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w w w . r o d e . c o . z a
Rode’s Report
2018:3
Listed property companies under the cosh • O�ce rentals weaken • Industrial rentals shine • House prices disappoint • Cap rates mostly unchanged
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Editor-in-chiefErwin G. Rode
EditorKobus Lamprecht
Survey administrator Samantha Harkers-Kies
Advertising Lynette Smit 021 946 2480
Subscriptions Juwayra Januarie021 946 2480 Annual subscription: 4 issues: R5.700,00 (excl. VAT)
Published byRode & Associates (Pty) Ltd. Reg. No: 2009/005600/07 PO Box 1566, Bellville 7535 Tel. 021 946 2480 Fax 021 946 1238E-mail: [email protected] Website: www.rode.co.za
Cover illustrationKonrad Rode082 446 6526www.capetowncartoonist.com
PrintingShumani Mills Communications083 270 [email protected]
© Rode & Associates (Pty) Ltd., September 2018. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. While all reasonable precaution is taken to ensure the accuracy of information, Rode & Associates (Pty) Ltd. shall not be liable to any person for inaccurate information or opinions contained in this publication. Portions of this report may be reproduced for legitimate academic or review purposes provided due attribution is cited.
Vol. 29 no. 3
Erwin G. Rode(editor-in-chief)
Kobus Lamprecht(editor)
Rode’s Reporton the South African Property Market
2018:3
iRode’s Report 2018:3
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Rode staff
Erwin RodeBA, MBA (Stell): CEO
Kobus LamprechtBCom (NWU), BComHons and MCom (NWU)
Berchtwald RodeBA (Stell), MTRP (UOFS)
Juliana DommisseBEconHons (Stell)
Karen E ScottBComHons (Stell), BComHons (UCT)
Monique VernooyBTech(QS), NDREES (Unisa), MSc (UCT)
Tobi RetiefBA (Stell), NDREES (UNISA)
Madeniah JappieBScHons (Property Studies) (UCT)
Stephan van der WaltMA (Stell)
Marlene TighyBSc (Wits) Hons (OR) (RAU), MBL (UNISA), Pr Sci Nat
Janelle Van HarteParalegal (School of Paralegal Studies)National Diploma in Real Estate (CPUT)
Samantha Harkers-KiesND: HRM (CPUT)
Lynette Smit
Elizma Hawksley
Juwayra Januarie
Abigail Van Wyk
Shimonay Jonas
Rode’s Report 2018:3 Rode staffvi
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Contents
State of the property marketState of the property market in quarter 3 of 2018 1
Capitalization rates3Cap rates more or less unchanged
How to estimate capitalization rates – anywhere 14
Listed property Listed property companies under the cosh 17
Office rentals, operating expenses, and office demand & vacancies
21Office rentals weaken Vacancy rates remain high 44
Industrial rentals and vacancies and industrial stand values
63Industrial rentals shineStand values still going strong 94
Residential market118Flats market
House prices disappoint 146
Building activity & building costsPoor prospects for building activity 149
Rode’s Report 2018:3 Contentsvii
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26
78
10 11 12
13 18
Table 1.1: Rental performance in quarter 2018:3Table 2.1: Prime industrial leaseback escalation rates Table 2.2: Survey of capitalization rates (%): Office buildings Table 2.3: Change in capitalization rates (%): Office buildings Table 2.4: Survey of capitalization rates (%): Industrial buildings Table 2.5: Change in capitalization rates (%): Industrial buildings Table 2.6: Survey of capitalization rates (%): Shopping centres Table 2.7: Change in capitalization rates (%): Shopping centres Table 2.8: Survey of capitalization rates (%): Street-front shops Table 2.9: Change in capitalization rates (%): Street-front shops Table 4.1: Asset class performance: Total returns Table 4.2: Annual total returns on listed property funds to
September 2018 Table 4.3: Change in distributions for half- and full-year ended
June 2017/18, as well as 2019 guidance 2024
25
323538414754636566
buildingsTable 5.4: Typical rent-free period in months Table 5.5: Market parking rentals Table 5.6: Office rental escalation rates on new leases (%) Table 5.7: Escalation rates on operating costs Table 6.1: Sapoa office vacancy factors (%) Table 6.2: Sapoa office stock (m²) Table 6.3: Sapoa new office developments Table 7.1: Pioneer industrial rentals Table 7.2: Mean prime industrial market rentals Table 7.3: Standard deviation from mean prime industrial
78 market rentals Table 7.4: Predominant market escalation rates (%) for industrial
leases 92
Tables
Rode’s Report 2018:3 Tablesviii
109
19
Table 5.1: Pioneer office rentals
29
Table 5.2: Market rental rates for office buildingsTable 5.3: Standard deviation of market rental rates for office
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Table 7.5: Indicative operating expenses for industrial buildings
96108
118119128137147
148
Table 8.2: Mean market values for industrial stands Table 8.3: Standard deviation for industrial stands Table 9.1: Flat vacancies as in quarter 2018:3 Table 9.2: Flat rentals: standard-quality block of flats Table 9.3: Flat rentals: upmarket-quality block of flats Table 9.4: Flat parking rentals Table 10.1: Change in nominal house price by metros Table 10.2: Change in nominal house prices in Cape Town by
areaTable 10.3: Change in nominal house prices in Johannesburg
Table 11.1: New non-residential buildings (private sector)(m²) Table 11.2: New residential buildings (private sector)(m²)
148
TablesRode’s Report 2018:3 ix
95Table 8.1: Sensitivity of land value to changes in rent
150151
by area
93
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Annexures
Rode’s Report 2018:3 Annexuresx
Annexure 1
Glossary of property terms and abbreviations I
Annexure 2
Technical background to the Rode surveys IX
Annexure 3
How to interpolate industrial rental rates and land values XII
Annexure 4
Approximate building cost rates as at 1 July 2018 XIII
Annexure 5
Monthly forecast of Haylett by MFA XIX
Annexure 6
BER Building Cost Index XX
Annexure 7
Prime overdraft rate at month-end (%) XXI
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Panellist codes
Rode’s Report 2018:3 Panellist codesxii
Code Company Telephone number
ABA 0123455555 ACU 0825574768 AI 0123483720 AKW 0837002675 AM 0115109780 AN 0214657780 ANV 0872348000 AP 0112341144 AP 0219112906 AP 0126440522 AV 0112346111 AW 0118870473 AX 0215520001 BC 0118035821 BD 0413961400 BL 0214614646 BM
Abacus Divisions Acumen Properties Aida Pretoria Akwaba Africa Properties Abreal Annenberg Property Group ANVIL Property SmithAPI Property Group API Property Group API Property Group Tshwane 5th Avenue Properties Watprop Avron Commercial Industrial Properties CC Barclay Elcott & Associates Bruce McWilliams Industries Benchmark Property Group Jones Lang LaSalle 0115072200
BR Broll Property Group 0313621721 BR Broll Property Group 0114414108 BR Broll Property Group 0413635559 BR Broll Property Group 0114414288 BR Broll Property Group 0114414130 BR Broll Property Group 0313621700 BS 0861278734 BV 0214484552 BVF 0448732801 CA 0219154800 CAP 0837845895 CE 0333471200 CHR 0435551002 CI 0113783235 CIR 0219813263 CM 0219141840 CPS 0102860777 CR 0117832111 CRE 0824413754 CRI 0123467777 CUS 0119118259 DAL 0437404786 DD 0219481199 DD 0214340001 DE 0366372297 DN 0219480934 DT 0826022777 DVG 0114330250 DW 0215311551 EB 0437268400 EK 0514301511 EQV 0514300907 ER 0437260501 ES 0152873300 ETC 0117915134 EXH 0114855019 FO 0357724011 FS 0210350324 FWR 0836527341 FWR 0827828172 GAM 0861177770 GB 0117831195 GB 0214186308 GH 0110387100 GI
B-Sure Group Holdings Bordiss Properties Boshoff Visser Property Group Chas Everitt Capprop Cenprop Real Estate Chris Batting Properties City Property Administration Circle Properties Capitol Commercial Properties 3Cube Property Solutions Colliers International Commercial Realtor of Excellence CRI Properties Cushman and Wakefield Excellerate Dalena Properties Diamond Properties Diamond Properties Dedekind Real Estate David Newham Property Management Deltahof DVG Investment Group Divaris Property Brokers ERA Sun Properties Ellenberger & Kahts Equity Valuers Associated Property Brokers Eli Ströh Etchells and Young Property Brokers Executive Homes Fosprops Properties/Homenet Find a Space Find a Warehouse Find a Warehouse Granite Asset Management Knight Frank Knight Frank Gradion Property Investments Growthpoint Properties 0119446073
GI Growthpoint Management Services 0315845100 GO Pam Golding Properties 0448746619 GRV Garden Route Valuers 0448747404 GT Black Pepper Properties 0114631909 GW Goldswain Investments (Pty) Ltd 0437222876 GY GDP Industrial Property (Pty) Ltd 0213801111 HH Hendrik Tryhou Property Consultants 0137441671 HN Harcourts Patrick & Co 0333423340 HN Harcourts - Maritz 0126530368 HN Harcourts Midrand 0112065900 HOU House of Realtors 0798008413 HP Horizon Capital (Pty) Ltd 0214258586 HS Summerton Edelson Commercial 0415811768 HZM Huizemark 0833478820 IK Ikon Property Group 0214259496 IKP Ikon/Phoenix Consultants 0825625547 IPC I.P.C R.E Lopes 0413630000 JR J Margolius & Associates (Pty) Ltd 0214344702 JUS Just Property Helderberg 0218546372 JUS Just Property Atlantic Seaboard 0212017007 KEL Kellaprince Properties Nelspruit 0137544400 KF Kesler Fulford Corporate Property 0829023638 LA Landlords "We do Rentals" 0219751770 LF Leon Fisser 0781475078 LIB Liberty 2 Degrees 0114485687 LM Louis Kruger Property Management 0219033101 MAS Massyn Acquisitions 0123452576 ME Mendace Properties 0828998304 MER Meridian Realty (Pty) Ltd 0218899769 MHP My House Properties 0218899759 MI Platinum Global 0514474711 ML Mindry Properties CC 0317834307 MO Moolman Group of Companies 0152914700 MP Monarch Rentals (Pty) Ltd 0118494211 MPR Millar's Properties 0123420527 MR Marder Properties 0114531220 MUL Multi Properties 0448746907 MY Mike Shefer Estates 0413738676 NAN Nangate Investments 0824113839 NB North Point Group 0413635519 NE Newbridge Property Services 0219139131 NET Networth Group 0152988141 NEX Nexus Property Group 0214183911 NH Netwater Properties 0113261614 NR National Real Estate 0514059990 NRG SA National Realtors Group Commercial 0415822608 NX Maxigroup 0214050800 OF Omnigro (Pty) Ltd 0212762000 OS Osher Property Solutions cc 0824668989 OSO Office Space Online 0115933186 PC Propco (1985) (Pty) Ltd 0315691334 PCP Port Commercial Properties 0212047218 PF Permanent Trust Property Group 0219819756 PF Permanent Trust Property Group 0214418800 PH President Estate & General Agents (Pty) Ltd 0118738707 PL Pears Property Consultants (Pty) Ltd 0217623474 PM PDL Property Management (Pty) Ltd 0137527333 PN Propergation Property Solutions 0219146444 PO Propertuity 0861333444 PPG Pulse Property Group (Pty) Ltd 0437000327 PPR Parallel Property 0110837171 PRS ProperSell 0117816281 PRU Properties R US 0218632046 PW Property Window 0538311319
PX Pillay Properties 0216857710 QP Share-List Property 0317647101 QS Commercial Space 0216805380 QU Quadrant Properties 0115309840 RA Real Estate & Property Services 0110271400 RAP Rapid Rentals 0123323149 REN Renico Construction (Pty) Ltd 0117941177 REW Real Estate @ Work 0836328011 RF Carleon Properties (Pty) Ltd 0117891007 RIZ Rize Property Professionals 0835567257 RK Renprop 0114636161 RM Remax Border East London 0437485847 RM Remax Tricolor 0317021855 RO Reef Property Consultants 0116821827 RPR Rennie Property Broking (Pty) Ltd 0214181550 RR RealNet Premier (Pty) Ltd 0217610328 RR RealNet Premier (Pty) Ltd 0215580942 RR RealNet Stellenbosch 0860222249 RR RealNet Stellenbosch 0833802121 RS Rawson Helderberg Commercial 0218512656 RS Rawson Properties 0219141353 RY Stipec Eiendomskonsultante 0152954537 RZ Oriprops 0137546562 SC Stockton Property Consultants 0114259857 SCM Sotheby's Commercial 0216731241 SCS Sentinel Commercial Services 0861222021 SF Seeff 0214349175 SF Seeff 0218642948 SF Seeff Polokwane 0152971140 SQ Steer And Company 0214261026 SRE Sirago Real Estate 0310300999 SS Serendipityremix 0219136926 SWI Swindon Property Brokers 0112686315 SWI Swindon Property Brokers 0824056940 SWI Swindon Property Brokers 0214220778 SYN Synprop 0823917577 TE Trust & Estate Co. 0026461231224 TG Theo Goosen Estate Agents 0152959014 TH Trevor Hosiosky Investment Properties 0118035545 TI Torva Property Investments 0117835370 TR Trafalgar 0413656840 TR Trafalgar 0123265963 TR Trafalgar 0313017017 TR Trafalgar 0437266066 TR Trafalgar 0112145200 TR Trafalgar 0214105500 VAR Vartrust Real Estate 0871354450 WA Core Property Group 0217972552 WD Webprop 0219100180 WHF Warehouse Finder 0860009531 WK Wakefields 0317090213 WK Wakefields Ballito 0329460030 ZL Zylmari Properties 0123477673 ZO Zotos Property Group 0114632124 ZZ Anonymous
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Panellist codesxiiiRode’s Report 2018:3
Code Company Telephone number
ABA Abacus Divisions 0123455555 ACU Acumen Properties 0825574768 AI Aida Pretoria 0123483720 AKW Akwaba Africa Properties 0837002675 AM Abreal (Pty) Ltd 0115109780 AN Annenberg Property Group 0214657780 ANV ANVIL Property Smiht 0872348000 AP API Property Group 0112341144 AP API Property Group 0219112906 AP API Property Group Tshwane 0126440522 AV 5th Avenue Properties 0112346111 AW Watprop 0118870473 AX Avron Commercial Industrial Properties CC 0215520001 BC Barclay Elcott & Associates (Pty) Ltd 0118035821 BD Bruce McWilliams Industries (Pty) Ltd 0413961400 BL Benchmark Property Group 0214614646 BM Jones Lang LaSalle 0115072200 BR Broll Property Group 0313621721 BR Broll Property Group 0114414108 BR Broll Property Group 0413635559 BR Broll Property Group 0114414288 BR Broll Property Group 0114414130 BR Broll Property Group 0313621700 BS B-Sure Group Holdings 0861278734 BV Bordiss Properties 0214484552 BVF Boshoff Visser Property Group 0448732801 CA Chas Everitt 0219154800 CAP Capprop 0837845895 CE Cenprop Real Estate 0333471200 CHR Chris Batting Properties 0435551002 CI City Property Administration 0113783235 CIR Circle Properties 0219813263 CM Capitol Commercial Properties 0219141840 CPS 3Cube Property Solutions 0102860777 CR Colliers International 0117832111 CRE Commercial Realtor of Excellence 0824413754 CRI CRI Properties 0123467777 CUS Cushman and Wakefield Excellerate 0119118259 DAL Dalena Properties 0437404786 DD Diamond Properties 0219481199 DD Diamond Properties 0214340001 DE Dedekind Real Estate 0366372297 DN David Newham Property Management 0219480934 DT Deltahof (Edms) Bpk 0826022777 DVG DVG Investment Group 0114330250 DW Divaris Property Brokers 0215311551 EB ERA Sun Properties 0437268400 EK Ellenberger & Kahts 0514301511 EQV Equity Valuers 0514300907 ER Associated Property Brokers 0437260501 ES Eli Ströh Edms Bpk 0152873300 ETC Etchells and Young Property Brokers 0117915134 EXH Executive Homes 0114855019 FO Fosprops Properties/Homenet 0357724011 FS Find a Space 0210350324 FWR Find a Warehouse 0836527341 FWR Find a Warehouse 0827828172 GAM Granite Asset Management 0861177770 GB Knight Frank 0117831195 GB Knight Frank 0214186308 GH Gradion Property Investments 0110387100 GI Growthpoint Properties 0119446073
GI 0315845100 GO 0448746619 GRV 0448747404 GT 0114631909 GW 0437222876 GY 0213801111 HH 0137441671 HN 0333423340 HN 0126530368 HN 0112065900 HOU 0798008413 HP 0214258586 HS 0415811768 HZM 0833478820 IK 0214259496 IKP 0825625547 IPC 0413630000 JR 0214344702 JUS 0218546372 JUS 0212017007 KEL 0137544400 KF 0829023638 LA 0219751770 LF 0781475078 LIB 0114485687 LM 0219033101 MAS 0123452576 ME 0828998304 MER 0218899769 MHP 0218899759 MI 0514474711 ML 0317834307 MO 0152914700 MP 0118494211 MPR 0123420527 MR 0114531220 MUL 0448746907 MY 0413738676 NAN 0824113839 NB 0413635519 NE 0219139131 NET 0152988141 NEX 0214183911 NH 0113261614 NR 0514059990 NRG 0415822608 NX 0214050800 OF 0212762000 OS 0824668989 OSO 0115933186 PC 0315691334 PCP 0212047218 PF 0219819756 PF 0214418800 PH 0118738707 PL 0217623474 PM 0137527333 PN 0219146444 PO 0861333444 PPG 0437000327 PPR 0110837171 PRS 0117816281 PRU 0218632046 PW
Growthpoint Management Services Pam Golding Properties Garden Route Valuers Black Pepper Properties Goldswain Investments GDP Industrial Property Hendrik Tryhou Property Consultants Harcourts Patrick & Co Harcourts - Maritz Harcourts Midrand House of Realtors Horizon Capital Summerton Edelson Commercial Huizemark Ikon Property Group Ikon/Phoenix Consultants IPC/Rob Lopes Rentals J Margolius & Associates Just Property Helderberg Just Property Atlantic Seaboard Kellaprince Properties Nelspruit Kesler Fulford Corporate Property Landlords "We do Rentals" Leon Fisser Liberty 2 Degrees Louis Kruger Property Management Massyn Acquisitions Mendace Properties Meridian Realty My House Properties Platinum Global Mindry Properties Moolman Group of Companies Monarch Rentals Millar's Properties Marder Properties Multi Properties Mike Shefer Estates Nangate Investments North Point Group Newbridge Property Services Networth Group Nexus Property Group Netwater Properties National Real Estate SA National Realtors Group Commercial Maxigroup Omnigro Osher Property Solutions Office Space Online Propco (1985) Port Commercial Properties Permanent Trust Property Group Permanent Trust Property Group President Estate & General Agents Pears Property Consultants PDL Property Management Propergation Property Solutions Propertuity Pulse Property Group Parallel Property ProperSell Properties R US Property Window 0538311319
PX Pillay Properties 0216857710 QP Share-List Property 0317647101 QS Commercial Space 0216805380 QU Quadrant Properties 0115309840 RA Real Estate & Property Services 0110271400 RAP Rapid Rentals 0123323149 REN Renico Construction (Pty) Ltd 0117941177 REW Real Estate @ Work 0836328011 RF Carleon Properties (Pty) Ltd 0117891007 RIZ Rize Property Professionals 0835567257 RK Renprop 0114636161 RM Remax Border East London 0437485847 RM Remax Tricolor 0317021855 RO Reef Property Consultants 0116821827 RPR Rennie Property Broking (Pty) Ltd 0214181550 RR RealNet Premier (Pty) Ltd 0217610328 RR RealNet Premier (Pty) Ltd 0215580942 RR RealNet Stellenbosch 0860222249 RR RealNet Stellenbosch 0833802121 RS Rawson Helderberg Commercial 0218512656 RS Rawson Properties 0219141353 RY Stipec Eiendomskonsultante 0152954537 RZ Oriprops 0137546562 SC Stockton Property Consultants 0114259857 SCM Sotheby's Commercial 0216731241 SCS Sentinel Commercial Services 0861222021 SF Seeff 0214349175 SF Seeff 0218642948 SF Seeff Polokwane 0152971140 SQ Steer And Company 0214261026 SRE Sirago Real Estate 0310300999 SS Serendipityremix 0219136926 SWI Swindon Property Brokers 0112686315 SWI Swindon Property Brokers 0824056940 SWI Swindon Property Brokers 0214220778 SYN Synprop 0823917577 TE Trust & Estate Co. 0026461231224 TG Theo Goosen Estate Agents 0152959014 TH Trevor Hosiosky Investment Properties 0118035545 TI Torva Property Investments 0117835370 TR Trafalgar 0413656840 TR Trafalgar 0123265963 TR Trafalgar 0313017017 TR Trafalgar 0437266066 TR Trafalgar 0112145200 TR Trafalgar 0214105500 VAR Vartrust Real Estate 0871354450 WA Core Property Group 0217972552 WD Webprop 0219100180 WHF Warehouse Finder 0860009531 WK Wakefields 0317090213 WK Wakefields Ballito 0329460030 ZL Zylmari Properties 0123477673 ZO Zotos Property Group 0114632124 ZZ Anonymous
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Panellist codesxivRode’s Report 2018:3
Code Company Telephone number
ABA Abacus Divisions 0123455555 ACU Acumen Properties 0825574768 AI Aida Pretoria 0123483720 AKW Akwaba Africa Properties 0837002675 AM Abreal (Pty) Ltd 0115109780 AN Annenberg Property Group 0214657780 ANV ANVIL Property Smiht 0872348000 AP API Property Group 0112341144 AP API Property Group 0219112906 AP API Property Group Tshwane 0126440522 AV 5th Avenue Properties 0112346111 AW Watprop 0118870473 AX Avron Commercial Industrial Properties CC 0215520001 BC Barclay Elcott & Associates (Pty) Ltd 0118035821 BD Bruce McWilliams Industries (Pty) Ltd 0413961400 BL Benchmark Property Group 0214614646 BM Jones Lang LaSalle 0115072200 BR Broll Property Group 0313621721 BR Broll Property Group 0114414108 BR Broll Property Group 0413635559 BR Broll Property Group 0114414288 BR Broll Property Group 0114414130 BR Broll Property Group 0313621700 BS B-Sure Group Holdings 0861278734 BV Bordiss Properties 0214484552 BVF Boshoff Visser Property Group 0448732801 CA Chas Everitt 0219154800 CAP Capprop 0837845895 CE Cenprop Real Estate 0333471200 CHR Chris Batting Properties 0435551002 CI City Property Administration 0113783235 CIR Circle Properties 0219813263 CM Capitol Commercial Properties 0219141840 CPS 3Cube Property Solutions 0102860777 CR Colliers International 0117832111 CRE Commercial Realtor of Excellence 0824413754 CRI CRI Properties 0123467777 CUS Cushman and Wakefield Excellerate 0119118259 DAL Dalena Properties 0437404786 DD Diamond Properties 0219481199 DD Diamond Properties 0214340001 DE Dedekind Real Estate 0366372297 DN David Newham Property Management 0219480934 DT Deltahof (Edms) Bpk 0826022777 DVG DVG Investment Group 0114330250 DW Divaris Property Brokers 0215311551 EB ERA Sun Properties 0437268400 EK Ellenberger & Kahts 0514301511 EQV Equity Valuers 0514300907 ER Associated Property Brokers 0437260501 ES Eli Ströh Edms Bpk 0152873300 ETC Etchells and Young Property Brokers 0117915134 EXH Executive Homes 0114855019 FO Fosprops Properties/Homenet 0357724011 FS Find a Space 0210350324 FWR Find a Warehouse 0836527341 FWR Find a Warehouse 0827828172 GAM Granite Asset Management 0861177770 GB Knight Frank 0117831195 GB Knight Frank 0214186308 GH Gradion Property Investments 0110387100 GI Growthpoint Properties 0119446073
GI Growthpoint Management Services 0315845100 GO Pam Golding Properties 0448746619 GRV Garden Route Valuers 0448747404 GT Black Pepper Properties 0114631909 GW Goldswain Investments (Pty) Ltd 0437222876 GY GDP Industrial Property (Pty) Ltd 0213801111 HH Hendrik Tryhou Property Consultants 0137441671 HN Harcourts Patrick & Co 0333423340 HN Harcourts - Maritz 0126530368 HN Harcourts Midrand 0112065900 HOU House of Realtors 0798008413 HP Horizon Capital (Pty) Ltd 0214258586 HS Summerton Edelson Commercial 0415811768 HZM Huizemark 0833478820 IK Ikon Property Group 0214259496 IKP Ikon/Phoenix Consultants 0825625547 IPC I.P.C R.E Lopes 0413630000 JR J Margolius & Associates (Pty) Ltd 0214344702 JUS Just Property Helderberg 0218546372 JUS Just Property Atlantic Seaboard 0212017007 KEL Kellaprince Properties Nelspruit 0137544400 KF Kesler Fulford Corporate Property 0829023638 LA Landlords "We do Rentals" 0219751770 LF Leon Fisser 0781475078 LIB Liberty 2 Degrees 0114485687 LM Louis Kruger Property Management 0219033101 MAS Massyn Acquisitions 0123452576 ME Mendace Properties 0828998304 MER Meridian Realty (Pty) Ltd 0218899769 MHP My House Properties 0218899759 MI Platinum Global 0514474711 ML Mindry Properties CC 0317834307 MO Moolman Group of Companies 0152914700 MP Monarch Rentals (Pty) Ltd 0118494211 MPR Millar's Properties 0123420527 MR Marder Properties 0114531220 MUL Multi Properties 0448746907 MY Mike Shefer Estates 0413738676 NAN Nangate Investments 0824113839 NB North Point Group 0413635519 NE Newbridge Property Services 0219139131 NET Networth Group 0152988141 NEX Nexus Property Group 0214183911 NH Netwater Properties 0113261614 NR National Real Estate 0514059990 NRG SA National Realtors Group Commercial 0415822608 NX Maxigroup 0214050800 OF Omnigro (Pty) Ltd 0212762000 OS Osher Property Solutions cc 0824668989 OSO Office Space Online 0115933186 PC Propco (1985) (Pty) Ltd 0315691334 PCP Port Commercial Properties 0212047218 PF Permanent Trust Property Group 0219819756 PF Permanent Trust Property Group 0214418800 PH President Estate & General Agents (Pty) Ltd 0118738707 PL Pears Property Consultants (Pty) Ltd 0217623474 PM PDL Property Management (Pty) Ltd 0137527333 PN Propergation Property Solutions 0219146444 PO Propertuity 0861333444 PPG Pulse Property Group (Pty) Ltd 0437000327 PPR Parallel Property 0110837171 PRS ProperSell 0117816281 PRU Properties R US 0218632046 PW Property Window 0538311319
PX 0216857710 QP 0317647101 QS 0216805380 QU 0115309840 RA 0110271400 RAP 0123323149 REN 0117941177 REW 0836328011 RF 0117891007 RIZ 0835567257 RK 0114636161 RM 0437485847 RM 0317021855 RO 0116821827 RPR 0214181550 RR 0217610328 RR 0215580942 RR 0860222249 RR 0833802121 RS 0218512656 RS 0219141353 RY 0152954537 RZ 0137546562 SC 0114259857 SCM 0216731241 SCS 0861222021 SF 0214349175 SF 0218642948 SF 0152971140 SQ 0214261026 SRE 0310300999 SS 0219136926 SWI 0112686315 SWI 0824056940 SWI 0214220778 SYN 0823917577 TE 0026461231224 TG 0152959014 TH 0118035545 TI 0117835370 TR
Pillay Properties Share-List Property Commercial Space Quadrant Properties Real Estate & Property Services Rapid Rentals Renico Construction Real Estate @ Work Carleon Properties Rize Property Professionals Renprop Remax Border East London Remax Tricolor Reef Property Consultants Rennie Property BrokingRealNet Premier RealNet Premier RealNet Stellenbosch RealNet Stellenbosch Rawson Helderberg Commercial Rawson Properties Stipec Eiendomskonsultante Oriprops Stockton Property Consultants Sotheby's Commercial Sentinel Commercial Services Seeff Seeff Seeff Polokwane Steer And Company Sirago Real Estate Serendipityremix Swindon Property Brokers Swindon Property Brokers Swindon Property Brokers Synprop Trust & Estate Co. Theo Goosen Estate Agents Trevor Hosiosky Investment Properties Torva Property Investments Trafalgar 0413656840
TR Trafalgar 0123265963 TR Trafalgar 0313017017 TR Trafalgar 0437266066 TR Trafalgar 0112145200 TR Trafalgar 0214105500 VAR Vartrust Real Estate 0871354450 WA Core Property Group 0217972552 WD Webprop 0219100180 WHF Warehouse Finder 0860009531 WK Wakefields 0317090213 WK Wakefields Ballito 0329460030 ZL Zylmari Properties 0123477673 ZO Zotos Property Group 0114632124 ZZ Anonymous
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Acknowledgements
AcknowledgementsxvRode’s Report 2018:3
The writers of Rode's Report express their sincere thanks to:
