the industrial , office and retail sectors recording .11,9%, 11.2% and 10.1% respectivel...
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South African Reserve Bank ( Quarterly)

September 14, 2011
The latest Soouth African Reserve bank bulletin  has provided a gloomy picture of the SA Economy.  Consumer expenditure is slowing and the construction sector is under significant pressure. Numerous government driven prohjects are not seeing the light. As a result it is becoming increasingly probable that the SA Reserve Bank will leave interest rate sunchanged in the short run. The possibility of a decline in interest rates is also becoming a possibility by year end.  Generally these conditio...
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PROPERTY IN A DOUBLE DIGIT VACANCY RATE OFFICE ENVIRONMENT

October 13, 2010

The  vacancy rate is probably the closest that the property market has to a coincident indicator.  The recently published SAPOA vacancy rates suggest that the South African office market remains weak and that rentals will remain under pressure in 2010.

Of the twenty Johannesburg nodes measured by the SAPOA only six nodes showed an improvement in vacancy rates in the past quarter.  These include Bedforview, Constantia Kloof, Houghton, Melrose and Randburg.    But in general the conditions ...


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A YOUTHFUL PROPERTY MARKET ON STEROIDS

October 6, 2010

The Dubai property has a seen a decade of phenomenal growth, with the amount of commercial and residential space more than doubling every year.  Easy finance, the availability of land, and a conducive regulatory environment provided the steroids for a property boom. But, things changed in 2009. Approximately half the planned projects have been put on hold and estimates suggest that there is sufficient stock to meet take-up for the next decade.

While this slow down can be blamed on the global ...


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Johanneburg Inner City Retail Rentals At R2'000 sqm

September 25, 2010

If you think   that rentals  are high  in the standard South African Shopping centre , consider  retail rentals on the corner of Jeppe Street and Delvers Street in the Johannesburg CBD .

A recent  workgroup  co-ordinated  by  Hannah Le  Roux and sponsored by the Goethe  Institute  considered the dynamics around  certain  buildings in the Johannesburg inner city . What is interesting about these  buildings  is that they are  primarily let to  Ethiopian  retailers – in a sense creating an i...


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Does the interest rate cut matter for the South African property market ?

September 9, 2010

It is unlikely that the decision by the South African Reserve bank  to lower the repo rate by 50 basis point will have a significant  impact on the South African commercial property sector. Recent residential property data provided by ABSA and FNB suggest that the rise  in residential values has stalled and that  the sector  could  be  experience a double dip.The  commercial property sector continues to suffer from high vacancy rates, and  property owners are finding it difficult to secure re...

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The SA housing market is entering a double dip

September 2, 2010

There are strong indications that the South African housing market is entering a douple dip.  FNB has just released its August  2010 House price index whcih indicates that  the year-on -year growth in housing prices has declined to 7.2% compared to 10.1% in July. The report also makes the important point that  while the nominal increase is weakening , property prices are showing strong real growth - but that reflects a declining inflation rate scenario rather than the strength  of the propert...


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Decline in interest rates

September 1, 2010
There are clear indications that  SA interest rates will start to decline. This bodes well for the SA property market in general. In particular it should encourage retail expenditure. We remain of the view that the retail sector will come ouot of recession first, followed by the industrial and and office sectors. 

Francois

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