The first half of 2022 has seen mixed fortunes for the South African property market. This is according to a new report by JLL, a leading professional services firm specialising in real estate and investment management.
The first half of 2022 has seen mixed fortunes for the South African property market. This is according to a new report by professional services firm JLL, which specialises in real estate and investment management.
Businesses are also not migrating to the same extent as individuals, meaning local purchasing power may be ticking up, but office demand not necessarily so, said the advisory group. Moreover, the traditional central business district in Cape Town has avoided the urban degradation associated with the likes of Johannesburg, Durban and Pretoria, for example.
Mieke Purnell, research manager at JLL, said: “Most demand has originated from the business process outsourcing sector, resulting in few fit-for-purpose premises remaining. Demand in eThekwini is almost solely directed toward these nodes, and the Durban CBD is thus experiencing historically high vacancies.
In 2021, Cape Town’s residential market was valued at R1.229 trillion . Per the Centre for Affordable Housing Finance’s Cape Town Housing Market Report 2021, 43% of all stock is categorised as luxury – valued at over R1 200 000. The entry-level segment accounts for 16% of the market, and affordable housing comprises a further 18%.
Noteworthy residential developments underway in Johannesburg include the Orlando Towers Estates development that was recently announced, the Barlow Park mixed-use estate, and the Riverwoods Office Park redevelopment. The former comprises a lifestyle estate near the iconic Orlando Towers in Soweto.