1. Sapoa, for use of the basic data from their office vacancy and officestock surveys, which we analysed further.
2. The Bureau for Economic Research (BER) and Medium-Term ForecastingAssociates (MFA), for the use of their buidling cost data (Haylett and BERBCI).
4.
AECOM AFRICA PROPERTY AND CONSTRUCTION COST GUIDE 2018,for the use of their building cost data for various building types.
5.
All the panellists who so kindly gave of their time and expertise inresponding to our surveys. The complete list of panellists whocontribute to the RR, together with their codes, appears onp. xii. For each of the survey tables in the RR you will find, listedagainst every node or area, the codes for all the panellists who contri-buted information this quarter.
6.
Loraine West, who has the task of making sure that all grossgrammar mistakes are corrected.
7. Samantha Harkers-Kies, who manages the surveys and compiles theannexures and Lynette Smit and Juwayra Januarie for their technicalassistance.
8. The JSE Securities Exchange, Statistics South Africa and the BondExchange of South Africa for the use of their data.
3.
Other property practitioners throughout South Africa, experts in theirfields, too numerous to mention individually. Without the generousassistance of these professionals, much of our research would beimpossible.
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Foreword
Dear Reader
Welcome to the third issue of Rode’s Report on the South African Property Market (RR) for 2018. The property market is under pressure, as reflected by the dire performance of the listed sector. Let’s not forget that the economy is in recession. The new administration in the Union Buildings is trying to prop up the economy through its foreign investment drive and a domestic stimulus package, but time will tell whether this will bear fruit.
As usual, we report on the movements of several critical property variables, ranging from capitalization rates, market rentals, operating costs, escalation rates, land values and house prices.
If you want to communicate with a specific niche market, you can contact Lynette Smit on 082 323 5799 for RR advertising rates.
Lynette and Samantha Harkers-Kies are in charge of expanding our survey panel. Their job is to give you access to the opinions of as many property experts as possible. We appeal to all market participants who feel they have sufficient property market knowledge to become a panellist, to please contact Lynette or Samantha on 021 946 2480 — it’s for the benefit of everyone in the industry. As a panellist you will also get invaluable exposure.
Vigilant readers will notice the ongoing expansion of our coverage for the South African property market. In this issue some of the areas we have added include Dube Tradeport (industrial township, Durban), Durbanville Industrial Park (Cape Town) and Waverley/Bramley (office node, Johannesburg). We are also growing our coverage for flats and have added the following areas: Stellenbosch Campus, Milnerton Burgundy Estate, Sandown/Sunningdale (Cape Town) and Hatfield (Pretoria). Readers are welcome to contact Rode if they have a strong case for the inclusion of other areas.
Happy reading and all the best for the last stretch of 2018!
Kobus Lamprecht Editor
8 October 2018
ForewordxviRode’s Report 2018:3
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Property is constantly in the limelight and
investors are searching for meaningful, prop-
erty-speci�c information. This makes a com-
pelling argument for �nely-targeted
advertising in the Rode’s Report on the SA
Property Market. This independent analysis
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Advertise your services and prod-ucts to excellent effect
■ Target audience: Rode’s Report is targeted at
investors and property practitioners such as
property developers, property managers, land-
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non-residential property brokers.
■ Continued exposure: A quarterly publication,
Rode’s Report is used as a reference source with
a long shelf life.
■ Rates and special advertising offers: Take advan-
tage of Rode’s special advertising offer: an offer,
extended to “�rst-time” advertisers only, entitles
the advertiser to a 25% discount. Normal rates
appear on the Rode website.
■ Advertise on Rode’s website: For an extension
of your marketing, also consider an advertise-
ment on the Rode website.
Bookings and more information:
Telephone: 082 323 5799
E-mail: [email protected]
Website: www.rode.co.za
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Rode’s PropertyValuation Services
Rode’s field of expertise includes property valuations, real estate economics, property research (various Rode publications) and property consultancy. As one of South Africa's largest independent property valuation firms, Rode has over the past twelve months valued property with a total market value of more than R30 billion.
These properties include:
Shopping Centres: Rode is considered one of South Africa's premier shopping-centre valuers.
Agricultural property Commercial and industrial property: Rode provides listed companies, private companies and financial institutions, amongst others, with non-residential property valuations.
Bare dominiums Specialised properties
Why use Rode's valuation services?
Rode's valuation approach is underpinned by, inter alia, regular and rigorous market surveys, capitalization rate estimates based on regression models and techniques, and the opportunity cash flow (OCF) method. This ensures uniform and realistic market valuations, and largely avoids forecasting. In addition, Rode operates nationally which results in a unique overview of the South African property market.
Rode performs all types of valuations for our clients, from DCF to income capitalization to comparable sales, as well as everything in between. Rode is currently the annual top performer in the pmr.africa awards which recognises excellence in the industry.
www.rode.co.za
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Rode’s Report 2018:3 1 State of the Property Market
Chapter 1: State of the property market
State of the property market in quarter 3 of 2018 The property market is under pressure, as reflected by the dire performance of the listed sector. The threat of land expropriation without compensation is not helping, although the situation appears to be somewhat calmer now as it seems the government is not going to go the whole hog.
The industrial property market remains the best performer among the different property types, but here growth is also starting to slow, with vacancies creeping up from low levels. The good news is that rental growth is still outpacing building-cost inflation (as measured by the BER BCI). However, the same can’t be said about office rentals and house prices.
Let’s not forget that the economy is in recession, which can be expected to hold back the demand for space. The new administration in the Union Buildings is trying to prop up the economy through its foreign investment drive and a domestic stimulus package, but time will tell whether this will bear fruit as all the immediate remedies are politically unpalatable, not to mention that many constraints are structural (long-term problems) that cannot be rectified in the short term. Thus, in the short term the economy will need all the support it can get without endangering the long-term prospects. A good example of this caveat is that more government debt will be the road to ruin. Whiffs of Italy.
Therefore, tough times are probably here to stay for a while.
A summary of the main findings per property type follows.
Quantitative overview of the property market
Table 1.1 provides a snapshot of how the property market has performed over the past four quarters by comparing the latest information (quarter 2018:3) with that collected a year ago.
Office market
In the third quarter of 2018, the office market failed to build on the better second-quarter performance. Never-theless, national rentals still managed to grow (+4%) in line with building-cost inflation, but this is mostly thanks to continued stellar growth in Cape Town (+10%). Rentals in other major cities mostly disappointed – a symptom of an oversupply.
Johannesburg decentralized rentals rose by about 4%, on par with building-cost inflation. Rental rates in Pretoria decentralized increased by 1%, while they fell by 1% in Durban.
Industrial market
Industrial property continues to be the shining light in the property market due to its superior rental growth and lower vacancy rates. However, Rode’s latest data indicate the market is starting to cool somewhat, with third-quarter national rental growth slowing to 6% from 7,5% in the previous quarter.
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Rode’s Report 2018:3 2 State of the Property Market
Table 1.1 Rental performance in quarter 2018:3
% change from four quarters ago (on smoothed data) Nominal Real*
A-grade decentralized office rentals Sandton CBD 2,1 -2,0 Randburg Ferndale 4,2 0,0 Brooklyn/Waterkloof 3,5 -0,7 Hatfield -3,1 -7,0Berea (Durban) -2,4 -6,3La Lucia/Umhlanga Ridge -1,5 -5,6 Claremont Upper 22,7 17,8 Tyger Valley 12,4 7,9 Century City 16,5 11,8
Prime industrial rentals (500 m² units) Central Witwatersrand 4,8 0,5 East Rand 3,1 -1,0 Durban metro 3,9 -0,3 Cape Peninsula 14,9 10,3 * Nominal values deflated by BER Building Cost Index
Nationally, industrial rental growth was largely driven by the Cape Peninsula, where nominal market rentals grew by an incredible 15% year on year. This sharp growth is in line with Rode’s vacancy-factor data, which indicate the region has the least amount of vacant space in the country.
Rentals in the Central Witwatersrand, Durban and East Rand grew by 5%, 4% and 3% respectively. Rentals in the West Rand declined by 3%. This implies that rentals managed to grow in real terms only in the Cape Peninsula and the Central Witwatersrand.
Housing market
In the first eight months of 2018, national nominal house prices grew by 3,5% year on year as the market remains under pressure from weak demand. This implies that house prices are still declining in real terms.
By metro, Cape Town still stands out, with growth of 8,7% in the second quarter of 2018, although growth has slowed over the past two years. In comparison, prices in Johannesburg, Ekurhuleni and Pretoria all grew by around 3%.
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Rode’s Report 2018:3 3 Standard capitalization rates
Chapter 2: Capitalization rates
Capitalization rates are more or less unchanged
Kobus Lamprecht
Capitalization rates on directly held non-residential property in South Africa in the third quarter of 2018 were about the same as in the second quarter. However, the data in this chapter look slightly better (still declining) because the smoothed time series include declining cap rates of previous quarters.
In the national time series, Cape Town was the biggest driver of the slightly better national cap rates. (Note again, all time series in this chapter are smoothed.)
In the third quarter, the respective national cap rates were 9,5% for prime multi-tenanted office property, 9,1% for prime industrial leaseback capitalization rates and 7,8% for regional shopping centres, as shown in the chart.
The declining cap rates earlier in the year we ascribe to Ramaphoria that existed at the time. However, this trend has been stopped in its tracks as South Africans contemplate the harsh reality of the state of the economy.
Below, we first briefly discuss the outlook for capitalization rates, followed by the movement in capitalization rates for the different property types by region.
Outlook for capitalization rates
The outlook for the growth in income streams from directly held non-residential property continues to be marred by poorly performing property fundamentals, such as above-average vacancy rates and sub-inflation rental growth.
The consensus view of economists is that interest rates will increase over the next few years. The weak economy has been a strong deterrent to rate hikes thus far. However, rates might increase within the next year to contain inflation, which is picking up due to the weak rand and record-high fuel prices, which could lead to second-round inflation (workers demanding wage increases to compensate them for rising cost of living). Also, given rising interest rates in the USA, interest rates here will have to go up eventually to keep or attract much-needed portfolio investments.
The above discussion was about short-term interest rates. Long interest rates can affect the total returns (hurdle rates) investors expect on property through three channels, viz. (1) the substitution principle (alternative, long-term investments like 10-year bonds now yield a higher or lower return), (2) the cost of
7
8
9
10
11
12
13
14
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18
Regional shopping centresIndustrial leasebacksDecentralized offices
National capitalization ratesby property type
Source of data: Rode's Time Series
%
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Rode’s Report 2018:3 4 Standard capitalization rates
financial gearing (shorter-term interest rates), and (3) the market’s rating of listed property funds like REITs that can affect the profitability of purchasing directly held property. The result could be that property investors will require higher income returns − capitalization rates ─ when investing in property. Higher capitalization rates of course mean lower prices (of directly held properties) – holding all other factors constant.
Office capitalization rates
A look at Johannesburg decentralized nodal levels reveals that third-quarter 2018 office capitalization rates were unchanged from the second quarter. In other words, our panellists remained of the opinion that investors currently require a minimum net income return of about 9,7% to induce them to buy or sell grade-A multi-tenanted property in Johannesburg decentralized. This is 0,9 percentage points higher than in Cape Town.
Capitalization rates in most Johannesburg nodes either stayed the same (see first chart) or declined (second chart).
During the quarter, capitalization rates on grade-A multi-tenanted properties in Johannesburg decentralized ranged from 9% in the Sandton CBD to as high as 10,5% in Randburg. The difference in capitalization rates between, for example, nodes such as Sandton CBD and Randburg, can be used as a guide to the market’s perception of these nodes. The higher the capitalization rate, the worse the expected growth in income streams
and/or the higher the perceived risk of the location.
Capitalization rates in prime Pretoria decentralized office nodes were also unchanged in the third quarter of 2018 as rate gains in Brooklyn offset worsening rates in Centurion. Capitalization rates stayed stable in Hatfield and Midrand.
The average capitalization rate for prime Durban decentralized office property declined slightly to 9,6%. Note the worsening La Lucia/Umhlanga Ridge cap rates, which are probably due to weaker market rentals as vacancies rise (see Chapters 5 and 6).
9
10
11
12
13
14
15
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
BryanstonRivoniaSunninghillRandburg
Capitalization ratesPrime Johannesburg decentralized offices
Source of data: Rode's Time Series
%
Smoothed
8
9
10
11
12
13
14
15
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
BrooklynHatfieldCenturionMidrand
Capitalization ratesPrime Pretoria decentralized offices
Source of data: Rode's Time Series
%
Smoothed
8
9
10
11
12
13
14
15
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Umhlanga RidgeWestwayEssex TerraceBerea
Capitalization ratesPrime Durban decentralized offices
Source of data: Rode's Time Series
%
Smoothed
8
9
10
11
12
13
14
15
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18
Sandton CBDParktownRosebankMidrand
Capitalization ratesPrime Johannesburg decentralized offices
Source of data: Rode's Time Series
%
Smoothed
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Rode’s Report 2018:3 5 Standard capitalization rates
Grade-A capitalization rates in Cape Town decentralized improved to 8,8% in the third quarter, from just above 9% in the previous quarter. Cape Town has the lowest cap rates in the country. The cap rates of the different nodes mostly improved (declined) as shown in the chart.
Industrial capitalization rates
In the third quarter of 2018, capitalization rates on industrial leasebacks in the country’s major industrial areas declined slightly from previous-quarter levels. Our respondents believed investors in prime industrial property (with a leaseback covenant) required a minimum net income yield of 9% in the country’s top cities and nodes.
Most regions recorded an improvement in cap rates. This is in line with generally low vacancy rates and above-inflation rental growth in most of the major regions. However, rentals do seem to be slowing (see discussion in Chapter 7). The Cape Peninsula (8,3%) had the lowest capitalization rate, which is not surprising, given its superior rental and vacancy rates.
Shopping centre capitalization rates
Capitalization rates of regional shopping centres in the major conurbations also showed mild improvement (declined). In the third quarter of 2018, investors in regional centres required a net income return of between 7,5% and 8% to induce them to buy or sell regional centres. Note that regional centres are the second-largest type of centre, after super-regional centres. The latter’s capitalization rates are, of course, even lower. We found that the national cap rates for the smaller community and neighbourhood centres were 8,5% and 9,2% respectively.
The prospects for income-stream growth from shopping centres remain weak due to the poor outlook for consumer spending amid a surfeit of shop space. The outcome of this could mean investors eventually requiring higher returns when investing in shopping centres, and consequently, higher market capitalization rates.
Leaseback escalation rates
Table 2.1 shows that the average leaseback escalation rate (on new leases) in the third quarter of 2018 was 8,0%. The standard deviation of 0,3% suggests the leaseback escalation rate can be as low as 7,7% or as high as 8,3%. The escalation rate is an (often unsuccessful) attempt by the market to forecast the average growth in market rentals until the expiry of the lease. Note that we define a leaseback as a lease agreement that has, inter alia, a term at inception of 10 years or longer.
8
9
10
11
12
13
14
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
ClaremontTyger ValleyCentury CityWestlake
Capitalization ratesPrime Cape Town decentralized offices
Source of data: Rode's Time Series
%
Smoothed
6
7
8
9
10
11
12
13
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
PretoriaCape PeninsulaCentral WitwatersrandDurban
Capitalization ratesRegional shopping centres
Source of data: Rode's Time Series
%
8
9
10
11
12
13
14
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Cape PeninsulaDurbanPretoriaCentral Witwatersrand
Capitalization ratesPrime industrial leasebacks
Source of data: Rode's Time Series
%
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Rode’s Report 2018:3 6 Standard capitalization rates
This concludes our analysis of capitalization rates. The capitalization rate tables follow.
Table 2.1 Prime industrial leaseback escalation rates
Quarter 2018:3
Mean SD N Change 2018:3 less 2018:2 Broker contributor codes
8,0 0,3 17 0,3 AKW,AW,BR,BVF,CAP,EK,ER,FO,GY,HN,HS, MAS,MUL,NRG,PC,QP,REW,RR,TG,TH
Interpretation tip: It is dangerous to rely on one quarter’s figure, as it may be an outlier owing to small sample sizes. Instead, consider the trend or contemplate using the average of at least two quarters for a more accurate assessment. For this reason, the graphs accompanying this article are smoothed.
A standard capitalization rate (colloquially referred to as a cap rate) is the expected net operating income for year 1, assuming the entire building is let at open-market rentals, divided by the purchase price. This calculation ignores VAT, transfer duty and income tax, and assumes a cash transaction. All references in Rode’s Report to “cap rates” and “capitalization rates” mean “standard capitalization rates”.
Capitalization rates for CBDs (excluding the Cape Town CBD) are of little use because when office properties are sold, they are invariably converted to flats.
The high standard deviation from the mean capitalization rate for office and industrial properties in some nodes, as reported in the accompanying capitalization rate tables, is indicative of the uncertainty prevailing in these nodes or areas. With few sales taking place, the evidence on ruling capitalization rates is thin and opinions vary more than in the more popular areas. This means the income-producing property market has become even more inefficient in these nodes, which makes the valuation of these properties a rather hazardous exercise.
We are indebted to our expert capitalization rate panel, comprising major owners and leading brokers who know their market segments intimately. This survey would not be possible without their invaluable contributions. Codes of those panellists who supplied information for this quarter's survey appear in the tables on the following pages. An explanation of the contributor codes can be found on p. xii.
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Rode’s Report 2018:3 7 Standard capitalization rates
Table 2.2 Survey of capitalization rates (%)
Office buildings Means for quarter 2018:3
Best location Grade A: Multi-tenant
Grade A: Leaseback
Grade B: Multi-tenant
Grade C: Multi-tenant
Mean SD n Mean SD n Mean SD n Mean SD n Johannesburg CBD 10,5 0,5 5 10,1 0,6 5 11,3 0,2 4 13,3 0,5 3 Braamfontein 10,5 0,3 5 9,9 0,4 4 11,4 0,4 4 12,8 0,2 3 Parktown 9,9 0,1 2 9,4 0,1 3 10,8 0,2 3 12,1 0,9 2 Rosebank 9,1 0,5 5 8,9 0,3 4 10,5 0,0 3 11,8 0,8 2 Bedfordview 10,0 0,0 2 9,5 - 1 10,9 0,1 2 11,3 - 1 Sandton CBD 9,0 0,4 6 8,8 0,2 3 9,9 0,4 5 11,5 1,0 2 Rivonia 9,7 0,4 3 9,4 0,3 3 10,6 0,4 4 11,9 0,6 2 Bryanston 9,3 0,3 3 9,2 0,1 3 10,7 0,6 4 11,8 0,8 2 Sunninghill 9,8 0,6 3 9,6 0,4 3 10,9 0,1 3 11,8 0,5 3 Randburg Ferndale 10,5 0,2 5 10,3 0,2 4 11,5 0,3 5 12,8 0,4 3 Midrand 10,3 0,8 4 10,0 0,4 4 10,9 0,7 4 11,7 0,2 3 Germiston CBD 12,5 - 1 10,8 0,3 2 11,5 - 1 13,3 0,3 2 Pretoria CBD 10,1 0,4 2 9,9 0,4 3 11,0 0,0 3 12,3 0,6 3 Hatfield 9,8 - 1 9,3 - 1 10,3 - 1 10,8 - 1 Brooklyn 9,5 - 1 9,0 - 1 10,0 - 1 10,5 - 1 Centurion 9,8 0,6 4 9,6 0,1 2 10,4 0,9 5 11,5 - 1 Nieuw Muckleneuk 9,5 - 1 9,0 - 1 10,5 - 1 11,0 - 1 Menlyn/Lynnwood 9,5 - 1 9,0 - 1 10,0 - 1 10,5 - 1 Vaal Triangle 10,3 0,3 2 10,0 0,0 2 11,1 0,1 2 11,9 0,4 2 Nelspruit 10,0 0,4 6 9,9 0,4 2 10,6 0,3 6 11,7 0,3 6 Polokwane 10,1 0,6 2 9,5 0,6 3 10,8 0,4 3 11,8 0,3 3 Durban CBD 10,3 0,3 2 10,0 0,7 3 10,9 0,2 4 11,6 0,6 2 Berea 9,8 - 1 9,3 - 1 10,6 0,4 2 10,8 - 1 Essex Terrace - - - - - - - Westway - - - - - - - -La Lucia Ridge 9,7 1,0 3 9,2 0,6 3 9,4 0,3 3 10,3 0,3 2 Pietermaritzburg 10,0 0,3 2 9,8 0,0 2 10,9 0,1 2 11,8 0,5 2 Cape Town CBD 9,1 0,5 5 8,5 0,3 6 9,8 0,6 6 11,0 0,7 6 Bellville CBD 9,2 0,1 3 9,3 0,2 3 10,1 0,3 4 10,9 0,8 3 Bellville Tygervalley 9,0 0,5 5 9,2 0,2 3 10,0 0,5 5 11,0 0,8 4 Century City 8,5 0,4 4 8,5 0,0 3 9,3 0,3 4 10,2 0,2 3 Westlake 8,4 0,4 2 8,4 0,3 3 9,4 0,1 2 10,5 - 1 Claremont 8,6 0,6 2 8,7 0,2 3 9,4 0,3 3 10,1 0,4 3 Port Elizabeth 9,9 0,1 5 9,6 0,3 5 10,8 0,5 4 11,7 0,8 4 East London 9,6 0,5 5 9,5 0,4 4 10,9 0,2 5 12,4 0,8 4 Bloemfontein CBD 9,3 0,4 4 9,3 0,2 3 10,3 0,2 3 11,3 0,4 4 George 9,3 0,2 3 9,0 0,0 2 9,6 0,1 2 9,6 0,1 2 Windhoek - - - - - - - - - - - - n = Number of respondents - = Not available or fewer than two respondents
SD = See Glossary of terms and abbreviations in Annexure 1.
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Rode’s Report 2018:3 8 Standard capitalization rates
Table 2.3 Change in capitalization rates (% points)
Office buildings Means for quarter 2018:3 less quarter 2018:2
Best location Grade A:
Multi-tenant
Grade A: Lease-back
Grade B: Multi-tenant
Grade C: Multi-tenant
Broker & owner contributors
Johannesburg CBD 0,1 0,3 0,3 0,1 AKW,IK,QU,REW,THBraamfontein 0,1 0,1 0,4 0,2 AKW,IK,QU,REW,THParktown 0,0 -0,1 -0,7 -0,2 QU,REW,THRosebank 0,0 -0,1 -0,3 -0,1 AW,AKW,QU,
REW,THBedfordview 0,0 -0,3 0,5 -0,3 IK,THSandton CBD 0,0 -0,2 -0,9 -0,4 AKW,AW,IK,QU,REW,
THRivonia -0,1 0,1 0,6 -0,4 IK,QU,REW,THBryanston 0,0 0,1 -0,1 -0,1 IK,QU,REW,THSunninghill -0,2 0,2 0,4 -0,5 QU,REW,THRandburg Ferndale 0,1 0,2 0,7 0,8 AKW,IK,QU,REW,THMidrand 0,3 0,2 -0,2 -0,4 AW,IK,QU,THGermiston CBD 2,2 0,8 0,7 0,3 QU,THPretoria CBD -0,1 -0,3 -0,2 -0,1 QU,REW,THHatfield/Hillcrest -0,1 -0,3 -0,8 -0,8 THBrooklyn 0,0 -0,3 -0,3 -0,8 THNieuw Muckleneuk 0,4 0,3 0,4 1,2 THCenturion 0,0 -0,3 0,9 -0,3 AI,HN,IK,QU,THMenlyn/Lynnwood 0,0 -0,3 0,0 -0,8 THVaal Triangle - 0,2 1,1 -0,4 QU,THNelspruit 0,0 0,0 -0,2 0,2 HH,KEL,PM,QU,RZ,THPolokwane 0,0 -0,2 0,3 -0,2 QU,TG,THDurban CBD 0,1 0,2 0,1 -0,9 IK,QU,SRE,THBerea 0,1 -0,3 -0,4 -1,1 SRE,THEssex Terrace - - - - SREWestway - - - - SRELa Lucia/Umhlanga Ridge
0,4 0,0 -0,6 -0,4 QU,SRE,TH
Pietermaritzburg -0,2 -0,1 0,8 -0,8 QU,THCape Town CBD 0,2 0,0 -1,2 0,1 IK,PF,RR,QU,REW,TH,
WABellville CBD -0,3 -0,1 0,2 -0,7 IK,PF,TH,WDBellville Tyger -0,3 0,2 -0,6 -0,2 CA,IK,PF,RR,TH,WDValley Century City -0,4 0,0 -0,9 -0,7 CA,IK,PF,QU,THWestlake - 0,4 -0,1 - IK,QU,WAClaremont -0,7 0,1 - -0,2 IK,TH,WAPort Elizabeth -0,1 -0,2 1,3 0,2 BR,HS,NRG,QU,THEast London -0,4 0,1 0,4 -0,3 CAP,CHR,ER,QU,THBloemfontein CBD -0,4 -0,2 -0,6 -0,3 EK,EQV,NR,THGeorge -0,2 0,2 -0,9 -1,1 BVF,MUL,THWindhoek - - - -
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Rode’s Report 2018:3 9 Standard capitalization rates
Table 2.4 Survey of capitalization rates (%)
Industrial buildings Means for quarter 2018:3
Best location Prime
leaseback (AAA Tenant)
Prime quality non-leaseback
Secondary quality building
Prime industrial park
Mean SD n Mean SD n Mean SD n Mean SD n Central Wits 8,9 0,6 7 9,6 0,2 5 10,4 0,2 5 9,8 0,5 7 West Rand 9,8 0,6 3 10,5 0,8 4 11,1 0,5 4 10,3 0,7 4 East Rand 9,2 0,5 6 9,8 0,6 6 10,8 0,8 6 9,8 0,7 6 Far East Rand 9,8 0,9 3 10,3 0,8 3 10,3 0,7 3 11,1 0,7 3 Pretoria 9,5 0,5 2 9,8 0,3 2 10,0 0,3 4 9,3 0,5 4 Vaal Triangle 9,0 - 1 9,5 - 1 10,3 - 1 9,3 - 1 Nelspruit 9,3 - 1 9,4 0,2 5 11,3 0,4 5 9,1 0,2 5 Polokwane 9,1 0,1 2 10,1 0,4 2 11,0 0,5 2 9,3 0,3 2 Durban greater 8,9 0,5 6 9,3 0,3 6 10,6 0,7 5 9,8 0,4 6 Pietermaritzburg 9,0 - 1 9,5 - 1 10,3 - 1 9,3 - 1 Cape Peninsula 8,3 0,2 6 9,3 0,4 6 9,9 0,5 8 9,3 0,4 6 Port Elizabeth 8,9 0,1 3 9,8 0,4 4 10,3 0,3 5 9,9 0,3 5 East London 9,4 0,1 2 9,9 0,4 5 11,5 0,7 5 10,1 0,5 5 Bloemfontein 10,2 0,8 3 9,9 0,1 2 11,2 0,6 3 9,8 0,2 3 George 8,9 0,1 2 9,6 0,3 3 10,3 0,5 3 9,2 0,6 3 Windhoek - - - - - - - - - - - - n = Number of respondents - = Not available – fewer than two respondents SD = See Glossary of terms and abbreviations in Annexure 1.
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Rode’s Report 2018:3 10 Standard capitalization rates
Table 2.5 Change in capitalization rates (% points)
Industrial buildings Means for quarter 2018:3 less quarter 2018:2
Best location Prime leaseback
Prime non-
leaseback
Secondary quality building
Prime Industrial
park
Broker & owner contributors
Central Wits -0,1 -0,1 -0,3 -0,2 AKW,AW,FWR,IK,QU,TH,REW
West Rand -0,1 0,0 -0,1 -0,3 AKW,FWR,QU,THEast Rand -0,1 -0,2 -0,3 -0,1 AKW,FWR,ME,QU,
REW,THFar East Rand -0,4 -0,2 -0,9 0,8 FWR,QU,TH Pretoria 0,1 0,2 -0,1 0,0 AI,HN,MAS,QU,THVaal Triangle -0,2 0,0 -0,3 -0,6 THNelspruit 0,2 0,0 0,0 0,0 HH,KEL,PM,RZ,TH Polokwane 0,0 0,4 0,3 -0,7 TG,THDurban 0,0 0,2 0,8 0,3 IK,PC,QP,QU,SRE,THPietermaritzburg -0,2 - -0,1 -0,3 THCape Peninsula -0,1 -0,2 -0,1 -0,3 DD,GY,IK,PF,QU,RR,
TH,WAPort Elizabeth -0,1 -0,2 -0,1 0,3 BR,HS,NRG,QU,THEast London -0,1 -0,1 0,1 0,1 CAP,CHR,QU,ER,TH Bloemfontein 0,3 -0,1 0,1 -0,4 EK,EQV,THGeorge -0,1 0,1 -0,2 -0,5 BVF,MUL,THWindhoek - - - -
Table 2.6 Survey of capitalization rates (%): shopping centres
Means for quarter 2018:3
Best location Super-regional Regional CommunityMean SD n Mean SD n Mean SD n
Witwatersrand 7,2 0,3 5 7,8 0,3 6 8,3 0,5 5 Pretoria 7,3 0,3 4 7,8 0,3 4 8,5 0,7 5 Vaal Triangle 8,3 0,3 2 8,0 0,4 3 8,8 0,8 2 Nelspruit 7,8 0,5 3 8,1 0,4 8 8,1 0,3 6 Polokwane 7,7 0,6 4 8,2 0,5 4 9,1 0,5 3 Durban 7,4 0,4 4 7,9 0,4 4 8,8 0,5 4 Pietermaritzburg 8,0 0,3 2 8,3 0,4 3 9,0 0,7 4 Cape Town 7,1 0,3 4 7,6 0,3 4 8,3 0,4 4 Port Elizabeth 7,9 0,4 4 8,4 0,5 7 9,3 0,6 7 East London 8,0 0,4 3 8,8 0,4 4 9,9 0,4 5 Bloemfontein 8,1 0,1 2 8,3 0,4 3 9,5 0,3 5 Platteland 8,0 0,5 2 8,5 0,5 2 9,5 0,2 3 Townships 8,3 - 1 8,4 0,4 2 9,4 0,1 3 George 7,8 0,3 2 8,3 0,3 2 9,3 0,3 2 Windhoek - - - - - - - - - n = Number of respondents - = Not available SD = See Glossary of terms and abbreviations in Annexure 1.
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Rode’s Report 2018:3 11 Standard capitalization rates
Table 2.6 (continued) Survey of capitalization rates (%): shopping centres
Means for quarter 2018:3
Best location Neighbourhood Local convenience Retail warehouse
Mean SD n Mean SD n Mean SD n Witwatersrand 9,4 0,5 5 10,3 0,4 5 9,9 0,6 6 Pretoria 9,1 0,7 5 9,7 0,9 6 9,6 0,9 6 Vaal Triangle 9,8 0,2 3 10,6 0,3 3 9,9 0,7 4 Nelspruit 9,3 0,4 8 10,2 0,4 8 9,8 0,5 8 Polokwane 9,9 0,2 4 10,1 0,4 3 9,8 0,7 5 Durban 9,5 0,4 4 10,5 0,4 3 9,8 0,5 4 Pietermaritzburg 9,7 0,3 4 10,6 0,3 3 9,6 0,3 3 Cape Town 8,8 0,6 5 9,8 0,7 5 9,5 0,3 4 Port Elizabeth 9,8 0,4 7 10,6 0,4 7 9,8 0,6 7 East London 9,9 0,5 6 10,6 0,3 6 10,0 0,5 5 Bloemfontein 9,8 0,2 6 10,5 0,3 5 10,4 0,5 5 Platteland 10,3 0,4 4 10,7 0,3 4 10,5 0,6 4 Townships 9,8 0,2 4 10,6 0,4 4 10,3 0,6 3 George 9,6 0,2 4 10,2 0,5 5 9,4 0,1 2 Windhoek - - - - - - - - - n = Number of respondents - = Not available SD = See Glossary of terms and abbreviations in Annexure 1.
Table 2.7 Change in capitalization rates (% points): shopping centres
Means for quarter 2018:3 less quarter 2018:2
Best location Super regional Regional Community Broker & owner
contributors Witwatersrand -0,2 0,0 0,3 AKW,IK,QU,REW,SYN,TH Pretoria -0,2 -0,3 -0,4 HN,IK,MAS,QU,REW,TH Vaal Triangle -0,1 -0,8 -0,2 IK,QU,REW,TH Nelspruit - 0,2 0,1 HH,IK,KEL,PM,QU,REW,RZ,TH Polokwane 0,1 0,0 -0,1 IK,QU,REW,TG,TH Durban -0,2 -0,1 -0,1 IK,QU,REW,TH Pietermaritzburg -0,3 0,3 0,1 IK,QU,REW,TH Cape Town 0,0 0,1 -0,2 IK,QU,REW,RR,TH Port Elizabeth -0,5 -0,1 0,0 BR,HS,IK,NRG,QU,REW,TH East London -0,3 0,2 0,4 CAP,CHR,ER,IK,QU,REW,TH Bloemfontein -0,7 -1,3 0,3 EK,EQV,IK,QU,REW,TH Platteland -0,8 -0,5 -0,3 FO,IK,MAS,QU,TH Townships -0,1 -0,1 -0,1 IK,QU,REW,TH George -0,3 0,4 0,4 BVF,IK,MUL,REW,TH Windhoek - - -
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Rode’s Report 2018:3 12 Standard capitalization rates
Table 2.7 (continued) Change in capitalization rates (% points): shopping centres
Means for quarter 2018:3 less quarter 2018:2
Best location Neighbour- hood
Local convenience
Retail warehouse
Broker & owner contributors
Witwatersrand 0,1 -0,1 0,1 AKW,IK,QU,REW,SYN,TH Pretoria -0,1 0,4 0,5 HN,IK,MAS,QU,REW,TH Vaal Triangle -0,2 -0,3 0,1 IK,QU,REW,TH Nelspruit 0,0 -0,1 0,2 HH,IK,KEL,PM,QU,REW,RZ,TH Polokwane -0,9 -1,1 0,0 IK,QU,REW,TG,TH Durban 0,0 0,0 0,4 IK,QU,REW,TH Pietermaritzburg -0,2 -0,3 -0,2 IK,QU,REW,TH Cape Town 0,1 -0,1 0,1 IK,QU,REW,RR,TH Port Elizabeth 0,0 -0,1 0,0 BR,HS,IK,NRG,QU,REW,TH East London -0,2 -0,1 0,0 CAP,CHR,ER,IK,QU,REW,TH Bloemfontein -0,3 -0,2 0,1 EK,EQV,IK,QU,REW,TH Platteland 0,4 0,8 0,8 FO,IK,MAS,QU,TH Townships -0,1 0,3 0,8 IK,QU,REW,TH George 0,3 0,1 0,3 BVF,IK,MUL,REW,TH Windhoek - - -
Table 2.8 Survey of capitalization rates (%): street-front shops
Means for quarter 2018:3
Best location Metro CBD Decentralized
Mean SD n Mean SD nJohannesburg 10,5 0,4 3 10,2 0,6 3Pretoria 10,3 0,6 4 9,9 0,7 4Vaal Triangle 10,8 0,9 4 10,4 0,4 3Nelspruit 11,9 0,6 7 10,8 0,2 6Polokwane 10,7 0,5 3 10,3 0,2 3Durban 10,3 0,2 3 9,8 0,3 2Pietermaritzburg 10,6 0,4 4 10,5 0,5 3Cape Town 9,6 0,4 5 9,7 0,2 3Port Elizabeth 11,1 0,7 6 11,0 0,8 5East London 9,9 0,7 3 10,7 0,4 4Bloemfontein 10,3 0,4 5 10,1 0,2 4George 10,1 0,7 5 10,0 0,6 4Windhoek - - - - - -n = Number of respondents - = Not available SD = Standard deviation. See Glossary of terms and abbreviations in Annexure 1.
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Rode’s Report 2018:3 13 Standard capitalization rates
Table 2.9 Change in capitalization rates (% points): street-front shops
Means for quarter 2018:3 less quarter 2018:2 Best location Metro CBD Decentralized Broker & owner contributors
Johannesburg 0,6 0,7 AKW,IK,QU,REW,TH Pretoria 0,4 0,3 HN,IK,MAS,QU,REW,TH Vaal Triangle 0,5 0,4 IK,QU,REW,TH Nelspruit 0,1 0,0 HH,IK,KEL,PM,QU,REW,RZ,TH Polokwane 0,5 -0,4 QU,REW,TG,TH Durban 0,2 -0,2 IK,QU,REW,TH Pietermaritzburg 0,2 0,4 IK,QU,REW,TH Cape Town 0,1 0,4 DD,IK,REW,RR,TH Port Elizabeth 0,2 0,2 BR,HS,IK,NGR,REW,TH East London -0,6 0,2 CHR,ER,REW,TH Bloemfontein 0,0 -0,4 EK,EQV,IK,REW,TH George 0,3 0,0 BVF,IK,MUL,REW,TH Windhoek - -
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Rode’s Report 2018:3 14 Capitalization rate equations
Chapter 3: Capitalization rate equations
How to estimate capitalization rates – anywhere
Kobus Lamprecht
This chapter provides the reader with a handy, updated tool to estimate the market capitalization rates of office and industrial property anywhere in South Africa, provided he or she is confident about the subject property’s gross market rental rate.
As the reader will see below, market rental rates are amazingly successful in explaining the level of capitalization rates. On reflection, though, this should not be all that surprising, considering that all the good and bad news pertaining to a property is encapsulated in the ruling market rental rate. Here we think of rental-level drivers such as:
Location Risk (examples of varying risk profiles
are a leaseback compared with amulti-tenanted property; the robust-ness of the covenant)
Grade/age.
An important risk factor typically not reflected in a rental is the design of the building, as it affects its ability to be re-let. Here one thinks of purpose-built buildings.
Thus, the moderately strong relationship between market rental rates and capitalization rates allows the researcher to build a regression model with which to estimate the capitalization rate.
Office building equation
In our regression analysis of office buildings, we use the market capitalization rates (dependent variables) and gross market rental rates (predictors) of grade A, B and C buildings in the areas surveyed by Rode’s Report (RR).
The source of the national equation given below is this issue of RR. The regression is based on 54 observations in mainly decentralized nodes.
The updated equation is: office capitalization rate % = 13,865 – (0,0313 * gross rental)
where:
gross rental = the gross market rental rate per rentable m2 per month for grade A, B or C office buildings in quarter 2018:3.
The r-squared = 0,65 (which means the level of market rentals explains 65% of the variation in capitalization rates, without controlling for other predictors). The standard error (SE) is 0,6 and n = 54.
Readers should note that it is not advisable to use this function for gross market rental rates that fall much outside the range of R70/m²/month to R182/m²/month.
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Rode’s Report 2018:3 15 Capitalization rate equations
Example:
If the gross office rental rate is R80 per rentable m2 per month, then the office capitalization rate % is:
= 13,865 – (0,0313 * 80) = 11,4%.
Industrial property equation
This national equation expresses the relationship between the capitalization rates and gross market rental rates of prime non-leasebacks and secondary industrial buildings.
Please note, the gross market rental rates are those applicable to 1 000 m2 units. The source of the data is this issue of Rode’s Report. The industrial regression equation, which is based on 16 observations, includes all primary and secondary industrial cities.
The updated equation is:
industrial capitalization rate % = 12,905 – (0,0678 * gross rental)
where:
gross rental = the gross market rental per rentable m2 per month as in quarter 2018:3 for prime non-leaseback or secondary industrial space of 1 000 m2, located in primary and secondary industrial cities.
The r-squared = 0,66 (which means market rental levels explain 66% of the variations in capitalization rates, without controlling for other predictors). The standard error (SE) is 0,4 and n = 16.
It is not advisable to use this function for gross market rental rates that fall much outside the range of R26/m²/month to R57/m²/month. Also, remember to use the rental rate applicable to a notional floor area of 1 000 m² (even if the actual floor area is completely different).
Example:
If the gross industrial rental for a 1 000 m² building, located in a primary or secondary industrial city, is R50 per rentable m2 per month, then the industrial capitalization rate % is:
= 12,905 – (0,0678 * 50) = 9,5%.
Warning: To guard against volatility in the latest survey data, the reader is advised also to consult the regression equation and its applicable rental rate in the previous issue of RR, and to consider using a two-quarter average capitalization rate (unsurveyed) if necessary.
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Rode’s Report 2018:3 16 Capitalization rate equations
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Rode’s Report 2018:3 17 Listed property
Chapter 4: Listed property
Listed property companies under the cosh
Kobus Lamprecht
Listed property funds continued to struggle in the third quarter, with the SA listed property index ending September 22% lower compared to September 2017. In fact, prices have declined every month since the start of the year. The price declines pushed up income yields, as can be observed in the graph.
This makes SA listed property still the worst performer among the traditional asset classes (see Table 4.1), with its total r e t u r n d o w n 2 2 % i n t h ef i r s t n i n e months of 2018. Cash (+7,3%) and bonds (+7,1%) had the best total returns over the same period.
Grit is the only Africa-focused real estate company on the JSE and seems to be benefiting from better sentiment towards property in Africa in a tough South African environment, which includes a weak rand.
Fairvest owns shopping centres in lower-income areas and has constantly delivered inflation-beating dividend growth for the past six years.
In Table 4.3 we show the change in distributions of various SA-focused listed property companies for the half- and full-year periods ended June 2018. It is evident in the table that many companies declared distributions that were worse than in the previous comparable period. This was of course to be expected in view of the poor performance of market rentals over the past few years.
Regarding the prospects for short-term earnings and distribution growth for the listed property sector, the macro-environment within which property funds operate will remain tough.
Therefore it is not a surprise that all the companies mentioned in Table 4.3 expect distribution growth to slow further (Growthpoint, Hyprop) or even decline in their next financial period. It seems that single-digit distribution growth (or even less than zero) is the new normal.
In Table 4.2 we show the individual performances of listed property funds for different periods to the end of September 2018. In the first nine months of this year, the share prices of most companies struggled, with the Resilient stable of companies particularly under the cosh. However, some companies performed very well, such as Emira, Transcend, Octodec, Grit and Fairvest.
-40
-20
0
20
40
60
80
-4
-2
0
2
4
05 06 07 08 09 10 11 12 13 14 15 16 17 18
SAPY yieldSAPY price
Yearly change in listed property pricesvs
Yearly change in listed property yields
Cha
nge
in p
rice
(%;
y-o-
y)
Change in yields
(%-points; y-o-y)
Source of data: JSE
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Rode’s Report 2018:3 18 Listed property
The wild card is the performance of offshore properties. Here, the performance of the rand plays an important role for real estate investment
trusts (REITs) reporting in rand currency. At present (September 2018), the weak rand is a positive factor for such companies.
Table 4.1 Asset class performance
Total returns (including income yield and capital return) Index Jan-Sep 2018 12 months to
Sep 2018 JSE All Share -3,8% 3,3%SA listed property (SAPY) -22,2% -15,7%All property (ALPI) -20,0% -13,6%Cash 5,4% 7,3%Bonds 4,8% 7,1%Source: Catalyst Fund Managers; I-Net Bridge
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Rode’s Report 2018:3 19 Listed property
Table 4.2 Annual total returns on listed property funds
to September 2018 Individual stock performance
Jan-Sep 2018 12 months 3 years Accelerate -12,2% -11,6% -3,7%Arrowhead -11,2% -27,4% -8,7%Delta Prop -1,2% -6,3% 4,0%Balwin -28,6% N/A N/ADipula A 1,7% 9,3% 6,6%Dipula B -18,5% -14,5% -1,0%Emira 21,7% 23,6% 4,3%Equites -1,8% 3,5% 26,8%Fairvest 26,6% 22,9% 20,4%Fortress A -0,7% 6,9% 9,9%Fortress B -59,5% -55,9% -16,4%Gemgrow A 1,5% 6,4% 2,6%Gemgrow B 1,3% 2,8% 4,6%Greenbay -45,2% N/A N/AGrit 25,0% N/A N/AGrowthpoint -9,1% 3,5% 4,4%Hospitality -8,2% -22,5% 4,5%Hyprop -15,2% -5,9% -2,8%Indluplace 0,8% -3,5% 0,5%Investec Prop -5,2% 6,2% 6,7%Liberty Two Degrees (L2D) -7,6% -12,8% -MAS -21,7% N/A N/ANepi Rockcastle -35,7% N/A N/AOctodec 13,1% -1,4% 1,8%Rebosis -28,8% -31,9% -5,2%Redefine -2,3% 2,4% 3,1%Resilient -55,7% -49,6% -14,3%SA Corporate -10,1% -11,6% 0,0%Safari -13,9% -16,8% -5,2%Spear -2,6% 0,5% -Stor-Age 6,6% 17,2% -Texton -7,5% -14,4% -6,8%Tower 0,3% -4,6% -2,7%Transcend 11,4% N/A N/AVukile 2,1% 11,1% 12,5%Source: SA REIT Association; Catalyst Fund Managers
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Rode’s Report 2018:3 20 Listed property
Table 4.3 Change in distributions for the half- and full year ended June 2017/18,
as well as 2019 guidance
Company Distribution
change 2017
Distribution change 2018
Distribution change
2019* Period
Emira -2,0% 2,5% N/A Full yearFairvest 10,0% 9,9% 8,0 to 9,0% Full year Fortress-A 4,5% 5,0% 5,0% Full yearFortress-B 25,1% 4,1% -2,2 to 2,2% Full year Growthpoint 6,5% 6,5% 4,5% Full yearHyprop 12,1% 8,8% 5,0 to 7,0% Full year L2D N/A -2,3% N/A Half-yearResilient 16,1% -0,3% -0,9 to - 2,7% Full year SA Corporate 4,4% -3,1% N/A Half-year *Distribution growth expected by companySource: Financial results of the various listed property funds
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Rode’s Report 2018:3 21 Office rentals
Chapter 5: Office rentals
Office rentals weaken Kobus Lamprecht
In the third quarter of 2018 the office market failed to build on the better second quarter performance. Nevertheless, national rentals still managed to grow in line with building-cost inflation, but this is mostly thanks to continued stellar growth in Cape Town. Rentals in other major cities mostly disappointed – a symptom of an oversupply.
Let’s not forget that the economy is in recession, which can be expected to hold back the demand for office space. Therefore, tough times are probably here to stay for a while.
Below we first discuss the national rental performance, before delving into trends in the major cities.
National rental growth driven by Cape Town
Nationally, market rentals for grade A office space grew by 4% in the third quarter of 2018, slowing from the 6% growth recorded in the second quarter. All major cities performed worse than in the previous quarter, except for Cape Town, where rentals added 10%.
No other major region managed to beat inflation. Johannesburg decentralized rentals increased by about 4%, roughly in line with building-cost inflation. Rental rates in Pretoria decentralized increased by 1%, while they fell by 1% in Durban.
In the third quarter of 2018, several nodes in Johannesburg recorded rentals that were lower than in the second quarter of 2018, which is not a surprise given that the city is the economic heartland of South Africa. However, there were some nodes that managed to beat inflation in year-on-year terms, like Rivonia (+17%), Midrand (+13%) and Hyde Park (+13%). Extraordinary growth rates like these can typically be ascribed to the base effect (a year earlier rental levels were very low).
The sharp rise in Rivonia rentals gels with the recent improvement in its vacancy rate (see Chapter 6), not to mention the base effect. Given Rivonia’s excellent access to the N1 bypass, it is surprising that it has been a laggard for quite some time.
Rentals in Rosebank (4%) and Sandton (2%) did grow, but slower than the 5% year-on-year pace both nodes grew at in the second quarter. Sandton’s average vacancy rate is 16,5% due to weak demand and new developments. Astonishingly, 287 000 m² of grade A+ office space came online in the last year. To put this into perspective, the current grade A+ office space in Cape Town, Durban, Port Elizabeth and Pretoria combined totals 259 000 m². The scary part is that 50% of national developments still to open are in these two nodes. For more details on where the biggest office developments are happening, see Table 6.3 in Chapter 6.
200180160140120
100
80
60
40
2096 98 00 02 04 06 08 10 12 14 16 18
PretoriaJohannesburgDurbanCape Town
Nominal decentralized grade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
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Rode’s Report 2018:3 22 Office rentals
In Pretoria decentralized, nominal office rentals increased by 1% from the third quarter of 2017 as vacancy rates remained in double digits. Rentals in the
nodes of Brooklyn/Waterkloof (+4%) and Menlyn (+2%) grew the fastest. Rentals in most of the other nodes declined. Hatfield’s rental rate declined by 3%, not surprising as it is the node with the highest grade A vacancy rate (28%) in Pretoria.
Note that in real terms, Pretoria decentralized rentals have been trending down since 2002, no doubt the result of continued enthusiastic additions to the inventory of office space. Sooner or later, developers will get the message and moderate new additions to the stock. Given the current building construction costs and the low level of grade A rentals, new developments simply aren’t viable – unless one can sign up a long lease at well above ruling market rental levels – a lease with no reversion before the end of year 10.
Rental rates in Durban continue to perform dismally, with rentals in most nodes declining compared to a year ago. Westville rentals fell slightly, but improved compared to the second quarter of 2018, which might indicate that growth in year-on-year terms is not far away. The
200180160140120
100
80
60
40
2096 98 00 02 04 06 08 10 12 14 16 18
ParktownRosebankRivoniaSandton CBD
Nominal Johannesburg decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
160
140
120
100
80
60
4096 98 00 02 04 06 08 10 12 14 16 18
ParktownRosebankRivoniaSandton CBD
Real Johannesburg decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
200180160140120
100
80
60
40
2096 98 00 02 04 06 08 10 12 14 16 18
Randburg FerndaleBryanstonIllovoSandton CBD
Nominal Johannesburg decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
160
140
120
100
80
60
40
96 98 00 02 04 06 08 10 12 14 16 18
Randburg FerndaleBryanstonIllovoSandton CBD
Real Johannesburg decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
200180160140120
100
80
60
40
2096 98 00 02 04 06 08 10 12 14 16 18
CenturionBrooklyn/WaterkloofHatfieldMenlyn
Nominal Pretoria decentralizedgrade-A office rentals
R/m
²(log
sca
le)
Smoothed
Source of data: Rode's Time Series
100
90
80
70
60
50
96 98 00 02 04 06 08 10 12 14 16 18
CenturionBrooklyn/WaterkloofHatfieldMenlyn
Real Pretoria decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
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Rode’s Report 2018:3 23 Office rentals
rental rate in the most popular node, La Lucia/Umhlanga, declined for the fourth consecutive quarter. The vacancy rate of this node continues to worsen (6%), but remains the best in the city. This is also the node for which most developments are earmarked.
Our comments on Pretoria viabilities evidently also apply to Durban (see chart).
Cape Town’s decentralized office nodes continued their remarkable performance in the third quarter of 2018, with year-on-year rental growth of 10%, in line with their low average vacancy rate of 5%. Most nodes recorded rental growth above building-cost inflation. The strongest growth was recorded by Claremont Upper (23%), Century City (17%) and Tyger Valley (12%). Nodes that disappointed include the V&A Waterfront and Rondebosch/Newlands.
Pioneer rentals
Table 5.1 shows the difference between pioneer rentals and grade A market rentals as in the third quarter of 2018. This the reader can use as a rough indication of prospects for eventual market rental growth, should the deus ex machina come down from the skies.
Pioneer rental levels often represent leases signed on newly erected on-demand buildings, and these reflect today’s building costs as developers naturally expect a fair initial yield on their development costs. Thus, when the economy eventually climbs out of its current lethargy, market rentals will in the wake of renewed economic growth shoot up to the levels of these pioneer rentals.
160
140
120
100
80
60
40
96 98 00 02 04 06 08 10 12 14 16 18
BereaLa Lucia Ridge Westville
Nominal Durban decentralizedgrade-A office rentals
R/m
²(log
sca
le)
Smoothed
Source of data: Rode's Time Series
110
100
90
80
70
60
50
4096 98 00 02 04 06 08 10 12 14 16 18
BereaLa Lucia Ridge Westway
Real Durban decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
200
160
120
80
40
96 98 00 02 04 06 08 10 12 14 16 18
Tyger ValleyClaremont UpperCentury City
Nominal Cape Town decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
140
120
100
80
60
4096 98 00 02 04 06 08 10 12 14 16 18
Tyger ValleyClaremont UpperCentury City
Real Cape Town decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
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Rode’s Report 2018:3 24 Office rentals
Note in Table 5.3 that the standard deviations are higher than in normal market circumstances, especially where rentals are north of R150/m². There are two possible reasons for this. First, as the mean rents rise, it is to be expected that the standard deviation will grow in absolute terms. For this reason, a case can be made that one should rather track the coefficient of variation (the standard
deviation divided by the mean). Second, with the huge amount of new space coming on stream, often at pioneer rentals, the market is battling to find a stable mean for grade A space. Thus, the widening spread between the highest and lowest grade A rentals.
This concludes our section on office rentals. The office rental tables follow.
Recap: nominal versus real rentals
The term “nominal” refers to money rentals, whereas the term “real” refers to nominal less inflation.
Rode mostly deflates nominal rentals using the Bureau for Economic Research’s Building Cost Index (BER BCI) to arrive at real rentals. The rationale for using building costs as deflator is the substitution principle and because building costs can serve as a proxy for the replacement costs. To illustrate, why would you buy a property at R110 when you could have it built (replaced) for R100? When rentals are low relative to replacement costs, the upside potential for rentals is great and vice versa. Thus high real rentals (relative to previous periods) may be an indication of a market that is vulnerable to a downswing, and low real rentals indicate great upside potential.
Grateful thanks to our expert panellists for the information they supplied. Codes of the brokers and landlords who contributed to this quarter's survey appear in the table on p. 25. An explanation of the codes can be found on p. xii.
Table 5.1 Pioneer office rentals
Highest gross nominal market rental rate achieved Quarter 2018:3
Rands per rentable m², gross leases (excl. VAT)
Pioneer Normal grade A mean Inferred growth potential
Johannesburg dec. 265 146 81%Pretoria dec. 250 140 79%Durban dec. 210 132 59%Cape Town dec. 250 143 75%
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Rode’s Report 2018:3 25 Office rentals
Table 5.2 Market rental rates for office buildings
Quarter 2018:3 Rands per rentable m² per month, gross leases (excl VAT)
Grade A+
meanGrade A mean
Grade B mean
Grade C mean Broker contributor codes
Johannesburg CBD - 96,00 84,17 66,00 AM,AV,BM,BR,CR,CUS,REW,WHF Braamfontein - 96,29 86,67 71,63 AM,ANV,AV,BM,BR,CR,CUS,GB,LIB,
QU,REW Sandton CBD 222,36 170,77 135,23 108,65 AM,AV,AW,BM,BR,CR,CUS,GB,GH,
GT,OSO,QU,REW,SWI,WHF,ZO Dunkeld West 182,50 146,67 124,58 95,00 AM,ANV,BM,BR,CUS,GB,GH,OSO,
QU,WHF Wierda Valley 172,50 139,81 122,25 95,00 AM,AV,BM,BR,CR,CUS,GB,GH,OSO,
QU,SWI,WHF Randburg Ferndale 107,50 95,88 83,89 70,00 AM,BM,BR,CR,CUS,GB,GH,NH,PRS,
SWI Rivonia - 132,19 101,20 80,71 AM,AV,BM,BR,CR,CUS,GB,GH,GT,
SWI,WHF Rosebank 239,50 182,14 136,67 112,22 AM,ANV,AV,AW,BM,BR,CR,CUS,GB,
GH,GT,OSO,QU,WHF Illovo 205,00 172,00 141,25 102,50 AM,BM,BR,CR,CUS,GB,GH,OSO,
QU,SWI,WHF Illovo Boulevard 213,50 174,00 145,00 107,86 BM,BR,CR,CUS,GB,GH,GT,QU,SWI Chislehurston 175,00 142,50 120,38 99,00 BM,BR,CUS,GB,GH,GT,OSO,
QU,SWI Parktown - 126,38 106,40 85,25 AM,ANV,BM,BR,CR,CUS,GB,GH,
OSO,QU,WHF,ZZ Richmond/Milpark - 110,00 83,75 68,75 BR,CUS Bedfordview 145,00 137,00 117,50 89,00 AM,AV,BM,BR,CR,CUS,GB,LIB,ZZ Bruma - 100,71 83,75 74,17 AM,BM,BR,CR,CUS,GB,LIB,WHF,ZZ Woodmead 152,00 129,72 101,50 84,17 AM,AV,AW,BM,BR,CR,CUS,GB,GH,
GT,MR,SWI,WHF Sunninghill 130,00 95,42 90,31 79,69 AM,AV,BM,BR,CR,CUS,GB,GH,QU,
SWI Bryanston/Epsom Downs
195,45 150,42 121,18 95,45 AM,AV,AW,BM,BR,CR,CUS,GB,GH, GT,OSO,QU,SWI,WHF,ZO
Fourways 181,00 143,13 113,13 94,29 AM,AV,BM,BR,CR,CUS,GB,GH,GT, OSO,SWI,WHF,ZZ
Houghton 173,50 147,50 117,43 103,33 ANV,BM,BR,CUS,GB,GH,GT,OSO, QU
Melrose Arch 227,86 213,00 160,00 - ANV,AV,AW,BM,BR,CR,CUS,GB,GH, GT,OSO,QU,REW,SWI
Hyde Park 173,33 155,71 129,29 108,20 AM,ANV,BM,BR,CUS,GB,GH,GT, OSO,QU
Eastgate/Kramerville - - 102,50 70,00 CUS,GH,MR Ormonde - - 77,50 70,00 BM,CUS Midrand 177,80 128,75 99,50 72,78 AM,AW,BM,BR,CR,CUS,GB,GH,MR,
WHF,ZZ Hendrik Potgieter Corridor
- 117,83 93,75 79,00 BM,BR,CUS,RA,REN,ZO
Waterfall 210,36 185,00 - - BM,BR,CR,CUS,GB,GH,GT,MR,QU For definitions, see Glossary of terms and abbreviations in Annexure 1 or visit www.rode.co.za.
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Rode’s Report 2018:3 26 Office rentals
Table 5.2 (continued) Market rental rates for office buildings
Quarter 2018:3 Rands per rentable m² per month, gross leases (excl VAT)
Grade A+ mean
Grade A mean
Grade B mean
Grade C mean Broker contributor codes
Waverley/Bramley 160,83 132,50 109,50 84,00 ANV,BR,CUS,GB,GH East Rand - - - - Germiston - - - - Benoni CBD - - - - Benoni dec. - - - - Pretoria CBD - 91,67 85,00 68,33 AP,BR,CI,CRI,WHF Lynnwood Glen - 110,00 105,00 76,67 ABA,AP,CRI,WHF Lynnwood - 122,50 110,00 70,00 BR,CRI,WHF Lynnwood Manor - 143,33 140,00 95,00 AP,CRI,WHF Lynnwood Ridge - 140,00 - 95,00 AP,CRI,WHF Faerie Glen 160,00 142,50 135,00 120,00 AP,BR,CRI Val de Grace - - 100,00 - CI,CRI Menlyn 195,00 172,50 136,67 115,00 AP,BR,CRI,WHF Menlo Park (Brooks St)
180,00 161,67 136,67 88,33 AP,BR,CRI
Brooklyn/Waterkloof 190,00 165,00 133,33 102,50 AP,BR,CRI Nieuw Muckleneuk 180,00 152,50 133,33 111,67 AP,BR,CRI Hatfield/Hillcrest 170,00 130,00 116,67 80,00 AP,BR,CI,CRI,WHF Centurion - 135,00 103,33 86,67 AP,CRI,HN,WHF Highveld Technopark 157,50 135,00 113,33 98,33 AP,CRI,HN,WHF Sunnyside - - 80,00 72,50 AP,BR,CI,CRI Arcadia 140,00 117,50 86,67 75,00 AP,BR,CI,CRI Murrayfield 150,00 135,00 130,00 100,00 AP Route 21 Corp. Park 147,50 125,50 122,50 107,50 ABA,AP,MAS Irene (excl. Route 21 Corp. Park)
180,00 130,00 120,00 110,00 AP
Silver Lakes 200,00 190,00 170,00 150,00 AP Nelspruit CBD - - 110,00 75,00 HH,KEL,PM,RZ Nelspruit dec. 165,00 150,00 125,00 85,00 HH,KEL,PM,RZ Polokwane 172,50 138,63 105,67 77,50 ES,MO,RY,SF,TG Bloemfontein CBD - 115,00 85,00 72,33 EK,EQV,NR Westdene 135,00 120,00 93,33 77,50 EK,EQV,MI,NR Durban CBD - 101,67 76,67 60,00 ACU,BR,SRE Durban Berea - 118,33 105,00 90,00 ACU,BR,SRE Essex Terrace - 116,67 103,33 96,67 ACU,BR,RM,SRE,SWI Westway - 131,25 120,00 110,00 ACU,BR,SRE,SWI La Lucia Ridge 180,88 143,33 131,67 115,00 ACU,BR,GI,RM,SRE,SWI Westville CBD 126,67 120,00 117,00 102,50 ACU,BR,GI,SRE,SWI Pinetown - 92,50 85,00 70,00 BR,SRE,SWI Hillcrest-Kloof (Upper Highway)
137,50 110,00 102,50 - BR,SRE
Umhlanga 173,33 145,63 136,67 - ACU,BR,GI,SRE,SWI Ballito 130,00 117,50 110,00 - BR,SRE Port Elizabeth CBD 80,00 75,00 63,33 56,25 BR,HS,NRG,TR Greenacres: Parks 123,33 106,67 83,33 65,00 BR,HS,MY,NRG Greenacres: Single 101,25 90,00 76,25 67,50 BR,HS,MY,NRG For definitions, see Glossary of terms and abbreviations in Annexure 1 or visit www.rode.co.za.
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Rode’s Report 2018:3 27 Office rentals
Table 5.2 (continued) Market rental rates for office buildings
Quarter 2018:3 Rands per rentable m² per month, gross leases (excl VAT)
Grade A+
meanGrade A mean
Grade B mean
Grade C mean Broker contributor codes
Walmer Park 1, 2 & 3 102,50 92,50 80,00 75,00 BR,MY South End 110,00 100,00 85,00 70,00 BR,NRG Humerail/Humewood 144,50 115,00 92,50 75,00 BR,NRG Newton Park/Cape 120,00 103,33 80,00 67,50 BR,HS,MY,NRG,TR Road East London CBD - 85,00 65,00 60,00 CHR,ER,GW Southernwood 122,00 103,50 88,50 75,00 CHR,EB,ER Berea 119,00 102,33 91,75 66,67 CAP,CHR,EB,ER Chiselhurst - 110,00 80,00 60,00 CHR,ER Beacon Bay 146,67 116,67 93,33 70,00 CAP,CHR,ER Vincent 117,50 105,00 88,33 62,50 CAP,CHR,ER Cape Town CBD 184,17 147,00 115,00 92,50 AN,AP,CR,IK,JR,NX,PCP,RPR
WHF Sea Point 173,33 150,00 115,00 102,50 AN,CR,IK,NX,RPR,WHF Waterfront: Portswood Ridge
216,67 180,00 140,00 - AN,CR,IK,NX,PCP,RPR
Waterfront: Silo District
221,25 188,33 - - CR,IK,NX,PCP,RPR
Granger Bay 185,00 178,75 - - AN,CR,IK,NX,RPR Salt River 130,00 120,00 101,67 76,67 AN,CR,DN,IK,NX,WHF Woodstock 150,00 138,33 106,25 78,33 AN,CR,IK,NX Observatory 138,75 133,33 86,25 75,00 CR,DN,IK,NX,PL,RPR,RR Mowbray 130,00 121,67 94,25 75,00 CR,IK,IKP,NX,PL,RPR,WA,
WHF Kenilworth (Racecourse)
130,00 121,25 105,00 - CR,IK,NX, RPR,RR,WA
Rondebosch 145,00 131,25 108,75 95,00 CR,IK,NX,PL,PX,RPR,WA,WHF Newlands 208,00 165,00 127,50 - AP,CR,IK,NX,RPR,WA Wynberg 115,00 110,00 80,00 77,50 CR,IK,NX,PL,RPR,WA Westlake 137,50 129,80 120,00 - CR,IK,IKP,NX,RPR,RR,WA Tokai 135,00 127,00 109,00 70,00 CR,IK,NX,RPR,RR,WA,WHF Claremont Lower* - 128,50 105,00 - AP,CR,NX,RPR,WA Claremont Upper 215,00 170,00 138,75 97,50 AP,CR,IK,NX,RPR,WA Hout Bay 90,00 - CR Noordhoek (Sun Valley)
- - -
Central (Pinelands & Black River Office Park)
- 123,33 103,00 95,00 CR,DW,GAM,IK,NX,RPR,RR
Athlone - - - - Milnerton - 120,00 95,00 - AP,CR,NX Panorama - 150,00 135,00 110,00 CR,RR Table View/Parklands - - 110,00 - CR Century City 186,00 158,78 127,86 111,67 AN,AP,CR,DD,IK,LIB,NX,PF,
RR,WHF *Claremont Lower: east of Main RoadFor definitions, see Glossary of terms and abbreviations in Annexure 1 or visit www.rode.co.za.
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Rode’s Report 2018:3 28 Office rentals
Table 5.2 (continued) Market rental rates for office buildings
Quarter 2018:3 Rands per rentable m² per month, gross leases (excl VAT)
Grade A+
meanGrade A mean
Grade B mean
Grade C mean Broker contributor codes
Maitland - 122,50 86,67 77,50 CR,NX,WHF Goodwood (N1 City) 120,00 113,75 100,00 77,50 AP,CR,DD,NX,PF Tygerberg Hills 161,67 150,00 122,50 100,00 AN,AP,CR,NE,NX,PF,RR Bellville CBD 130,00 115,00 96,00 81,00 CR,DD,DN,NE,NX,OF,PF,
WD,WHF Tyger Valley area 172,56 131,00 116,00 101,25 AN,AP,CA,CR,DD,DN,NE,
NX,OF,PF,PN,RR,WD Durbanville 140,00 123,75 103,00 82,50 CR,DN,NE,NX,PF,WD,WHF Mitchell’s Plain - - - 80,00 CR Airport - - - - CR Khayelitsha - - - - Kuils River 95,00 85,00 80,90 75,00 CR,OF,PF Paarl - 124,00 87,50 62,50 CR,NX,PRU Wellington - 120,00 60,00 40,00 SF Stellenbosch - - - - The Vineyard - - - - Technopark - - - - Other - - - - Helderberg Somerset West CBD - 110,00 - - OF Somerset West Mall - - - - areaStrand - - - - Gordon’s Bay - - - - George Central 142,50 120,00 80,00 63,33 BVF,GRV,MUL George dec. 110,00 100,00 80,00 - BVF Pietermaritzburg Core CBD
120,00 100,00 85,00 65,00 HN
Peripheral CBD 135,00 120,00 100,00 75,00 HN Pietermaritzburg dec. 165,00 135,00 110,00 85,00 HN Richards Bay - - - - Empangeni 90,00 70,00 60,00 50,00 FO Windhoek 250,00 220,00 150,00 100,00 TE For definitions, see Glossary of terms and abbreviations in Annexure 1 or visit www.rode.co.za.
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Rode’s Report 2018:3 29 Office rentals
Table 5.3 Standard deviation of market rental rates for office buildings
Quarter 2018:3 Rands per month
Grade A+ Grade A Grade B Grade C Johannesburg CBD - 8,60 4,49 5,83Braamfontein - 5,23 6,67 7,23Sandton CBD 25,04 19,37 11,72 11,71Dunkeld West 10,31 10,67 9,83 7,75Wierda Valley 10,90 10,07 6,04 13,54Randburg Ferndale 7,50 11,79 12,42 7,64Rivonia - 15,68 9,48 6,23Rosebank 15,56 9,58 8,98 14,93Illovo 10,00 9,27 8,93 12,50Illovo Boulevard 5,39 8,60 10,80 13,32Chislehurston 7,07 9,35 7,81 6,63Parktown - 6,85 7,39 6,17Richmond/Milpark - 0,00 1,25 1,25Bedfordview 10,00 10,77 10,90 8,60Bruma - 6,78 5,35 7,86Woodmead 7,48 9,61 8,96 9,32Sunninghill 5,00 11,58 6,18 6,18Bryanston/Epsom Downs 7,52 7,76 7,47 5,82Fourways 9,72 8,99 7,88 6,78Houghton 16,25 8,04 9,32 12,47Melrose Arch 16,00 14,00 10,00 -Hyde Park 2,36 9,42 4,95 5,38Eastgate/Kramerville - - 17,50 -Ormonde - - 2,50 -Midrand 9,13 14,31 21,50 10,03Hendrik Potgieter Corridor - 3,79 9,60 2,94Waterfall 9,59 5,00 - -Waverley/Bramley 9,20 9,01 12,08 5,83East Rand - - - - Germiston - - - - Benoni CBD - - - - Benoni dec. - - - - Pretoria CBD - 11,79 10,61 2,36 Lynnwood Glen - 30,00 15,00 6,24 Lynnwood - 42,50 29,44 - Lynnwood Manor - 49,22 20,00 - Lynnwood Ridge - - - - Faerie Glen - 7,50 10,80 0,00 Val de Grace - - 15,00 - Menlyn 14,14 12,50 2,36 5,00 Menlo Park (Brooks St) 10,00 6,24 4,71 11,79 Brooklyn/Waterkloof 0,00 5,00 4,71 7,50 Nieuw Muckleneuk 0,00 2,50 9,43 8,50 Hatfield/Hillcrest 0,00 10,00 4,71 10,00 Centurion - - 11,79 10,27 Highveld Technopark 2,50 4,08 4,71 2,36 For definitions, see Glossary of terms and abbreviations in Annexure 1 or visit www.rode.co.za.
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Rode’s Report 2018:3 30 Office rentals
Table 5.3 (continued) Standard deviation of market rental rates for office buildings
Quarter 2018:3 Rands per month Grade A+ Grade A Grade B Grade C
Sunnyside - - 5,00 5,59 Arcadia - 2,50 9,43 7,91 Murrayfield - - - - Route 21 Corp. Park 7,50 15,72 2,50 2,50 Irene (excl. Route 21 Corp. Park) - - - - Silver Lakes - - - - Nelspruit CBD - - 0,00 0,00Nelspruit dec. 0,00 0,00 0,00 0,00Polokwane 22,50 9,82 6,13 2,50Bloemfontein CBD 0,00 0,00 14,72 7,13Westdene 12,25 6,12 6,24 7,50Durban CBD - 2,36 10,27 4,08Durban Berea - 6,24 7,07 12,25Essex Terrace - 6,24 6,24 4,71Westway - 10,23 12,25 -La Lucia Ridge 10,18 6,24 9,43 -Westville CBD 13,12 8,16 11,66 2,50Pinetown - 7,50 18,71 -Hillcrest-Kloof (Upper Highway) 2,50 - 17,50 -Umhlanga 4,71 3,70 10,27 -Ballito - 7,50 10,00 -Port Elizabeth CBD 5,00 0,00 2,36 14,31Greenacres: Parks 4,71 17,00 2,36 3,54Greenacres: Single 20,12 15,41 9,60 7,50Walmer Park 1, 2 & 3 7,50 7,50 0,00 -South End - 0,00 5,00 -Humerail/Humewood 14,50 5,00 7,50 -Newton Park/Cape Road - 4,71 7,91 5,59East London CBD - 5,00 5,00 10,80Southernwood - 13,50 18,50 20,00Berea 2,94 11,15 10,33 6,24Chiselhurst - - - -Beacon Bay 10,27 17,00 4,71 8,16Vincent 2,50 - 8,50 2,50Cape Town CBD 6,07 6,78 5,35 5,59Sea Point 2,36 11,73 10,61 17,50Waterfront: Portswood Ridge 11,79 10,00 - -Waterfront: Silo District 6,50 4,71 - -Granger Bay 4,08 9,60 - -Salt River 18,71 10,80 10,27 2,36Woodstock 0,00 2,36 6,50 4,71Observatory 9,60 14,34 13,86 10,00Mowbray 10,80 9,43 8,32 8,16Kenilworth (Racecourse) - 6,50 10,80 -Rondebosch - 12,44 12,44 15,00Newlands 19,39 12,75 7,50 -Wynberg - 14,14 3,54 7,50Westlake 2,50 6,01 0,00 -
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Rode’s Report 2018:3 31 Office rentals
Table 5.3 (continued) Standard deviation of market rental rates for office buildings
Quarter 2018:3 Rands per month
Grade A+ Grade A Grade B Grade C Tokai 0,00 12,08 10,20 4,08 Claremont Lower* - 8,50 10,80 -Claremont Upper 12,25 10,61 2,17 2,50 Hout Bay - - - - Noordhoek (Sun Valley) - - - - Central (Pinelands & Black River Office Park)
- 4,71 8,12 0,00
Athlone - - - - Milnerton - 5,00 5,00 -Panorama - 5,00 - - Table View/Parklands - - - -Century City 9,17 9,29 7,49 6,24Maitland - 2,50 9,43 2,50Goodwood (N1 City) 0,00 9,60 0,00 12,50 Tygerberg Hills 10,27 5,48 4,33 14,14Bellville CBD 8,16 8,94 10,20 11,14Tyger Valley area 6,41 10,20 10,68 7,40Durbanville 0,00 7,40 13,27 7,50Mitchell’s Plain - - - -Airport - - - -Khayelitsha - - - -Kuils River - - 0,90 0,00Paarl - 17,38 12,50 12,50Wellington - 0,00 0,00 0,00Stellenbosch - - - -The Vineyard - - - -Technopark - - - -Other - - - -Helderberg Somerset West CBD - - - -Somerset West Mall area - - - -Strand - - - -Gordon’s Bay - - - -George Central 2,50 0,00 0,00 4,71George dec. - - - -Pietermaritzburg Core CBD - - - -Peripheral CBD - - - -Pietermaritzburg dec. - - - -Richards Bay - - - -Empangeni - - - -Windhoek - - - -*Claremont Lower: east of Main RoadFor definitions, see Glossary of terms and abbreviations in Annexure 1 or visit www.rode.co.za.
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Rode’s Report 2018:3 32 Office rentals
Table 5.4 Typical rent-free period in months
Average periods on offer in quarter 2018:3 Mean SD
Johannesburg CBD 1,4 0,5Braamfontein 1,4 0,5Sandton CBD 1,5 0,5Dunkeld West 1,3 0,5Wierda Valley 1,4 0,5Randburg Ferndale 1,5 0,7Rivonia 1,3 0,5Rosebank 1,3 0,5Illovo 1,4 0,5Illovo Boulevard 1,4 0,5Chislehurston 1,6 0,9Parktown 1,9 0,8Richmond/Milpark 1,7 0,5Bedfordview 1,4 0,5Bruma 1,6 0,5Woodmead 1,9 0,9Sunninghill 1,9 0,7Bryanston/Epsom Downs 1,4 0,5Fourways 1,3 0,4Houghton 1,3 0,5Melrose Arch 1,4 0,5Hyde Park 1,2 0,4Eastgate/Kramerville 2,2 0,7Ormonde 1,7 0,5Midrand 1,9 0,7Hendrik Potgieter Corridor 1,2 0,2Waterfall 2,0 0,8Waverley/Bramley 1,8 0,6East Rand - -Germiston - -Benoni CBD - -Benoni dec. - -Pretoria CBD 1,0 0,0Lynnwood Glen 1,3 0,3Lynnwood 1,5 0,5Lynnwood Manor 1,0 0,0Lynnwood Ridge 1,0 0,0Faerie Glen 1,8 0,3Val de Grace 1,0 0,0Menlyn 1,7 0,5Menlo Park (Brooks St) 1,0 0,0Brooklyn/Waterkloof 1,5 0,5Nieuw Muckleneuk 1,5 0,5Hatfield/Hillcrest 1,3 0,5
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Rode’s Report 2018:3 33 Office rentals
Table 5.4 (continued) Typical rent-free period in months
Average periods on offer in quarter 2018:3 Mean SD
Centurion 1,0 0,0Highveld Technopark 1,2 0,2Sunnyside 1,0 0,0Arcadia 1,0 0,0Murrayfield 1,0 0,0Route 21 Corp. Park 1,0 -Irene (excl. Route 21 Corp. Park) 1,0 0,0Silver Lakes 1,0 -Nelspruit CBD 1,0 0,0Nelspruit dec. 1,0 0,0Polokwane 2,5 1,1Bloemfontein CBD 2,7 2,4Westdene 2,8 2,2Durban CBD 1,5 0,5Durban Berea 1,5 0,5Essex Terrace 1,5 0,5Westway 1,5 0,5La Lucia Ridge 1,7 0,5Westville CBD 1,5 0,5Pinetown 1,5 0,5Hillcrest-Kloof (Upper Highway) 1,5 0,5Umhlanga 1,7 0,5Ballito 1,5 0,5Port Elizabeth CBD 1,3 0,4 Greenacres: Parks 1,3 0,4 Greenacres: Single 1,0 0,0 Walmer Park 1, 2 & 3 1,0 0,0 South End 1,0 0,0 Humerail/Humewood 1,5 0,5 Newton Park/Cape Road 1,0 0,0 East London CBD - -Southernwood - -Berea 1,0 0,0Chiselhurst 1,0 -Beacon Bay 1,5 0,5Vincent 1,0 -Cape Town CBD 1,3 0,5Sea Point 1,0 0,0Waterfront: Portswood Ridge 1,3 0,5Waterfront: Silo District 1,3 0,5Granger Bay 1,3 0,5Salt River 1,7 0,9Woodstock 1,5 0,5Observatory 1,3 0,4Mowbray 1,8 0,8Kenilworth (Racecourse) 1,1 0,1Rondebosch 1,3 0,4Newlands 1,0 0,0Wynberg 3,0 -
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Rode’s Report 2018:3 34 Office rentals
Table 5.4 (continued) Typical rent-free period in months
Average periods on offer in quarter 2018:3 Mean SD
Westlake 1,3 0,4Tokai 1,3 0,5Claremont Lower* 1,0 0,0Claremont Upper 1,0 0,0Hout Bay - -Noordhoek (Sun Valley) - -Central (Pinelands & Black River Office Park) 1,4 0,4Athlone - -Milnerton 1,0 -Panorama 1,0 -Table View/Parklands - -Century City 1,2 0,4Maitland 1,0 -Goodwood (N1 City) 2,0 -Tygerberg Hills 1,5 0,5Bellville CBD 1,2 0,4Tyger Valley area 1,6 0,7Durbanville 1,0 0,0Mitchell’s Plain - -Airport - -Khayelitsha - -Kuils River 1,0 -Paarl - -Wellington - -Stellenbosch - -The Vineyard - -Technopark - -Other - -Helderberg Somerset West CBD 2,0 -Somerset West Mall area - -Strand - -Gordon’s Bay - -George Central 1,0 0,0George dec. 1,0 -Pietermaritzburg Core CBD - -Peripheral CBD - -Pietermaritzburg dec. - -Richards Bay - -Empangeni 1,0 -Windhoek 1,0 -
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Rode’s Report 2018:3 35 Office rentals
Table 5.5 Market parking rentals
Monthly parking Rands per bay per month (excl. VAT)
as in quarter 2018:3 Covered reserved parking Shade
net Open-
air Gr A+ Gr A Gr B Gr C Johannesburg CBD - 808 673 588 467 431 Braamfontein - 752 690 575 505 431 Sandton CBD 1.083 852 723 621 585 486 Dunkeld West 808 706 617 563 492 390 Wierda Valley 746 719 656 597 483 397 Randburg Ferndale 575 533 463 438 367 267 Rivonia - 636 540 500 479 375 Rosebank 1.125 873 718 600 564 482 Illovo 861 751 652 555 514 427 Illovo Boulevard 922 794 700 625 556 456 Chislehurston 830 700 629 600 492 406 Parktown 804 666 588 525 456 381 Richmond/Milpark - 500 413 325 250 200 Bedfordview 613 600 536 467 450 359 Bruma - 515 465 375 350 303 Woodmead 738 636 550 440 450 370 Sunninghill 617 575 522 450 405 315 Bryanston/Epsom Downs
795 688 600 539 496 400
Fourways 718 607 515 490 407 293 Houghton 767 659 575 543 489 381 Melrose Arch 1.244 1.075 1.083 850 - 600 Hyde Park 775 678 594 564 500 409 Eastgate/Kramerville - 650 517 525 357 267 Ormonde - - 350 300 350 283 Midrand 760 671 556 450 458 360 Hendrik Potgieter Corridor
630 586 486 445 412 334
Waterfall 1.054 900 - - 580 500Waverley/Bramley 825 670 550 510 445 360 East Rand - - - - - -Germiston - - - - - -Benoni CBD - - - - - -Benoni dec. - - - - - -Pretoria CBD - 800 525 425 600 450 Lynnwood Glen 650 650 550 450 350 280 Lynnwood 650 650 600 - 500 333Lynnwood Manor 750 650 550 400 350 250 Lynnwood Ridge 750 625 550 400 350 300 Faerie Glen 750 650 590 500 517 467
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Rode’s Report 2018:3 36 Office rentals
Table 5.5 (continued) Market parking rentals
Monthly parking as in quarter 2018:3 Covered reserved parking Shade
net Open-
air Gr A+ Gr A Gr B Gr C Val de Grace - - - - 350 - Menlyn 750 700 683 650 583 550Menlo Park (Brooks St) 650 633 583 500 450 383 Brooklyn/Waterkloof 750 617 517 475 488 450Nieuw Muckleneuk 675 617 567 550 467 383 Hatfield/Hillcrest 715 650 600 550 500 413Centurion 650 583 483 335 363 299Highveld Technopark 450 467 417 325 343 274 Sunnyside 750 525 400 350 450 325Arcadia 750 600 400 350 450 350Murrayfield 650 550 400 300 250 200 Route 21 Corp. Park 425 425 400 375 350 300 Irene (excl. Route 21 Corp. Park)
400 400 400 400 350 350
Silver Lakes 675 600 575 525 450 325 Nelspruit CBD - - 425 540 275 175Nelspruit dec. 500 480 425 540 275 175 Polokwane 550 404 305 290 240 193 Bloemfontein CBD - 255 230 180 192 - Westdene 335 273 230 220 210 - Durban CBD - 983 900 800 700 650 Durban Berea - 567 475 450 400 300 Essex Terrace - 538 513 450 433 383 Westway 655 638 575 550 450 400 La Lucia Ridge 738 713 630 600 550 506 Westville CBD 633 625 580 488 450 438 Pinetown - 575 483 450 400 317 Hillcrest-Kloof (Upper Highway)
600 575 525 500 425 325
Umhlanga 817 717 658 600 550 531Ballito 625 600 525 - 450 375 East London CBD 450 - - 250 - 250Southernwood 350 - - - 250 250Berea 450 300 - - 350 250Chiselhurst - - - - - -Beacon Bay 450 350 - - 350 150 Vincent 450 300 - - 350 250 Port Elizabeth CBD - - 400 225 - -Greenacres: Parks 350 433 350 250 317 242 Greenacres: Single - 350 350 300 250 150 Walmer Park 1, 2 & 3 500 450 300 200 350 175 South End - - - - 350 250 Humerail/Humewood 525 450 250 200 300 170Newton Park/Cape Road 350 338 288 250 217 175 Cape Town CBD 1.520 1.386 1.300 1.117 900 775 Sea Point 1.550 1.467 - 1.300 1.050 800 Waterfront: Portswood Ridge
1.800 1.717 - - 1.150 900
Waterfront: Silo District 1.800 1.717 - - 1.150 900 Granger Bay 1.775 1.667 - - 1.100 850 Salt River 938 940 850 750 800 450
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Rode’s Report 2018:3 37 Office rentals
Table 5.5 (continued) Market parking rentals
Monthly parking Rands per bay per month (excl. VAT)
as in quarter 2018:3 Covered reserved parking Shade
net Open-
air Gr A+ Gr A Gr B Gr C Woodstock 1.200 1.175 1.100 950 800 625 Observatory 1.000 920 800 675 800 550 Mowbray 1.175 1.183 1.100 775 800 600 Kenilworth (Racecourse) 1.025 1.000 850 - 717 563 Rondebosch 1.300 1.083 950 950 750 675 Newlands 1.475 1.418 1.000 950 950 700 Wynberg - - 600 - - 275Westlake 1.050 963 950 - 717 540Tokai 925 880 725 675 750 450 Claremont Lower* 1.250 1.025 867 775 500 375 Claremont Upper 1.600 1.442 1.150 1.040 775 625 Hout Bay 500 450 400 350 - - Noordhoek (Sun Valley) 900 800 700 600 550 450 Central (Pinelands & Black River Office Park)
- 933 550 500 578 383
Athlone - - - - - -Milnerton - - 550 - - 350Panorama - 950 - - 650 350Table View/Parklands - - - - - -Century City 1.180 1.079 870 800 800 625 Maitland - - - - - -Goodwood (N1 City) 750 675 583 500 475 425 Tygerberg Hills 883 860 713 650 650 517 Bellville CBD 625 570 525 433 517 367 Tyger Valley area 925 908 775 583 579 508 Durbanville 775 790 625 600 550 388 Mitchells Plain - - - - - -Airport - 1.200 - - - -Khayelitsha - - - - - -Kuils River - - - - - 250Paarl - 950 - - 450 250 Wellington - - - - - -Stellenbosch - - - - - -The Vineyard - - - - - -Technopark - - - - - -Other - - - - - -Helderberg Somerset West CBD - - - - - 550 Somerset West Mall area - - - - - - Strand - - - - - -Gordon’s Bay - - - - - -George Central 383 315 237 195 167 115 George dec. - - - - - -Pietermaritzburg Core 460 400 360 310 380 260 CBD Peripheral CBD 400 360 300 300 360 260 Pietermaritzburg dec. 550 460 410 340 380 300 Richards Bay - - - - - -Empangeni 500 300 200 200 - - Windhoek 800 800 700 600 550 450 Claremont Lower: east of Main Road
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Rode’s Report 2018:3 38 Office rentals
Table 5.6 Office rental escalation rates on new leases (%) Average escalation rate on net rentals for quarter 2018:3
Mean Johannesburg CBD 8,0 Braamfontein 8,1 Sandton CBD 8,2 Dunkeld West 8,2 Wierda Valley 8,3 Randburg Ferndale 8,6 Rivonia 8,3 Rosebank 8,1 Illovo 8,3 Illovo Boulevard 8,3 Chislehurston 8,4 Parktown 8,3 Richmond/Milpark 8,3Bedfordview 8,2 Bruma 8,2 Woodmead 8,4 Sunninghill 8,3 Bryanston/Epsom Downs 8,3 Fourways 8,5 Houghton 8,2 Melrose Arch 8,3 Hyde Park 8,1 Eastgate/Kramerville 8,5Ormonde 8,5 Midrand 8,2 Hendrik Potgieter Corridor 8,6 Waterfall 8,3 Waverley/Bramley 8,1East Rand - Germiston - Benoni CBD - Benoni dec. - Pretoria CBD 9,3 Lynnwood Glen 8,8 Lynnwood 8,3 Lynnwood Manor 8,3 Lynnwood Ridge 8,3 Faerie Glen 8,5 Val de Grace 9,0 Menlyn 8,5 Menlo Park (Brooks St) 8,5 Brooklyn/Waterkloof 8,5Nieuw Muckleneuk 8,2 Hatfield/Hillcrest 8,5Centurion 8,5 Highveld Technopark 8,5 Sunnyside 8,9 Arcadia 8,6
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Rode’s Report 2018:3 39 Office rentals
Table 5.6 (continued) Office rental escalation rates on new leases (%) Average escalation rate on net rentals for quarter 2018:3
Mean Murrayfield 8,0 Route 21 Corp. Park 8,0 Irene (excl. Route 21 Corp. Park) 8,0 Silver Lakes - Nelspruit CBD 8,5 Nelspruit dec. 8,5 Polokwane 6,8 Bloemfontein CBD 8,0 Westdene 8,0 Durban CBD 7,8 Durban Berea 7,8 Essex Terrace 7,8 Westway 8,0 La Lucia Ridge 8,4 Westville CBD 8,2 Pinetown 8,2 Hillcrest-Kloof (Upper Highway) 8,0 Umhlanga 8,4 Ballito 8,0 Port Elizabeth CBD 7,0 Greenacres: Parks 8,0 Greenacres: Single 7,8 Walmer Park 1, 2 & 3 7,8 South End 7,8 Humerail/Humewood 8,0 Newton Park/Cape Road 7,7 East London CBD 7,5 Southernwood 6,7 Berea 7,7 Chiselhurst 7,5 Beacon Bay 7,7 Vincent 7,7 Cape Town CBD 8,1 Sea Point 8,1 Waterfront: Portswood Ridge 8,2 Waterfront: Silo District 8,2 Granger Bay 8,1 Salt River 8,2 Woodstock 8,2 Observatory 8,0 Mowbray 8,3 Kenilworth (Racecourse) 8,0 Rondebosch 8,3 Newlands 8,0 Wynberg 8,4 Westlake 8,3 Tokai 8,0 Claremont Lower* 8,0 Claremont Upper 8,0 Hout Bay 8,0 Noordhoek (Sun Valley) 8,0 *Claremont Lower: east of Main Road
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Rode’s Report 2018:3 40 Office rentals
Table 5.6 (continued) Office rental escalation rates on new leases (%) Average escalation rate on net rentals for quarter 2018:3
Mean Central (Pinelands & Black River Office Park) 8,3 Athlone 8,0 Milnerton 8,0 Panorama 8,0 Table View/Parklands 8,0 Century City 8,3 Maitland 8,0 Goodwood (N1 City) 7,8 Tygerberg Hills 8,1 Bellville CBD 8,1 Tyger Valley area 8,1 Durbanville 8,0 Mitchells Plain 8,0 Airport 8,0 Khayelitsha 8,0 Kuils River 8,5 Paarl 8,0 Wellington 8,0 Stellenbosch - The Vineyard - Technopark - Other - Helderberg Somerset West CBD 8,0 Somerset West Mall area - Strand - Gordon’s Bay - George Central 7,7 George dec. - Pietermaritzburg Core CBD 8,0 Peripheral CBD 8,0 Pietermaritzburg dec. 8,0 Richards Bay - Empangeni 8,0 Windhoek 8,0
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Rode’s Report 2018:3 41 Office rentals
Table 5.7 Escalation rates on operating costs (%)
Mean Johannesburg CBD 8,6 Braamfontein 8,7 Sandton CBD 8,4 Dunkeld West 8,7 Wierda Valley 8,8 Randburg Ferndale 9,1 Rivonia 8,8 Rosebank 8,7 Illovo 8,9 Illovo Boulevard 8,9 Chislehurston 8,7 Parktown 8,9 Richmond/Milpark 9,0Bedfordview 8,8 Bruma 8,7 Woodmead 8,8 Sunninghill 8,7 Bryanston/Epsom Downs 8,8 Fourways 9,1 Houghton 8,6 Melrose Arch 8,6 Hyde Park 8,7 Eastgate/Kramerville 9,0Ormonde 9,0 Midrand 8,8 Hendrik Potgieter Corridor 8,9 Waterfall 8,8 Waverley/Bramley 8,5East Rand - Germiston - Benoni CBD - Benoni dec. - Pretoria CBD 10,0 Lynnwood Glen 9,5 Lynnwood 10,0 Lynnwood Manor 9,0 Lynnwood Ridge 9,0 Faerie Glen 9,5 Val de Grace 10,0 Menlyn 9,5 Menlo Park (Brooks St) 9,5 Brooklyn/Waterkloof 9,5Nieuw Muckleneuk 9,0 Hatfield/Hillcrest 9,5Centurion 9,0 Highveld Technopark 9,0 Sunnyside 10,0
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Rode’s Report 2018:3 42 Office rentals
Table 5.7 (continued) Escalation rates on operating costs (%)
Mean Arcadia 9,5 Murrayfield 8,0 Route 21 Corp. Park 8,0 Irene (excl. Route 21 Corp. Park) 8,0 Silver Lakes - Nelspruit CBD 9,0 Nelspruit dec. 9,0 Polokwane 7,5 Bloemfontein CBD 8,0 Westdene 8,0 Durban CBD 7,8 Durban Berea 7,8 Essex Terrace 7,8 Westway 8,0 La Lucia Ridge 8,4 Westville CBD 8,3 Pinetown 8,0 Hillcrest-Kloof (Upper Highway) 7,8 Umhlanga 8,4 Ballito 8,0 Port Elizabeth CBD 9,0 Greenacres: Parks 9,0 Greenacres: Single - Walmer Park 1, 2 & 3 8,5 South End 9,0 Humerail/Humewood - Newton Park/Cape Road 8,0 East London CBD 8,5 Southernwood 7,5 Berea 7,5 Chiselhurst 10,0 Beacon Bay 10,0 Vincent 10,0 Cape Town CBD 8,0 Sea Point 8,0 Waterfront: Portswood Ridge 8,5 Waterfront: Silo District 8,5 Granger Bay 8,0 Salt River - Woodstock - Observatory 7,8 Mowbray 8,7 Kenilworth (Racecourse) 8,3 Rondebosch 9,0 Newlands 8,7 Wynberg 9,0 Westlake 8,7 Tokai 8,0 Claremont Lower* 8,3 Claremont Upper 8,7 Hout Bay - *Claremont Lower: east of Main Road
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Rode’s Report 2018:3 43 Office rentals
Table 5.7 (continued) Escalation rates on operating costs (%)
Mean Noordhoek (Sun Valley) - Central (Pinelands & Black River Office Park) 8,3 Athlone - Milnerton 8,0 Panorama 8,0 Table View/Parklands - Century City 8,5 Maitland - Goodwood (N1 City) 7,5 Tygerberg Hills 8,0 Bellville CBD 8,4 Tyger Valley area 8,4 Durbanville 8,3 Mitchells Plain - Airport 8,0 Khayelitsha - Kuils River - Paarl - Wellington - Stellenbosch - The Vineyard - Technopark - Other - Helderberg - Somerset West CBD 9,0 Somerset West Mall area - Strand - Gordon’s Bay - George Central 8,2 George dec. 7,0 Pietermaritzburg Core CBD 7,5 Peripheral CBD 7,5 Pietermaritzburg dec. 8,0 Richards Bay - Empangeni - Windhoek 10,0
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Rode’s Report 2018:3 44 Office demand and vacancies
Chapter 6: Office demand and vacancies
Vacancy rates remain high Kobus Lamprecht
In the second quarter of 2018, the national decentralized vacancy rate for grades A and B offices combined decreased to 10,2% from 10,5% in the first quarter of 2018, as can be seen in the chart below. This was the fifth consecutive quarter of double-digit vacancy rates, as oversupply continues to plaque the office market.
Evident in the chart is how, since 2015, decentralized office vacancies have moved further away from their long-term average rate of 8%. Also note how decentralized vacancy rates are converging with vacancy rates of CBDs (12,7%).
The Johannesburg decentralized vacancy rate for grades A and B office space improved slightly in the second quarter of 2018, but remained elevated at 11,4%. The high vacancy rates can largely be ascribed
to Sandton and Midrand, the two biggest office nodes in decentralized Johannesburg.
Sandton’s vacancy rate rose to 16,5%, the third consecutive quarterly increase. This is represented by sky-high vacancy rates for grades A (22%) and B (34%) space due to the popularity of new grade A+ supply (only 6% vacant). Office space under construction in the second quarter totalled 173 000 m², 34% of national developments, and should hold back rental growth in the short term. For more details on where the biggest office developments are happening, see Table 6.3 at the end of this chapter.
Midrand’s vacancy rate improved to 13% from 16%, probably continuing to benefit from Waterfall’s popularity. Waterfall’s vacancy rate is only 2%, and although a large volume of new office space (11% of SA; third most after Sandton and Rosebank) is being developed, all is pre-let.
Rosebank is another node proving to be highly sought after, with its vacancy rate declining to 5%, the fourth consecutive quarterly improvement. Given the high demand, new office space under construction is also substantial at 86 000 m², 17% of national development. However, only 58% of this space was pre-let as at the second quarter of 2018, which could pose a risk to vacancy rates down the line.
The popularity of new offices in prime spots, such as Sandton, Waterfall and Sandton is also impacting on vacancy rates of some of the smaller nodes. Sunninghill is a good example – its second-quarter vacancy rate jumped to 15% from 8% in the previous quarter, likely due to PwC’s move to Waterfall. Worryingly, auditors Nkonki is also set to close its doors in Sunninghill after the government cancelled its contract (together with KPMG’s) in the aftermath of a scandal involving the Guptas.
0
4
8
12
16
20
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
National decentralized vacancy rate20-yr avg decentralized vacancy rateNational CBD vacancy rate
National office vacancy ratesGrades A+, A and B combined
Vac
ancy
rat
e(%
)
Source of data: Sapoa; Rode calculations
0
5
10
15
20
25
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Sandton & environsRosebankParktownRivonia
Vac
ancy
(%
)
Decentralized Johannesburg office vacanciesGrade A+, A and B combined
Source of data: Rode's Time Series; Sapoa
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Rode’s Report 2018:3 45 Office demand and vacancies
The Pretoria decentralized vacancy rate of grades A and B combined improved to 11% the only major city other than Cape Town where the decentralized vacancy rate is worse than in the CBD (6%). The explanation for this anomaly is the bulging public service (which, quite rightly, supports the CBD) combined with overenthusiastic development in the suburbs.
Hatfield’s vacancy rate (15%) remained the highest in the Jacaranda City, as shown in the chart below. Centurion’s vacancy rate has improved over the last few quarters, but is still a high 12%. Vacancy rates look rosier in smaller nodes, such as Arcadia (6%) and Silver Lakes (8%).
On average, vacancy rates in Durban decentralized increased slightly to 7,3%. The vacancy rate of Umhlanga/La Lucia, half of decentralized office space, worsened for the third consecutive quarter to about 6%. In contrast, Westville’s vacancy rate (8%) continues to improve. Westville is the second-largest decentralised office node in Durban.
Of the major cities, decentralized vacancy rates remained the lowest in Cape Town (5%).
However, vacancy rates worsened in most nodes during the second quarter, with the biggest change in Century City (10% versus 8% previously). Century City’s high vacancy rate can be attributed to enthusiastic developers who are constantly adding to the stock, and not a lack of demand. In fact, the area is attracting good rental growth, as you will read in Chapter 5. Vacancy rates were the lowest in the V&A Waterfront (1%), Newlands/Rondebosch and Claremont (both 3%).
In the second quarter of 2018, vacancy rates in Port Elizabeth decentralized worsened slightly. This was mainly due to deterioration in the vacancy rate of the biggest node, Greenacres, to 9% from 6%. Newton Park remained the node with the highest vacancy rate (19%).
0
5
10
15
20
25
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Bryanston/Epson DownsIllovoMidrandRandburg
Vac
ancy
(%
)Decentralized Johannesburg office vacancies
Grade A+, A and B combined
Source of data: Rode's Time Series; Sapoa
0
4
8
12
16
20
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
WestvilleBereaLa Lucia/ Umhlanga
Vac
ancy
(%
)
Decentralized Durban office vacanciesGrade A+, A and B combined
Source of data: Rode's Time Series; Sapoa
0
4
8
12
16
20
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Brooklyn/Niew Muckleneuk/Groenkloof/WaterkloofPretoria Other Eastern Suburbs/Route 21Centurion CBDHatfield/Hillcrest
Vac
ancy
(%
)
Decentralized Pretoria office vacanciesGrade A+, A and B combined
Source of data: Rode's Time Series; Sapoa
0
5
10
15
20
25
30
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Rondebosch/NewlandsClaremontCentury CityV&A Waterfront
Vac
ancy
(%
)
Decentralized Cape Town office vacanciesGrade A+, A and B combined
Source of data: Rode's Time Series; Sapoa
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Rode’s Report 2018:3 46 Office demand and vacancies
We conclude this chapter with tables showing the most recent office vacancy rates and stock levels, as well as new developments.
0
10
20
30
40
50
2010 2011 2012 2013 2014 2015 2016 2017 2018
GreenacresNewton ParkWalmer/Fairview
Vac
ancy
(%
)
Decentralized Port Elizabeth office vacanciesGrades A and B combined
Source of data: Rode's Time Series; Sapoa
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Rode’s Report 2018:3 47 Office demand and vacancies
Table 6.1 Sapoa office vacancy factors (%)
Grades A+, A & B June 2017
September 2017
December 2017
March 2018
June 2018
Johannesburg Bedfordview
Grade A+ - - - - -Grade A 8,9 9,4 7,3 16,7 9,1Grade B 10,6 10,3 9,5 14,1 7,6Total 9,3 9,6 7,8 15,8 8,7 BraamfonteinGrade A+ - - - - -Grade A 5,8 4,5 8,1 11,2 8,3Grade B 15,8 18,8 18,8 21,0 17,4Total 9,8 10,2 12,4 15,1 11,9 Bryanston/Epsom DownsGrade A+ - - - 21,7 3,5Grade A 11,6 7,5 8,4 6,5 8,0Grade B 9,8 9,4 9,4 8,2 10,3Total 10,7 8,4 8,9 7,7 8,9 BrumaGrade A+ - - - - -Grade A 5,7 6,8 10,5 9,7 6,2Grade B 18,4 42,0 37,3 42,0 34,0Total 9,8 18,1 18,7 19,6 13,6 CBD JohannesburgGrade A+ - - - - -Grade A 0,2 3,4 3,0 3,1 2,9Grade B 26,0 23,8 22,5 20,7 21,8Total 16,7 16,3 15,3 14,3 14,9 Constantia Kloof BasinGrade A+ - - - - -Grade A 5,3 6,7 4,5 8,7 6,3Grade B 1,2 1,2 2,7 2,7 8,3Total 5,0 6,3 4,4 8,3 6,4 FourwaysGrade A+ 0,0 0,0 0,0 0,0 0,0Grade A 10,2 13,6 14,7 11,3 11,3Grade B 12,4 12,8 11,1 8,2 7,5Total 9,7 11,7 11,8 8,9 8,8 Houghton/KillarneyGrade A+ - - - - -Grade A 9,9 12,4 13,5 13,3 13,6Grade B 0,0 0,0 0,0 0,0 0,0Total 9,7 12,2 13,3 13,1 13,4 Hyde Park/DunkeldGrade A+ - - - - -Grade A 2,7 2,7 1,6 2,7 1,7Grade B 11,2 5,5 5,9 8,1 7,9Total 8,2 4,5 4,4 6,2 5,7 Source of data: Sapoa
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Rode’s Report 2018:3 48 Office demand and vacancies
Table 6.1 (continued) Sapoa office vacancy factors (%)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
Illovo
Grade A+ 0,0 1,1 2,7 3,9 5,8Grade A 11,4 11,7 10,2 11,8 12,5 Grade B 10,5 10,7 12,2 11,7 10,4 Total 10,1 10,5 9,7 10,9 11,6 Melrose/WaverleyGrade A+ 3,9 4,0 3,5 16,7 13,1Grade A 12,8 15,2 21,4 9,5 5,4 Grade B 0,6 0,0 0,0 0,0 0,0 Total 5,8 6,4 8,2 9,4 5,6 MidrandGrade A+ 0,0 0,0 0,0 0,0 0,0Grade A 11,7 15,9 16,1 16,7 13,7 Grade B 16,5 15,6 13,7 14,7 13,2 Total 13,1 15,6 15,1 15,9 13,4 MilparkGrade A+ - - - - -Grade A 0,0 0,0 5,4 3,2 3,2 Grade B 10,3 4,6 9,1 8,5 7,1 Total 8,9 4,0 8,6 7,7 6,6 MorningsideGrade A+ - - - - -Grade A 22,2 20,3 19,8 17,6 11,9 Grade B 19,0 29,9 10,1 8,5 5,4 Total 21,6 21,6 22,4 10,0 ParktownGrade A+ - - - - -Grade A 10,8 15,8 13,4 6,0 6,1 Grade B 14,5 19,1 18,4 18,4 20,1 Total 13,1 17,9 16,2 13,1 14,1 RandburgGrade A+ 0,0 0,0 0,0 0,0 0,0Grade A 6,7 7,0 8,0 9,2 9,4 Grade B 18,4 17,5 18,9 13,3 15,5 Total 14,7 14,1 14,3 11,1 12,6 RivoniaGrade A+ - - - - -Grade A 4,9 8,4 8,1 8,1 8,1 Grade B 15,5 15,9 16,0 15,8 12,6 Total 15,1 15,6 15,7 15,5 12,4 RosebankGrade A+ 3,3 3,3 3,2 0,0 0,0Grade A 22,1 18,8 10,9 11,5 6,9 Grade B 23,6 12,2 12,8 7,4 7,1 Total 18,2 12,3 9,6 6,9 5,2 Sandton & Environs Grade A+ 6,5 4,8 6,5 6,3 6,4Grade A 17,3 16,5 17,6 19,7 21,6 Grade B 11,7 11,7 25,9 34,2 33,4 Total 12,8 11,3 14,0 15,9 16,5 Source of data: Sapoa
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Rode’s Report 2018:3 49 Office demand and vacancies
Table 6.1 (continued) Sapoa office vacancy factors (%)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
SunninghillGrade A+ - - - - -Grade A 10,4 8,4 12,1 12,2 26,6Grade B 4,1 5,3 4,6 4,6 4,6Total 7,0 6,7 8,1 8,1 14,8 Waterfall Grade A+ - - 8,0 8,6 3,1Grade A - - 1,1 1,1 1,1Grade B - - - - -Total 4,2 4,7 2,4 WoodmeadGrade A+ - - - - -Grade A 7,3 7,3 7,2 7,1 6,3Grade B 27,9 7,1 5,4 5,4 6,5Total 13,7 7,2 6,7 6,6 6,4 Cresta/Blackheath to RandparkGrade A+ 0,0 0,0 0,0 0,0 0,0Grade A 12,8 12,8 11,1 21,9 11,2Grade B 5,6 7,0 7,3 9,7 14,2Total 5,4 5,8 5,3 10,3 7,3 GreenstoneGrade A+ 0,0 0,0 0,0 - -Grade A 6,4 5,2 5,5 3,3 2,8Grade B - - - - -Total 4,9 4,0 4,2 3,3 2,8 NewtownGrade A+ 0,0 0,0 0,0 0,0 0,0Grade A 5,6 5,6 3,0 3,0 3,0Grade B 27,4 27,4 23,2 23,2 23,2Total 13,7 13,7 12,9 10,9 10,9
Cape Town BellvilleGrade A+ 19,6 19,6 - 12,8 12,5Grade A 0,6 1,4 1,8 1,6 1,7Grade B 8,8 9,7 10,0 8,4 8,4Total 3,4 4,2 4,3 3,9 3,9 CBD Cape TownGrade A+ 13,7 10,6 10,6 9,8 9,0Grade A 8,3 6,7 6,0 8,8 7,7Grade B 11,4 10,9 10,4 11,5 11,0Total 10,3 9,3 8,7 10,4 9,6 Century CityGrade A+ 4,2 4,2 3,1 2,0 12,7Grade A 9,3 8,7 8,5 8,9 9,6Grade B 4,1 4,7 5,3 9,5 9,4Total 8,0 7,6 7,4 8,0 10,1 ClaremontGrade A+ 6,4 0,0 0,0 0,0 0,0Grade A 2,5 0,3 1,3 1,0 1,8Grade B 3,8 3,9 9,6 2,3 4,2Total 3,2 1,7 4,5 1,4 2,7 Source of data: Sapoa
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Rode’s Report 2018:3 50 Office demand and vacancies
Table 6.1 (continued) Sapoa office vacancy factors (%)
Grades A+, A & B June 2017
September 2017
December 2017
March 2018
June 2018
Central (Pinelands & Black River Office Park) Grade A+ - - - - -Grade A 1,2 1,1 1,5 1,1 1,7Grade B 9,8 5,2 5,6 9,0 9,1Total 2,2 1,5 2,0 2,0 2,5 Rondebosch/NewlandsGrade A+ - - - - -Grade A 3,2 3,1 4,9 1,1 3,5Grade B 11,2 8,6 9,3 1,6 0,7Total 5,6 4,8 6,2 1,2 2,6 WaterfrontGrade A+ 8,0 6,3 6,2 4,6 1,4Grade A 0,3 1,7 2,8 1,9 0,3Grade B 0,0 0,0 0,0 0,0 3,4Total 3,4 3,5 4,0 2,9 0,9
Durban BereaGrade A+ - - - - -Grade A 3,5 1,6 2,8 5,5 3,9Grade B 16,7 14,9 15,0 12,6 13,3Total 8,6 6,7 7,5 8,1 7,4 BallitoGrade A+ 0,0 0,0 2,8 2,8 1,3Grade A 23,1 22,9 13,0 15,1 13,5Grade B 6,1 4,0 5,0 2,4 6,4Total 17,2 16,7 8,7 8,6 8,6 Hillcrest/GillitsGrade A+ 10,7 8,2 11,9 12,4 -Grade A 9,4 9,8 9,8 10,3 10,7Grade B 5,2 5,2 5,2 4,8 10,1Total 8,9 8,9 9,3 9,6 10,6 CBD Durban Grade A+ - - - - -Grade A 21,4 19,5 19,7 27,1 22,1Grade B 15,7 12,3 17,1 19,3 17,9Total 18,5 15,6 18,3 22,9 19,9 Umhlanga/La LuciaGrade A+ 1,9 1,9 1,9 2,0 11,3Grade A 5,4 3,2 3,7 4,9 5,6Grade B 3,0 7,9 8,8 9,5 6,4Total 5,1 3,4 4,0 5,0 6,4 WestvilleGrade A+ - - - - -Grade A 16,2 12,4 11,0 8,7 8,7Grade B 9,3 10,3 10,2 10,4 8,0Total 11,6 11,0 10,5 9,8 8,3 Source of data: Sapoa
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Rode’s Report 2018:3 51 Office demand and vacancies
Table 6.1 (continued) Sapoa office vacancy factors (%)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
Pretoria ArcadiaGrade A+ - - - - -Grade A 7,6 7,6 7,6 7,6 7,6Grade B 10,1 10,4 10,2 4,6 4,6 Total 8,8 8,9 8,9 6,1 6,1 Brooklyn/Waterkloof/ Nieuw Muckleneuk/Groenkloof Grade A+ - - - - -Grade A 4,2 4,0 4,3 5,0 8,1Grade B 9,6 13,2 20,1 11,9 11,0Total 7,0 8.8 12,6 8,6 9,6 CBD PretoriaGrade A+ - - - - -Grade A 1,3 1,3 1,3 1,3 1,1Grade B 12,9 12,8 12,8 6,7 7,7 Total 9,9 9,8 9,8 5,3 6,0 Centurion CBDGrade A+ - - - - -Grade A 10,0 10,0 8,0 3,8 4,1Grade B 22,4 22,5 23,0 19,7 19,4Total 16,5 16,5 15,2 12,0 11,9 Hatfield/HillcrestGrade A+ - - - - -Grade A 13,2 12,0 14,7 34,2 27,8Grade B 7,9 7,8 8,4 7,8 8,6Total 9,5 9,1 10,3 16,9 15,0 Highveld TechnoparkGrade A+ - - - - -Grade A 11,2 9,4 9,2 14,0 13,4 Grade B 10,0 9,9 9,8 10,4 10,7 Total 10,9 9,5 9,4 12,7 12,5 Menlyn/Faerie Glen/Ashlea Gardens Grade A+ - - - - -Grade A 13,6 14,9 11,4 11,5 9,6Grade B 11,7 9,9 10,1 7,3 6,3Total 12,9 13,1 10,9 10,0 8,5 Pretoria other Eastern suburbs/Route 21 Grade A+ - - - - -Grade A 9,7 9,8 7,6 7,9 5,0Grade B 11,6 13,9 10,2 13,6 13,4Total 11,1 12,8 9,5 12,1 10,9 Lynnwood/Menlo Park/ Persequor Park/Hazelwood Grade A+ 1,7 1,9 1,1 2,3 1,2Grade A 4,1 8,9 14,4 14,1 14,9Grade B 15,2 15,2 13,4 13,6 13,8Total 9,0 10,6 11,5 11,8 12,1 Silver Lakes/The Willows Grade A+
Grade A 3,7 3,7 3,3 9,4 9,1Grade B 2,5 6,0 6,0 6,0 5,6Total 3,3 4,4 4,1 8,4 8,1 Source of data: Sapoa
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Rode’s Report 2018:3 52 Office demand and vacancies
Table 6.1 (continued) Sapoa office vacancy factors (%)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
Port Elizabeth GreenacresGrade A+ 0,0 0,0 0,0 0,0 0,0Grade A 7,7 4,8 5,3 5,3 3,8Grade B 13,3 9,6 7,4 7,4 11,0Total 11,0 7,8 6,5 6,3 8,5 Newton ParkGrade A+ 4,8 4,8 4,8 16,8 16,8Grade A 0,0 0,0 0,0 0,0 0,0Grade B 28,7 34,2 34,2 34,2 34,2Total 8,6 9,5 9,5 19,0 19,0 Central/Park DriveGrade A+ - - - - -Grade A - - - - -Grade B 0,0 0,0 0,0 0,0 0,0Total 0,0 0,0 0,0 0,0 0,0 Walmer/FairviewGrade A+ - - - - -Grade A 8,6 1,2 8,3 7,8 7,6Grade B 11,4 11,4 11,4 12,3 12,3Total 8,9 2,4 8,7 8,3 8,1 Humerail Grade A+ Grade A - - 0,0 5,5 4,6 Grade B - - - - - Total 0,0 5,5 4,6
Major cities Johannesburg central Grade A+ - - - - -Grade A 1,8 3,7 4,4 5,4 4,4Grade B 24,7 23,1 22,1 20,8 21,2Total 15,4 15,1 14,8 14,4 14,3 Johannesburg decentralizedGrade A+ 4,5 3,6 4,8 5,4 4,9 Grade A 11,8 12,0 11,6 12,1 11,6 Grade B 14,4 13,0 14,0 14,6 14,1 Total 11,7 11,1 11,3 11,8 11,4 Pretoria decentralizedGrade A+ 1,7 1,9 1,1 2,3 1,2Grade A 9,8 9,7 9,1 11,5 10,7 Grade B 12,5 13,2 13,1 11,7 11,6Total 11,0 11,2 10,9 11,5 11,0 Durban decentralizedGrade A+ 3,3 2,1 3,5 3,2 10,2Grade A 8,0 5,8 5,1 6,0 6,4Grade B 9,5 10,3 10,3 10,0 8,6Total 8,2 6,8 6,5 7,0 7,3 Cape Town decentralized Grade A+ 7,4 6,3 4,4 4,1 7,7Grade A 3,0 3,1 3,5 3,1 3,5Grade B 7,7 7,4 8,6 6,9 7,2Total 4,3 4,2 4,6 4,0 4,6 Source of data: Sapoa
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Rode’s Report 2018:3 53 Office demand and vacancies
Table 6.1 (continued) Sapoa office vacancy factors (%)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
National decentralized Grade A+ 4,6 3,8 4,6 5,3 5,4 Grade A 9,7 9,5 9,2 10,0 9,7 Grade B 13,1 12,5 13,1 12,9 12,6 Total 10,4 10,0 10,1 10,5 10,2 National CBDs Grade A+ 2,7 2,1 2,1 1,9 1,7Grade A 6,4 6,8 7,0 9,3 7,7 Grade B 18,7 17,4 17,3 16,1 16,2 Total 14,2 13,5 13,0 13,1 12,7 Source of data: Sapoa
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Rode’s Report 2018:3 54 Office demand and vacancies
Table 6.2 Sapoa office stock (m²)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
Johannesburg BedfordviewGrade A+
Grade A 181 091 183 819 193 319 176 259 186 435 Grade B 50 717 57 919 57 919 57 919 57 919 Total 231 808 241 738 251 238 243 178 244 354 BraamfonteinGrade A+
Grade A 215 721 215 721 215 721 215 721 215 721 Grade B 142 838 141 838 141 838 141 838 141 838 Total 358 559 357 559 357 559 357 559 357 559 Bryanston/Epsom Downs Grade A+ 15 630 15 630 Grade A 308 625 304 902 297 902 300 902 299 102 Grade B 290 183 261 339 261 339 263 245 254 627 Total 598 808 566 241 559 241 579 777 569 359 BrumaGrade A+
Grade A 70 083 70 183 70 469 70 469 65 739 Grade B 33 322 33 322 31 036 31 036 23 620 Total 103 405 103 505 101 505 101 505 89 359 CBD Johannesburg Grade A+
Grade A 558 173 558 173 558 173 547 277 558 173 Grade B 987 362 960 410 958 247 954 647 976 325 Total 1 545 535 1 518 583 1 516 420 1 501 924 1 534 498 Constantia Kloof Grade A+
Grade A 312 788 312 788 312 788 312 838 308 559 Grade B 21 743 21 743 21 743 21 743 21 743 Total 334 531 334 531 334 531 334 581 330 302 FourwaysGrade A+ 25 000 25 000 25 000 25 000 25 000 Grade A 118 767 118 767 120 527 120 527 120 527 Grade B 73 365 73 365 73 365 73 365 73 365 Total 217 132 217 132 218 892 218 892 218 892 Houghton/KillarneyGrade A+
Grade A 122 284 122 284 124 822 124 822 124 822 Grade B 2 200 2 200 2 200 2 200 2 200 Total 124 484 124 484 127 022 127 022 127 022 Source of data: Sapoa
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Rode’s Report 2018:3 55 Office demand and vacancies
Table 6.2 (continued) Sapoa office stock (m²)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
Hyde Park/Dunkeld Grade A+
Grade A 40 867 40 867 40 867 40 867 40 867 Grade B 74 533 71 233 75 233 75 233 75 233 Total 115 400 112 100 116 100 116 100 116 100 IllovoGrade A+ 22 600 22 600 22 600 22 600 22 600 Grade A 172 452 172 452 172 452 172 452 178 352 Grade B 27 164 27 164 27 164 27 164 27 164 Total 222 216 222 216 222 216 222 216 228 116 Melrose/WaverleyGrade A+ 116 000 116 000 116 000 21 479 21 479 Grade A 44 799 44 799 50 799 166 799 167 128 Grade B 16 697 16 697 16 697 16 697 16 697 Total 177 496 177 496 183 496 204 975 205 304 MidrandGrade A+ 8 000 8 000 8 000 8 000 8 000 Grade A 414 352 416 102 416 086 422 654 418 554 Grade B 196 772 203 245 208 047 208 047 205 515 Total 619 124 627 347 632 133 638 701 632 069 MilparkGrade A+
Grade A 27 900 27 900 27 900 27 900 27 900 Grade B 178 926 169 326 169 326 169 326 169 326 Total 206 826 197 226 197 226 197 226 197 226 MorningsideGrade A+
Grade A 68 727 66 205 64 647 69 209 78 025 Grade B 16 200 18 722 33 722 33 722 33 722 Total 84 927 84 927 98 369 102 931 111 747 ParktownGrade A+
Grade A 132 556 138 056 179 256 169 256 169 256 Grade B 214 213 226 713 226 713 226 713 226 713 Total 346 769 364 769 405 969 395 969 395 969 RandburgGrade A+ 47 000 47 000 47 000 32 000 32 000 Grade A 60 174 57 174 93 529 108 529 111 229 Grade B 323 378 316 128 276 795 260 955 263 206 Total 430 552 420 302 417 324 401 484 406 435 Source of data: Sapoa
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Rode’s Report 2018:3 56 Office demand and vacancies
Table 6.2 (continued) Sapoa office stock (m²)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
RivoniaGrade A+
Grade A 10 500 10 500 10 873 10 873 10 873 Grade B 264 349 252 213 262 483 262 483 263 519 Total 274 849 262 713 273 356 273 356 274 392 RosebankGrade A+ 90 000 90 000 94 680 94 680 94 680 Grade A 137 501 129 163 129 163 129 163 147 941 Grade B 146 421 134 971 135 254 131 754 131 954 Total 373 922 354 134 359 097 355 597 374 575 Sandton & Environs Grade A+ 589 530 656 590 734 013 868 397 877 083 Grade A 880 483 811 303 735 613 652 786 619 254 Grade B 214 035 214 035 241 521 319 804 342 588 Total 1 684 048 1 681 928 1 711 147 1 840 987 1 838 925 SunninghillGrade A+
Grade A 166 729 166 729 168 831 167 631 167 631 Grade B 191 181 189 076 194 849 194 849 194 849 Total 357 910 355 805 363 680 362 480 362 480 Waterfall Grade A+ - - 43 850 50 097 95 097 Grade A - - 52 435 52 464 52 464 Grade B - - - - - Total 96 285 102 561 147 561 WoodmeadGrade A+
Grade A 280 086 280 086 320 184 320 184 194 469 Grade B 127 330 127 330 127 330 127 330 253 045 Total 407 416 407 416 447 514 447 514 447 514 Cresta/Blackheath to Rand Park Grade A+ 75 000 75 000 75 000 75 000 75 000 Grade A 54 110 54 110 54 110 68 150 61 109 Grade B 42 035 42 035 42 035 27 995 45 456 Total 171 145 171 145 171 145 171 145 181 565 GreenstoneGrade A+ 16 400 16 400 16 400 - - Grade A 54 214 54 214 54 214 70 614 70 614 Grade B - - - - -Total 70 614 70 614 70 614 70 614 70 614 NewtownGrade A+ 30 000 30 000 30 000 30 000 30 000 Grade A 79 683 79 683 79 683 79 683 79 683 Grade B 77 700 77 700 77 700 77 700 77 700 Total 187 383 187 383 187 383 187 383 187 383
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Rode’s Report 2018:3 57 Office demand and vacancies
Table 6.2 (continued) Sapoa office stock (m²)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
Cape Town BellvilleGrade A+ 10 600 10 600 - 10 600 10 600 Grade A 369 797 369 797 369 797 369 797 369 797 Grade B 161 441 161 441 161 441 161 441 161 641 Total 541 838 541 838 531 238 541 838 542 038 CBD Cape Town Grade A+ 52 000 52 000 52 000 52 000 52 000 Grade A 361 883 361 883 361 883 361 883 361 883 Grade B 522 710 514 710 515 262 526 286 527 386 Total 936 593 928 593 929 145 940 169 941 269 Century CityGrade A+ 45 880 45 880 45 880 45 880 62 880 Grade A 252 469 252 469 252 669 250 369 250 928 Grade B 39 563 39 563 39 563 41 931 41 931 Total 337 912 337 912 338 112 338 180 355 739 ClaremontGrade A+ 6 000 6 000 6 000 6 000 6 000 Grade A 62 636 62 636 62 636 62 636 62 636 Grade B 45 286 45 286 45 286 45 286 45 286 Total 113 922 113 922 113 922 113 922 113 922 Central (Pinelands & Black River Office Park) Grade A+ Grade A 272 975 272 975 272 975 272 975 272 975 Grade B 36 741 36 741 36 741 36 741 36 741 Total 309 716 309 716 309 716 309 716 309 716 Rondebosch/NewlandsGrade A+ Grade A 71 654 71 654 71 654 71 654 71 654 Grade B 30 877 30 877 30 877 30 877 30 877 Total 102 531 102 531 102 531 102 531 102 531 WaterfrontGrade A+ 51 000 51 000 51 000 51 000 51 000 Grade A 69 555 69 555 69 555 69 555 69 555 Grade B 6 298 6 298 6 298 6 298 6 298 Total 126 853 126 853 126 853 126 853 126 853 Source of data: Sapoa
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Rode’s Report 2018:3 58 Office demand and vacancies
Table 6.2 (continued) Sapoa office stock (m²)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
Durban Berea Grade A+
Grade A 55 621 55 621 55 621 59 991 59 991 Grade B 34 983 34 983 34 983 34 983 34 983 Total 90 604 90 604 90 604 94 974 94 974 BallitoGrade A+ 7 144 7 144 3 512 3 512 7 144 Grade A 36 575 36 575 15 913 15 913 15 215 Grade B 8 578 8 578 13 207 13 207 10 593 Total 52 297 52 297 32 632 32 632 32 952 Hillcrest/GillitsGrade A+ 6 267 3 087 4 497 3 180 - Grade A 26 965 30 145 28 735 30 052 34 352 Grade B 6 402 6 402 6 402 6 402 6 402 Total 39 634 39 634 39 634 39 634 40 754 CBD Durban Grade A+
Grade A 207 704 203 280 203 280 203 280 206 195 Grade B 212 055 236 131 236 131 236 131 233 216 Total 419 759 439 411 439 411 439 411 439 411 Umhlanga/La Lucia Grade A+ 22 395 22 395 22 395 22 395 56 238 Grade A 329 962 364 896 361 953 364 696 339 795 Grade B 25 251 27 675 33 267 27 764 34 426 Total 377 608 414 966 417 615 414 855 430 459 WestvilleGrade A+
Grade A 65 221 64 901 65 221 65 221 65 221 Grade B 136 555 136 537 136 537 136 537 136 537 Total 201 776 201 438 201 758 201 758 201 758
Pretoria Arcadia Grade A+ Grade A 125 570 125 570 125 570 125 570 125 570 Grade B 119 310 119 310 120 740 120 740 120 740 Total 244 880 244 880 246 310 246 310 246 310
Brooklyn/Waterkloof/ Groenkloof/ Nieuw Muckleneuk
Grade A+ Grade A 121 410 119 350 119 350 119 350 119 350 Grade B 132 964 132 964 132 964 132 964 132 964 Total 254 374 252 314 252 314 252 314 252 314 Source of data: Sapoa
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Rode’s Report 2018:3 59 Office demand and vacancies
Table 6.2 (continued) Sapoa office stock (m²)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
CBD Pretoria Grade A+
Grade A 134 580 134 580 134 580 134 580 134 580 Grade B 378 272 378 272 378 272 378 272 379 081 Total 512 852 512 852 512 852 512 852 513 661 Centurion CBD Grade A+
Grade A 214 430 218 571 251 799 235 619 235 619 Grade B 233 847 233847 233 847 250 027 250 027 Total 448 277 452 418 485 646 485 646 485 646 Hatfield/HillcrestGrade A+
Grade A 86 630 86 630 86 630 102 330 99 330 Grade B 194 890 194 890 194 890 194 920 197 920 Total 281 520 281 520 281 520 297 250 297 250 Highveld Technopark & Extensions Grade A+
Grade A 422 520 422 520 386 160 386 160 390 590 Grade B 167 532 167 532 203 892 203 892 203 892 Total 590 052 590 052 590 052 590 052 594 482 Menlyn/Faerie Glen/Ashlea Gardens Grade A+
Grade A 233 190 245 765 245 765 245 765 245 765 Grade B 135 100 135 100 135 100 135 100 135 100 Total 368 290 380 865 380 865 380 865 380 865 Pretoria other Eastern suburbs/Route 21 Grade A+
Grade A 85 319 88 484 88 484 91 094 87 434 Grade B 252 439 252 439 252 439 248 829 214 909 Total 337 758 340 923 340 923 339 923 302 343 Lynnwood/Menlo Park/ Persequor Park/Hazelwood Grade A+ 44 680 44 680 44 680 44 680 44 680 Grade A 76 157 79 057 85 169 96 529 97 928 Grade B 112 440 112 440 112 440 112 586 115 186 Total 233 277 236 177 242 289 253 795 257 794 Silver Lakes/The Willows Grade A+
Grade A 67 196 67 196 67 196 71 696 74 549 Grade B 30 890 30 425 30 425 30 425 30 425 Total 98 086 97 621 97 621 102 121 104 974 Source of data: Sapoa
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Rode’s Report 2018:3 60 Office demand and vacancies
Table 6.2 (continued) Sapoa office stock (m²)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
Port Elizabeth GreenacresGrade A+ 4 287 4 287 4 287 5 931 4 287 Grade A 18 474 18 474 16 964 16 964 18 608 Grade B 48 416 48 452 48 452 48 452 48 269 Total 71 177 71 213 69 703 71 347 71 164 Newton ParkGrade A+ 16 621 16 621 16 621 16 621 16 621 Grade A 967 967 967 967 967Grade B 3 514 3 514 3 514 3 514 3 514 Total 21 102 21 102 21 102 21 102 21 102 Central/Park DriveGrade A+
Grade AGrade B 8 388 8 366 8 366 8 366 8 366 Total 8 388 8 366 8 366 8 366 8 366 Walmer/FairviewGrade A+
Grade A 21 727 21 807 21 727 23 061 23 601 Grade B 3 011 3 008 3 008 2 800 2 800 Total 24 738 24 815 24 735 25 861 26 401 Humerail Grade A+ Grade A 7 376 10 161 14 161 Grade B Total 7 376 10 161 14 161 Source of data: Sapoa
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Rode’s Report 2018:3 61 Office demand and vacancies
Table 6.2 (continued) Sapoa office stock (m²)
Grades A+, A & BJune 2017
September 2017
December 2017
March 2018
June 2018
Major cities Johannesburg central Grade A+ Grade A 773 894 773 894 773 894 762 998 773 894 Grade B 1 130 200 1 102 248 1 100 085 1 096 485 1 118 163 Total 1 904 094 1 876 142 1 873 979 1 859 483 1 892 057 Johannesburg decentralized Grade A+ 1 019 530 1 086 590 1 212 543 1 251 883 1 296 569 Grade A 3 738 771 3 662 086 3 770 469 3 835 031 3 700 533 Grade B 2 582 464 2 536 476 2 562 471 2 609 280 2 760 161
Total 7 340 765 7 285 152 7 545 483 7 696 194 7 757 263 Pretoria decentralized Grade A+ 44 680 44 680 44 680 44 680 44 680 Grade A 1 432 422 1 453 143 1 456 123 1 474 113 1 473 135 Grade B 1 379 412 1 378 947 1 416 737 1 429 483 1 401 163 Total 2 856 514 2 876 770 2 917 540 2 948 276 2 921 978 Durban decentralized Grade A+ 35 806 32 626 30 404 29 087 63 382 Grade A 514 344 552 138 527 443 535 873 514 574 Grade B 211 769 214 175 224 396 218 893 222 941 Total 761 919 798 939 782 243 783 853 800 897 Cape Town decentralized Grade A+ 113 480 113 480 102 880 113 480 130 480 Grade A 1 099 086 1 099 086 1 099 286 1 096 986 1 097 545 Grade B 320 206 320 206 320 206 322 574 322 774 Total 1 532 772 1 532 772 1 522 372 1 533 040 1 550 799 Source of data: Sapoa
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Rode’s Report 2018:3 62 Office demand and vacancies
Table 6.3 Sapoa new office developments
Size (m²) % of new SA developments
Johannesburg Sandton 173 247 33,8% Rosebank 85 811 16,7% Waterfall 56 391 11,0% Midrand 25 300 4,9% Bryanston/Epsom Downs 15 696 3,1% Fourways 7 100 1,4% Illovo 6 000 1,2% Houghton/Killarney 3 568 0,7% Bedfordview 3 550 0,7% Total 376 663 73,5% Pretoria Menlyn/Faerie Glen/Ashlea 20 130 3,9% Gardens Centurion CBD 18 000 3,5% Lynnwood/Hazelwood/Menlo 1 066 0,2% Park/Persequor Park Total 39 196 7,6% Durban Umhlanga/La Lucia 39 175 7,6% Westville 4 000 0,8% Total 43 175 8,4% Cape Town Cape Town CBD 38 340 7,5% Claremont 9 500 1,9% Bellville 5 600 1,1% Total 53 440 10,4% Total South Africa 512 474 Source of data: Sapoa
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Rode’s Report 2018:3 63 Industrial rentals and vacancies
Chapter 7: Industrial rentals and vacancies
Industrial rentals shine Kobus Lamprecht
Industrial property continues to be the shining light in the property market due to its superior rental growth and lower vacancy rates. However, Rode’s latest data indicate the market is starting to cool somewhat.
Nominal industrial market rentals in South Africa grew by about 6% year on year in the third quarter of 2018, slowing from the 7,5% growth recorded in the second quarter. This implies that rentals continued to increase in real terms, after adjusting for building-cost inflation (BER BCI) of about 4%.
Below we first discuss the major factors impacting the industrial market, before delving deeper into the recent rental performance of industrial property.
Drivers of the industrial market
Changes in rental and vacancy rates are strongly linked to the performance of the manufacturing and retail sectors.
The manufacturing sector underpins the demand for industrial space for manufacturing production purposes, whereas the retail sector underpins the demand for warehouse space and manu-facturing.
Manufacturing production increased by 1% in the first seven months of 2018 compared to the first seven months of 2017 ̶ an improvement from the 1% decrease recorded in 2017. However, the latest Absa Purchasing Managers’ Index (PMI) reached only 43,2 index points in September due to depressed manufacturing activity and weak sales orders. This implies business conditions will probably get tougher before getting better. The PMI has remained stuck in
contraction territory for most of 2018, with the third quarter especially poor, as shown in the chart.
The retail sector performed better than the manufacturing sector over the first seven months of the year, growing by 2,9% in real terms. However, monthly sales have been weak the last few months, with July sales only managing to grow 1,3% on a year earlier. This slow growth was not surprising as consumers are buckling under financial pressure, and the situation is not likely to change soon. This should be of concern to landlords of retail property, especially considering the current oversupply of space.
Rental performance
Industrial property continued to perform well in the third quarter of 2018, with na-tional nominal market rentals growing by 6%, outpacing building-cost inflation of about 4%. However, growth slowed in each of the major industrial regions, while vacancy rates also increased.
National rental growth in the third quarter was largely driven by the Cape Peninsula (see first chart), where nominal market rentals for prime industrial space of
30
35
40
45
50
55
60
65
07 08 09 10 11 12 13 14 15 16 17 18
Expansion
Contraction
Inde
x
Source of data: BER; ABSA
ABSA Purchasing Managers' Index(Seasonally adjusted)
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Rode’s Report 2018:3 64 Industrial rentals and vacancies
500 m² grew by an incredible 15% year on year. This sharp growth is in line with Rode’s vacancy factor data, which indicates the region has the least amount of vacant space in the country (less than 10%).
Rentals in the Central Witwatersrand, Durban and East Rand grew by 5%, 4% and 3% respectively. Rentals in the West Rand declined by 3%. This implies that rentals managed to grow in real terms (see second chart) only in the Cape Peninsula and the Central Witwatersrand.
As a yardstick of potential future growth in market rentals, we compare pioneer rentals with prevailing market rentals for prime industrial premises of 1 000 m² as in the third quarter of 2018 (see Table 7.1). Pioneer rental levels often represent leases signed on newly erected on-demand buildings, and these rentals then reflect today’s building costs, as developers naturally expect an immediate fair return on their development costs. Thus these rentals are an early indicator of the eventual level that market rentals will attain once demand catches up with supply in the wake of renewed economic growth.
Operating expenses are also an important factor to consider when assessing the profitability or viability of a property (see Table 7.5).
The remainder of this chapter includes: mean prime industrial rentals by
township, the standard deviations from these
mean rentals, indicative operating costs, and the predominant escalation rates.
This concludes our section on industrial rentals and vacancies. Note that our industrial tables follow.
100
50
40353025
20
15
10
594 96 98 00 02 04 06 08 10 12 14 16 18
Cape PeninsulaDurbanEast RandCentral Witwatersrand
Nominal prime industrial rentals500m² units
Smoothed
R/m
²(l
og s
cale
)
Source of data: Rode's Time Series
32
30
28
26
24
22
20
1894 96 98 00 02 04 06 08 10 12 14 16 18
Cape PeninsulaDurbanEast RandCentral Witwatersrand
Real prime industrial rentals (2005 rands)500m² units
Smoothed
R/m
²(l
og s
cale
)
Source of data: Rode's Time Series; BER BCI
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Rode’s Report 2018:3 65 Industrial rentals and vacancies
The reference to real means that nominal prices have been deflated (i.e. adjusted for inflation). In this chapter, industrial rentals are deflated by the Bureau for Economic Research’s Building Cost Index (BER BCI). By using building costs as a deflator, the reader can interpret the graphs from a developer’s point of view, i.e. they can serve as a proxy for the viability of new devel-opments over time, holding constant capitalization rates and operating expenses.
The industrial rental tables contain regression parameters to allow readers to interpolate rental rates for area sizes other than those given in the tables. These parameters are necessary because the relationship between rental rates and floor area is not linear. For more details on how to use these equations, refer to Annexure 3 on annexure page XII.
Readers are reminded that the vacancy figures in the graph above are not actual vacancy percentages, but rather graduations on a 1-9 vacancy scale. For more information, see the notes to the industrial tables on p.90. Furthermore, the vacancies are for all the unit sizes (250 m², 500 m², 1 000 m², 2 500 m² and 5 000 m²) combined, as surveyed by Rode. In reality, vacancies could differ across the different-sized units.
Table 7.1 Pioneer industrial rentals
Highest gross nominal market rental rate achieved (1 000 m² units) Quarter 2018:3
Rands per rentable m², gross leases (excl. VAT)
Pioneer Normal prime mean
Inferred growth potential (%)
Central Witwatersrand 92 43 114%West Rand 65 40 62%East Rand 70 46 51%Durban 75 57 32%Cape Peninsula 85 51 68%Bloemfontein 65 34 89%
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Tab
le 7
.2
Mea
n p
rim
e in
du
stri
al m
arke
t re
nta
ls a
s in
qu
arte
r 2
01
8:3
(R
/m²
p.m
.; g
ross
leas
e; e
xcl.
VA
T)
Are
a si
ze le
ased
in m
² V
acan
cy
ab
r²2
50
50
0
1.0
00
2
.50
0
5.0
00
72,6
7 71
,67
69,0
0 68
,00
67,3
3 3,
0 4,
432
-0,0
27
0,94
47
,20
44,7
1 42
,43
41,0
7 39
,57
2,6
4,15
9 -0
,057
0,
98
57,4
3 56
,67
55,4
2 51
,50
49,6
0 2,
4 4,
351
-0,0
52
0,95
50
,40
49,2
5 47
,40
46,4
0 46
,00
3,5
4,09
0 -0
,032
0,
95
57,0
0 55
,00
51,0
0 50
,19
49,2
5 3,
5 4,
309
-0,0
50
0,91
49
,83
48,8
8 47
,10
45,3
3 42
,50
2,2
4,20
5 -0
,052
0,
96
39,0
0 39
,33
37,5
0 36
,00
35,0
0 2,
0 3,
902
-0,0
40
0,93
42
,50
42,5
0 40
,67
39,5
0 36
,50
1,7
4,04
3 -0
,050
0,
90
38,6
7 36
,50
35,5
0 33
,20
29,0
0 3,
0 4,
155
-0,0
88
0,93
39
,00
35,7
5 33
,00
31,8
8 29
,00
2,8
4,15
8 -0
,092
0,
97
37,5
0 32
,50
29,2
5 28
,50
27,1
1 2,
6 4,
134
-0,1
01
0,89
35,3
3 32
,50
31,5
0 29
,08
29,0
0 2,
8 3,
913
-0,0
67
0,94
41
,67
40,6
7 38
,00
37,7
5 36
,00
2,5
3,99
2 -0
,048
0,
94
42,6
7 40
,33
39,0
0 38
,13
35,5
0 2,
0 4,
052
-0,0
55
0,96
35
,00
34,0
0 31
,00
30,0
0 27
,50
3,5
4,00
3 -0
,080
0,
97
40,6
7 39
,67
37,6
7 35
,38
33,3
3 2,
7 4,
090
-0,0
68
0,99
40
,00
35,0
0 35
,00
30,0
0 25
,00
2,5
4,49
4 -0
,144
0,
93
34,3
3 33
,33
31,7
5 30
,00
28,0
0 3,
0 3,
920
-0,0
68
0,98
31
,00
30,0
0 27
,50
27,0
0 27
,00
- 3,
696
-0,0
50
0,85
21
,67
20,0
0 18
,33
21,6
7 25
,00
5,0
2,69
9 0,
051
0,29
61
,40
60,6
0 58
,80
56,5
6 56
,40
2,7
4,29
4 -0
,032
0,
96
57,5
6 55
,89
54,8
9 53
,89
51,8
6 3,
4 4,
228
-0,0
32
0,97
49
,50
47,2
5 46
,75
45,4
0 44
,50
1,8
4,07
4 -0
,033
0,
96
Cen
tral
Wit
wat
ersr
and
Cam
brid
ge P
ark
W
ynbe
rg P
rope
r
Str
ijdom
Par
k
Kya
San
d
Cla
yvill
e/O
lifan
tsfo
ntei
n
Chl
oork
op
Am
alga
m
Cro
wn
Min
es
Indu
stria
Boo
ysen
s/Boo
ysen
s Res
erve
/ O
phirto
n Vill
age
Mai
n/Vill
age
Dee
p/N
ew
Cen
tre
Ben
rose
Ste
eled
ale/
Elec
tron
/Tul
isa
Park
Aer
oton
D
evla
nd/N
ance
field
Cle
vela
nd/H
erio
tdal
e
New
land
s/M
artind
ale
Kew
/Wyn
berg
Eas
t
Bra
mle
y Vie
w/L
omba
rdy
Wes
t
Mar
lbor
o
Hal
fway
Hou
se:
hi-t
ech
strip
H
alfw
ay H
ouse
: Ric
hard
s D
rive
Com
mer
cia
Kra
mer
ville
/Eas
tgat
e Ex
t12
& E
xt13
97
,50
85,0
0 78
,75
75,0
0 72
,50
2,3
5,05
1 -0
,093
0,
91
Rode’s Report 2018:3 66 Industrial rentals and vacancies
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Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
18
:3
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
br²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Linb
ro P
ark
66,3
8 65
,00
63,3
6 62
,44
61,5
0 3,
0 4,
331
-0,0
25
0,98
W
esco
Par
k/Ea
stga
te E
xt3,
Ext
11,
Ext6
, Ex
t8/M
albo
ro N
orth
(N
ew)
62
,25
61,2
5 56
,50
53,5
0 52
,50
1,7
4,48
3 -0
,063
0,
96
City
Dee
p
46,0
0 45
,50
42,5
0 41
,75
40,7
5 2,
7 4,
068
-0,0
43
0,93
N
orth
Rid
ing
61
,50
61,5
0 61
,50
59,4
0 57
,67
2,3
4,25
2 -0
,022
0,
82
Sam
rand
Cen
turion
65
,00
64,7
5 64
,75
64,5
8 68
,60
2,7
4,08
6 0,
014
0,42
Bar
bequ
e D
owns
66
,33
64,0
0 61
,40
60,6
0 60
,60
1,8
4,35
0 -0
,031
0,
86
Sel
by E
xt 1
2/13
/15/
19/2
0/24
/City
Wes
t
40,6
7 37
,33
33,6
7 33
,00
32,6
7 3,
0 4,
075
-0,0
73
0,86
Sel
by E
xt 5
/10/
14/1
8
40,0
0 35
,00
32,5
0 32
,50
32,5
0 -
3,97
8 -0
,063
0,
70
Sel
by E
xt 1
1
40,0
0 30
,00
25,0
0 25
,00
25,0
0 -
4,35
9 -0
,144
0,
71
Sel
by E
xt 3
/4/6
40
,00
30,0
0 25
,00
25,0
0 25
,00
- 4,
359
-0,1
44
0,71
D
enve
r (O
ld)
27
,50
27,5
0 27
,22
27,5
0 27
,50
2,5
3,31
1 0,
000
0,00
D
enve
r (N
ew)
43
,33
43,3
3 41
,67
41,6
7 41
,00
2,0
3,87
9 -0
,020
0,
86
Kya
lam
i Bus
ines
s Pa
rk
64,7
5 64
,00
60,8
6 60
,00
58,5
7 1,
8 4,
363
-0,0
35
0,95
Reu
ven
40
,00
40,0
0 35
,00
35,0
0 30
,00
2,5
4,22
5 -0
,093
0,
87
Sel
by (
Old
)/Sel
by E
xt2/
Park
Cen
tral
42
,50
37,5
0 33
,89
32,5
0 25
,00
2,7
4,61
9 -0
,157
0,
92
Rob
erts
ham
41
,50
41,5
0 39
,00
35,0
0 33
,50
1,5
4,19
3 -0
,080
0,
94
Ford
sbur
g/M
ayfa
ir
45,0
0 45
,00
40,0
0 35
,00
35,0
0 -
4,38
2 -0
,100
0,
92
Wat
erfa
ll 73
,50
73,5
0 71
,00
68,5
0 68
,50
- 4,
458
-0,0
28
0,92
C
entr
al W
itw
ater
sran
d
47
,61
4
5,3
7
42
,95
4
1,6
1
40
,24
2
,6
Wes
t R
and
Le
a G
len
41,2
5 41
,25
40,2
5 40
,10
39,5
0 2,
5 3,
806
-0,0
15
0,91
H
oney
dew
X19
/20/
21/2
2 57
,50
56,2
5 56
,25
53,5
0 52
,60
2,8
4,22
3 -0
,030
0,
94
Sto
rmill
44
,64
43,8
6 42
,80
44,8
3 44
,43
2,2
3,77
0 0,
002
0,02
Cha
mdo
r 40
,00
35,0
0 32
,50
29,3
3 27
,50
- 4,
333
-0,1
21
0,98
Rode’s Report 2018:3 67 Industrial rentals and vacancies
![Page 87: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/87.jpg)
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
18
:3
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
br²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Fact
oria
50
,00
47,5
0 46
,25
41,6
7 35
,00
- 4,
559
-0,1
12
0,90
Kru
gers
dorp
: D
elpo
rton
75
,00
70,0
0 60
,00
60,0
0 55
,00
- 4,
856
-0,1
01
0,91
Ran
dfon
tein
: Aur
eus
34,3
0 30
,00
27,5
0 26
,50
23,0
0 2,
0 4,
174
-0,1
20
0,95
Bol
toni
a 35
,00
35,0
0 30
,00
25,0
0 25
,00
- 4,
327
-0,1
34
0,92
Roo
depo
ort:
Tec
hnik
on/M
anuf
acta
43
,50
41,0
0 37
,50
33,7
5 30
,00
- 4,
470
-0,1
23
0,99
In
dust
ria
Nor
th
40,0
0 37
,50
30,0
0 30
,00
25,0
0 3,
0 4,
525
-0,1
51
0,92
Rob
ertv
ille
43,0
0 41
,83
40,6
0 39
,67
39,6
7 2,
7 3,
909
-0,0
28
0,93
La
serp
ark
60,0
0 58
,00
57,0
0 51
,50
50,8
3 2,
7 4,
433
-0,0
60
0,95
W
est
Ran
d
44
,47
4
2,4
7
40
,06
3
7,8
0
35
,68
2
,5
East
Ran
d
Elan
dsfo
ntei
n 44
,11
43,7
3 43
,33
42,5
0 39
,70
3,1
3,97
3 -0
,032
0,
80
Tunn
ey/G
reen
hills
57
,11
56,1
0 55
,60
53,0
5 52
,50
2,2
4,21
3 -0
,030
0,
96
Hen
ville
49
,60
49,0
0 48
,40
48,0
0 48
,00
2,2
3,96
2 -0
,011
0,
91
Mea
dow
broo
k/W
ilbar
t 54
,88
54,4
0 53
,29
52,7
9 50
,86
2,1
4,14
1 -0
,024
0,
93
Sun
nyro
ck
56,3
0 55
,18
54,0
0 51
,00
50,5
7 2,
3 4,
249
-0,0
39
0,97
Rus
tivi
a/Act
ivia
Par
k 45
,44
45,0
0 44
,44
43,9
5 42
,86
2,1
3,92
1 -0
,018
0,
96
East
leig
h 49
,13
48,7
1 46
,29
43,6
1 40
,14
2,1
4,29
2 -0
,068
0,
94
Seb
enza
Ext
14
44,3
3 43
,44
43,6
7 43
,05
42,0
0 2,
4 3,
876
-0,0
15
0,86
Spa
rtan
Ext
16
(Seb
enza
Lin
k) +
Ex
t 1/
3/7
47,7
0 46
,64
46,1
8 45
,85
45,1
1 2,
4 3,
952
-0,0
17
0,95
Isan
do
48,5
7 46
,88
46,2
5 45
,06
44,4
3 2,
8 4,
033
-0,0
29
0,97
Is
ando
3
50,3
8 49
,75
48,5
0 46
,61
46,0
0 3,
1 4,
104
-0,0
33
0,98
Je
t Pa
rk
53,4
2 52
,65
52,3
0 52
,04
50,2
5 3,
0 4,
076
-0,0
18
0,86
Alrod
e &
Xs
38,5
0 37
,50
35,5
0 36
,00
35,3
3 2,
2 3,
790
-0,0
27
0,77
Alrod
e Sou
th
41,4
0 40
,20
37,2
0 35
,75
33,6
0 2,
6 4,
116
-0,0
70
0,98
Rode’s Report 2018:3 68 Industrial rentals and vacancies
![Page 88: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/88.jpg)
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
18
:3
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
br²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Alb
erto
n 41
,67
41,3
3 38
,67
34,8
0 34
,33
2,3
4,15
8 -0
,074
0,
94
Aer
opor
t/Spa
rtan
Ext
2
55,7
1 55
,86
53,0
0 52
,14
52,4
3 2,
3 4,
160
-0,0
25
0,80
D
elvi
lle
31,5
0 31
,50
30,0
0 30
,00
27,6
7 2,
3 3,
686
-0,0
40
0,83
Roo
deko
p 35
,50
35,0
0 33
,83
32,3
3 31
,17
2,7
3,82
6 -0
,045
0,
98
Wad
evill
e: I
ndus
tria
l zon
ing
38,0
0 37
,67
37,0
0 36
,10
35,2
5 2,
5 3,
783
-0,0
25
0,98
Rou
te 2
4/M
eado
wda
le
51,7
0 51
,44
51,3
0 49
,65
49,3
8 3,
3 4,
045
-0,0
17
0,90
G
erm
isto
n S/I
ndus
trie
s E
36,5
0 35
,00
31,0
0 30
,67
29,2
5 2,
0 4,
000
-0,0
75
0,91
D
rieh
oek/
Indu
stries
W
41,6
7 40
,00
38,6
7 37
,38
37,3
3 2,
0 3,
927
-0,0
38
0,93
Kni
ghts
36
,25
35,0
0 33
,50
31,4
0 28
,50
2,3
4,03
4 -0
,078
0,
96
Spa
rtan
Pro
per
47,2
5 46
,88
46,3
8 45
,35
43,6
3 2,
1 4,
004
-0,0
25
0,91
Fo
unde
rs V
iew
60
,71
60,0
0 58
,88
55,8
8 54
,17
1,6
4,33
6 -0
,040
0,
96
Long
mea
dow
66
,22
66,3
5 66
,11
65,4
6 64
,91
1,9
4,23
7 -0
,007
0,
86
Pom
ona/
Kem
pton
par
k 57
,29
57,0
0 56
,13
56,1
3 55
,89
3,1
4,09
3 -0
,008
0,
86
Gos
fort
h Pa
rk
63,6
7 63
,67
61,1
7 60
,83
58,0
0 1,
6 4,
330
-0,0
30
0,89
Ea
st R
and
4
8,2
5
47
,63
4
6,3
7
45
,18
4
3,9
2
2,4
Fa
r Ea
st R
and
Bok
sbur
g N
orth
& E
ast
44,2
9 43
,29
41,8
8 39
,83
39,0
0 2,
8 4,
040
-0,0
45
0,99
Ben
oni S
outh
37
,50
37,5
0 36
,40
35,6
0 33
,67
2,7
3,83
3 -0
,035
0,
90
New
Era
/Vul
cani
a 29
,50
29,3
3 29
,33
28,3
3 25
,00
2,7
3,67
9 -0
,048
0,
69
Nuf
field
31
,67
31,6
7 30
,00
29,6
0 26
,00
2,3
3,81
5 -0
,061
0,
82
Fulc
rum
29
,00
29,0
0 26
,50
25,0
0 25
,00
2,0
3,70
1 -0
,059
0,
90
Ape
x 40
,25
39,7
5 38
,50
37,0
0 35
,00
2,5
3,96
3 -0
,046
0,
96
Labo
re
32,5
0 32
,50
25,0
0 25
,00
22,5
0 2,
0 4,
212
-0,1
30
0,86
M
oreh
ill E
xt 8
Ben
oni
42,7
5 41
,50
37,5
0 37
,33
36,0
0 2,
8 4,
071
-0,0
58
0,89
Fa
r Ea
st R
and
3
5,9
3
35
,57
3
3,1
4
32
,21
3
0,2
7
2,5
Rode’s Report 2018:3 69 Industrial rentals and vacancies
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Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
18
:3
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
br²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Pre
tori
a Cha
rlot
te M
axek
e 50
,00
42,5
0 35
,00
30,5
0 27
,50
5,5
4,98
9 -0
,200
0,
98
Pret
oria
Ind
ustr
ial T
owns
hip
42,5
0 40
,00
32,5
0 27
,50
25,0
0 3,
5 4,
814
-0,1
89
0,98
Koe
does
poor
t 50
,00
40,0
0 35
,00
30,0
0 25
,00
2,0
5,08
9 -0
,219
0,
99
Wal
tloo
/Des
patc
h 51
,67
47,5
0 47
,50
42,5
0 40
,00
3,5
4,39
8 -0
,082
0,
96
Silv
erto
n/Silv
erto
ndal
e 53
,33
50,0
0 46
,67
43,3
3 40
,00
4,0
4,49
8 -0
,094
1,
00
Sam
cor
Park
52
,50
50,0
0 50
,00
47,5
0 42
,00
3,0
4,33
5 -0
,066
0,
85
Sun
derlan
d Rid
ge
52,5
0 49
,00
47,5
0 45
,00
42,5
0 3,
5 4,
320
-0,0
67
0,99
H
erm
anst
ad
37,5
0 37
,50
30,0
0 27
,50
27,5
0 3,
0 4,
311
-0,1
22
0,87
Kirkn
ey
30,0
0 30
,00
27,0
0 25
,00
22,0
0 3,
0 4,
022
-0,1
06
0,94
H
enno
pspa
rk X
15 &
X7
69,0
0 66
,50
57,5
0 55
,00
50,0
0 2,
0 4,
844
-0,1
09
0,96
G
atew
ay
57,6
7 56
,00
54,3
3 52
,67
50,0
0 1,
0 4,
309
-0,0
46
0,98
Ly
ttle
ton
Man
or X
4/X6
52,5
0 50
,00
45,0
0 35
,00
35,0
0 1,
0 4,
845
-0,1
55
0,94
Pr
etor
ia N
orth
45
,00
35,0
0 30
,00
25,0
0 25
,00
3,5
4,82
6 -0
,198
0,
92
Silv
erto
ndal
e X1
50,0
0 48
,33
45,0
0 42
,50
40,0
0 2,
5 4,
336
-0,0
76
0,99
Kle
rkso
ord
35,0
0 33
,00
30,0
0 25
,00
20,0
0 3,
0 4,
625
-0,1
85
0,95
Ros
slyn
35
,00
35,0
0 35
,00
30,0
0 30
,00
2,0
3,93
1 -0
,062
0,
79
Rou
te 2
1 Cor
pora
te P
ark
--
--
- -
- -
-Cen
turion
65
,00
65,0
0 60
,00
55,0
0 50
,00
2,0
4,71
3 -0
,091
0,
95
Iren
e (e
xcl.
Rou
te 2
1 Cor
p. P
ark)
80
,00
80,0
0 80
,00
80,0
0 80
,00
- 4,
382
0,00
0 -
Pre
tori
a 4
7,7
6
44
,40
4
0,5
0
36
,50
3
3,8
4
2,9
P
olok
wan
e Le
bow
akgo
mo
--
--
- -
- -
-Sup
erbi
a 50
,00
37,5
0 32
,50
30,0
0 30
,00
2,5
4,69
4 -0
,162
0,
82
Indu
stria
50,0
0 41
,50
35,0
0 32
,50
- 1,
5 -
- -
Rode’s Report 2018:3 70 Industrial rentals and vacancies
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Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
18
:3
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
br²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Ladi
ne
50,0
0 42
,50
33,5
0 30
,00
30,0
0 2,
5 4,
847
-0,1
79
0,90
Fu
tura
-
--
--
--
--
Labo
ria
- 35
,00
32,0
0 -
- 3,
0 -
- -
Mag
na V
ia
55,0
0 54
,67
47,5
0 45
,00
- 2,
0 -
- -
Ses
hego
-
--
--
--
--
Pol
okw
ane
51
,25
4
2,2
3
36
,10
3
4,3
8
30
,00
2
,1
Nel
spru
it
Nel
spru
it E
ast
45,0
0 40
,00
35,0
0 35
,00
- 3,
0 -
- -
Nel
spru
it W
est
47,5
0 45
,00
42,5
0 42
,50
- 3,
0 -
- -
Roc
ky's
Drift
40
,00
35,0
0 36
,50
32,5
0 -
4,0
- -
- Riv
ersi
de P
ark
67,5
0 57
,50
57,5
0 55
,00
- 3,
0 -
- -
Nel
spru
it
50
,00
4
4,3
8
42
,88
4
1,2
5
- 3
,3
Du
rban
Spr
ingf
ield
Par
k 63
,17
62,3
3 61
,67
60,0
0 58
,33
2,3
4,29
5 -0
,026
0,
97
May
ville
52
,50
50,0
0 50
,00
47,5
0 43
,50
2,0
4,27
8 -0
,056
0,
90
Phoe
nix
57,5
0 57
,50
54,0
0 52
,67
49,3
3 1,
7 4,
353
-0,0
52
0,93
N
orth
Coa
st R
d/Briar
dene
65
,00
63,3
3 63
,33
61,6
7 60
,00
2,7
4,31
0 -0
,025
0,
95
Briar
dene
Ind
ustr
ial P
ark
72,5
0 66
,67
65,0
0 61
,67
61,0
0 2,
3 4,
566
-0,0
55
0,92
U
mge
ni R
d/Sta
mfo
rd H
ill
62,5
0 58
,33
58,2
5 56
,00
55,0
0 4,
3 4,
331
-0,0
39
0,90
U
mbi
lo/S
ydne
y Rd/
Gal
e St
55,0
0 55
,00
57,0
0 56
,67
60,0
0 4,
5 3,
852
0,02
7 0,
80
Jaco
bs
56,6
7 56
,67
55,0
0 55
,00
56,2
5 3,
0 4,
064
-0,0
06
0,20
M
oben
i 57
,50
57,5
0 56
,25
56,2
5 55
,00
2,3
4,13
5 -0
,014
0,
88
Pros
pect
on
65,0
0 61
,67
58,2
5 58
,25
57,2
5 4,
0 4,
376
-0,0
40
0,84
It
hala
Ind
ustr
ial E
stat
e 56
,50
56,5
0 55
,00
52,5
0 52
,50
3,0
4,20
5 -0
,029
0,
91
Pine
tow
n Cen
tral
58
,25
57,0
0 56
,67
53,3
3 50
,00
3,8
4,35
2 -0
,049
0,
91
New
Ger
man
y 59
,33
59,3
3 56
,67
56,6
7 53
,33
3,3
4,28
0 -0
,034
0,
86
Rode’s Report 2018:3 71 Industrial rentals and vacancies
![Page 91: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/91.jpg)
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
18
:3
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
br²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Kw
a D
ebek
a In
dust
rial
Par
k -
--
--
--
--
Isip
ingo
55
,00
55,0
0 55
,00
55,0
0 55
,00
2,0
4,00
7 0,
000
- Ros
sbur
gh/S
outh
Coa
st R
d 55
,00
55,0
0 55
,00
55,0
0 52
,50
1,5
4,08
3 -0
,012
0,
50
Edw
in S
wal
es D
rive
65
,00
62,5
0 62
,50
57,5
0 55
,00
1,5
4,48
9 -0
,055
0,
94
Gle
n Ani
l 67
,40
67,4
0 66
,40
65,0
0 63
,40
1,8
4,33
5 -0
,021
0,
93
Brick
field
Rd
62,5
0 62
,50
62,5
0 57
,50
55,0
0 2,
0 4,
411
-0,0
45
0,83
Ver
ulam
45
,00
45,0
0 45
,00
38,0
0 38
,00
2,0
4,21
8 -0
,069
0,
79
Can
elan
ds
45,0
0 45
,00
45,0
0 45
,00
45,0
0 1,
0 3,
807
0,00
0 0,
00
Tong
aat
30,0
0 30
,00
30,0
0 30
,00
30,0
0 2,
0 3,
401
0,00
0 -
New
Wes
tmea
d/M
ahog
any
67
,67
66,0
0 65
,00
63,3
3 61
,25
2,3
4,39
0 -0
,032
0,
98
Wes
tmea
d 66
,00
64,3
3 64
,33
63,3
3 62
,50
3,5
4,27
5 -0
,016
0,
93
Mar
iann
Par
k/Sou
thm
ead
57,5
0 53
,00
50,0
0 49
,00
48,0
0 2,
3 4,
339
-0,0
57
0,89
M
axm
ead
63,3
3 60
,67
60,6
7 61
,67
59,3
3 2,
3 4,
214
-0,0
14
0,52
Rin
groa
d In
dust
rial
Par
k 65
,00
65,0
0 65
,00
62,0
0 -
2,0
- -
- Avo
ca/R
ed H
ill/N
orth
gate
65
,00
63,3
3 63
,33
61,6
7 58
,33
2,7
4,35
6 -0
,032
0,
88
Falc
on P
ark
55,0
0 55
,00
55,0
0 50
,00
50,0
0 2,
0 4,
239
-0,0
39
0,79
Riv
erho
rse
Val
ley
Bus
ines
s Es
tate
75
,00
73,3
3 73
,33
71,6
7 70
,00
1,7
4,43
4 -0
,021
0,
95
Mou
nt E
dgec
ombe
73
,75
72,5
0 72
,00
67,5
0 64
,33
3,3
4,56
8 -0
,046
0,
92
Um
bogi
ntw
ini/
Sou
thga
te
60,0
0 60
,00
60,0
0 55
,00
55,0
0 2,
0 4,
306
-0,0
35
0,79
Sou
thga
te I
ndus
tria
l Par
k 61
,00
61,0
0 60
,00
59,0
0 57
,50
2,0
4,22
9 -0
,020
0,
93
Hib
iscu
s In
dust
rial
Par
k -
--
--
--
--
Um
geni
Par
k 67
,50
67,5
0 67
,50
66,0
0 63
,50
2,3
4,33
0 -0
,019
0,
76
Ham
mer
sdal
e 32
,00
32,0
0 33
,00
33,0
0 33
,50
3,5
3,37
6 0,
016
0,87
Cat
o Rid
ge
34,0
0 34
,00
34,0
0 34
,00
33,6
7 1,
7 3,
542
-0,0
03
0,50
Bal
lito
65
,00
60,0
0 50
,00
50,0
0 50
,00
4,0
4,64
1 -0
,091
0,
77
Dub
e Tr
adep
ort
75,0
0 70
,00
70,0
0 70
,00
65,0
0 3,
0 4,
507
-0,0
37
0,77
D
urb
an
58
,54
5
7,4
8
56
,90
5
5,1
0
53
,60
2
,5
Rode’s Report 2018:3 72 Industrial rentals and vacancies
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Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
18
:3
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
br²
25
0
50
0
1.0
00
2
.50
0
5.0
00
La
dys
mit
h
Ezak
heni
/Pie
ters
-
--
--
- -
- -
Dan
skra
al
20,0
0 17
,00
12,0
0 10
,00
8,00
3,
0 4,
706
-0,3
10
0,98
N
ambi
ti
20,0
0 17
,00
12,0
0 10
,00
8,00
3,
0 4,
706
-0,3
10
0,98
Col
enso
-
--
--
- -
- -
Lad
ysm
ith
2
0,0
0
17
,00
1
2,0
0
10
,00
8
,00
3
,0
Cap
e P
enin
sula
Vik
ing
Plac
e 64
,25
62,5
0 58
,00
55,0
0 56
,50
1,6
4,43
4 -0
,051
0,
84
Glo
sder
ry
60,0
0 60
,00
60,0
0 -
- 2,
0 -
- -
Paar
den
Eila
nd/M
etro
65
,80
63,1
7 60
,60
60,6
0 57
,67
1,4
4,39
6 -0
,040
0,
92
Mon
tagu
e G
arde
ns
60,0
0 57
,88
55,6
3 53
,86
54,7
1 2,
4 4,
267
-0,0
34
0,84
M
arco
ni B
eam
60
,86
58,5
7 57
,00
50,6
7 50
,50
1,5
4,49
6 -0
,069
0,
94
Kill
arne
y G
arde
ns
52,0
0 50
,14
46,1
7 44
,00
42,5
0 2,
7 4,
337
-0,0
70
0,98
Rac
ing
Park
45
,00
43,1
7 41
,29
37,6
7 35
,00
3,6
4,28
6 -0
,084
0,
98
Atlan
tis
--
- 40
,00
--
--
-W
oods
tock
/Sal
t Riv
er/O
bser
vato
ry
- 80
,00
70,0
0 -
- 2,
0 -
- -
Ath
lone
1 &
2
45,0
0 45
,00
40,0
0 35
,00
35,0
0 -
4,38
2 -0
,100
0,
92
Lans
dow
ne N
eris
sa
50,0
0 47
,50
47,5
0 45
,00
42,5
0 2,
0 4,
188
-0,0
50
0,94
San
d In
dust
ria
40,0
0 40
,00
35,0
0 30
,00
30,0
0 1,
0 4,
348
-0,1
15
0,92
O
tter
y H
illst
ar
61,0
0 57
,67
57,6
7 55
,00
- 2,
0 -
- -
Ott
ery
Sun
set
60,0
0 55
,00
55,0
0 55
,00
- 2,
0 -
- -
Die
p Riv
er
67,5
0 62
,50
60,0
0 -
- 1,
5 -
- -
Elfin
dale
-
--
--
- -
- -
Mon
woo
d/Ph
ilipp
i 45
,00
45,0
0 37
,50
37,5
0 35
,00
2,0
4,30
7 -0
,089
0,
86
Ret
reat
/Ste
enbe
rg
- 55
,00
- -
- 4,
0 -
- -
Cap
rico
rn P
ark
65,0
0 65
,00
65,0
0 45
,00
- 3,
0 -
- -
Mai
tlan
d 56
,67
54,8
0 53
,50
50,0
0 49
,00
2,0
4,31
9 -0
,051
0,
98
Nda
beni
62
,83
60,5
0 57
,67
55,1
4 50
,25
1,4
4,54
1 -0
,071
0,
96
Rode’s Report 2018:3 73 Industrial rentals and vacancies
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Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
18
:3
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
br²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Ep
ping
1 &
2
54,7
9 53
,44
50,4
3 48
,71
48,6
0 2,
5 4,
239
-0,0
44
0,93
W
P Pa
rk
60,1
7 60
,00
58,4
0 54
,00
53,0
0 1,
3 4,
379
-0,0
48
0,93
El
sies
Riv
er (
excl
. Cen
tral
Par
k)
41,7
5 39
,00
37,7
5 35
,25
33,6
7 2,
3 4,
110
-0,0
70
0,99
Pa
row
Bea
conv
ale
52,3
3 51
,83
50,0
0 43
,00
39,6
7 2,
5 4,
543
-0,0
99
0,92
Ty
gerb
erg
Bus
ines
s Pa
rk
58,4
0 53
,50
51,0
0 49
,00
48,2
9 1,
7 4,
377
-0,0
61
0,91
Pa
row
Ind
ustr
ia
51,1
1 50
,33
48,0
0 42
,43
40,0
0 2,
4 4,
447
-0,0
88
0,95
Pa
row
Eas
t 55
,83
52,0
0 48
,00
42,3
3 40
,00
1,5
4,66
1 -0
,115
1,
00
Bel
lvill
e O
akda
le
45,0
0 40
,00
35,0
0 32
,50
30,0
0 2,
0 4,
518
-0,1
33
0,97
Bel
lvill
e Stikl
and/
Kay
mor
54
,00
50,5
0 49
,00
41,6
7 40
,33
1,4
4,56
7 -0
,103
0,
96
Bel
lvill
e Tr
iang
le
47,5
0 45
,00
42,7
5 40
,00
39,0
0 1,
6 4,
226
-0,0
67
0,99
Bel
lvill
e Sou
th/S
acks
Circl
e 45
,33
44,8
0 42
,50
40,5
6 37
,88
2,7
4,16
4 -0
,060
0,
96
Kra
aifo
ntei
n43
,00
40,4
0 39
,83
38,6
7 37
,00
2,0
3,99
7 -0
,045
0,95
Bra
cken
fell
Indu
stria
54,2
9 51
,29
49,0
0 45
,00
43,0
0 2,
3 4,
429
-0,0
79
1,00
Ev
erite
Bra
cken
fell
59,0
0 54
,00
46,6
7 44
,67
44,0
0 2,
0 4,
606
-0,1
01
0,89
Kui
ls R
iver
49
,13
45,5
6 41
,88
39,7
1 39
,40
3,0
4,29
0 -0
,076
0,
93
Bla
ckhe
ath
48,2
9 45
,00
42,1
3 38
,83
37,6
0 2,
5 4,
338
-0,0
85
0,99
Sax
enbu
rg I
ndus
tria
l Par
k 52
,00
49,0
0 48
,83
47,0
0 43
,75
2,5
4,22
7 -0
,051
0,
92
Oka
vang
o 55
,00
50,1
3 47
,14
43,6
7 41
,60
2,0
4,49
5 -0
,091
0,
99
Bra
cken
gate
73
,75
70,0
0 69
,00
68,0
0 70
,75
1,3
4,35
3 -0
,014
0,
32
Paar
l 45
,00
43,5
0 40
,00
37,5
0 35
,00
1,0
4,28
9 -0
,086
0,
99
Wel
lingt
on
45,0
0 40
,00
38,5
0 32
,50
30,0
0 1,
0 4,
547
-0,1
35
0,98
Con
term
ansk
loof
65
,00
65,0
0 62
,50
62,5
0 62
,50
2,0
4,25
8 -0
,015
0,
73
Riv
erga
te66
,67
65,0
0 62
,50
62,5
0 60
,00
2,0
4,37
5 -0
,032
0,93
Airpo
rt I
nd (
nort
h of
sew
erag
e fa
rm)
60,0
0 58
,00
54,7
5 53
,25
50,6
7 1,
6 4,
399
-0,0
55
0,98
Airpo
rt I
nd (
wes
t of
Bor
cher
ds Q
uarr
y)
64,5
0 61
,25
59,5
0 57
,50
57,0
0 1,
8 4,
377
-0,0
41
0,94
Airpo
rt I
nd (
east
of
Bor
cher
ds Q
uarr
y)
69,5
0 68
,50
69,2
5 65
,25
64,0
0 1,
4 4,
409
-0,0
29
0,84
Rode’s Report 2018:3 74 Industrial rentals and vacancies
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Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
18
:3
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
br²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Dur
banv
ille
Indu
strial
Par
k 55
,00
47,0
0 47
,00
--
1,0
--
-N
orth
gate
Ind
ustr
ial P
ark
- -
- -
- -
- -
- C
ape
Pen
insu
la
55
,46
5
3,1
4
50
,59
4
6,9
8
45
,33
2
,1
Hel
der
ber
g
The
Inte
rcha
nge
65,0
0 55
,00
50,0
0 -
- -
- -
- H
elde
rber
g In
dust
rial
Par
k 45
,00
40,0
0 38
,00
- -
- -
- -
Gan
ts
50,0
0 48
,00
45,0
0 -
- -
- -
- H
alf
Way
50
,00
48,0
0 45
,00
- -
- -
- -
Som
erse
t Bus
ines
s Pa
rk
55,0
0 48
,00
48,0
0 -
- -
- -
- G
eorg
es P
ark/
Onv
erw
acht
48
,00
45,0
0 40
,00
- -
- -
- -
Man
sfie
ld
40,0
0 38
,00
35,0
0 -
- -
- -
- Fi
rgro
ve
- -
- -
- -
- -
- Str
and
Hal
t -
- -
- -
- -
- -
Bro
adla
nds
-
- -
- -
- -
- -
Hel
der
ber
g
- -
- -
- -
Por
t El
izab
eth
D
eal P
arty
40
,83
35,0
0 33
,13
33,1
3 31
,88
3,3
4,04
1 -0
,071
0,
76
Nor
th E
nd
39,3
8 38
,13
34,3
8 34
,38
33,7
5 4,
0 3,
955
-0,0
53
0,84
Kor
sten
/Nea
ve/S
idw
ell/
Syd
enha
m
32,5
0 33
,75
35,0
0 35
,00
34,5
0 3,
3 3,
390
0,02
0 0,
59
Sou
th E
nd W
alm
er
53,3
3 50
,00
42,5
0 35
,00
- 2,
0 -
- -
Uiten
hage
: Vol
ksw
agen
are
a/N
MBLP
29
,17
28,7
5 28
,75
25,0
0 22
,50
5,8
3,90
0 -0
,088
0,
86
Uiten
hage
: H
ella
/Kru
isrivi
er
24,1
7 23
,17
23,6
3 21
,88
21,8
8 6,
6 3,
372
-0,0
34
0,83
Str
uand
ale
--
34,1
7 33
,13
33,1
3 2,
8-
- -
Mar
kman
Tow
nshi
p -
- 25
,00
25,0
0 25
,00
5,0
--
-Pe
rsev
eran
ce
33,3
3 32
,50
31,2
5 31
,25
31,2
5 3,
9 3,
615
-0,0
22
0,77
W
alm
er
53,7
5 47
,50
42,5
0 -
- 2,
3 -
- -
Rode’s Report 2018:3 75 Industrial rentals and vacancies
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Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
18
:3
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
br²
25
0
50
0
1.0
00
2
.50
0
5.0
00
G
reen
bush
es
46,2
5 45
,83
41,3
8 40
,88
40,8
8 2,
8 4,
090
-0,0
47
0,80
Fa
irvi
ew
63,1
3 63
,13
57,5
0 55
,83
- 3,
1 -
- -
Por
t El
izab
eth
4
1,5
8
39
,78
3
5,7
6
33
,68
-
3,7
Ea
st L
ond
on
Arc
adia
40
,67
36,6
7 29
,33
26,0
0 25
,00
2,5
4,64
0 -0
,173
0,
95
Gat
ely/
Woo
dbro
ok
40,0
0 35
,00
33,3
3 31
,00
30,0
0 3,
0 4,
154
-0,0
91
0,93
W
ilson
ia
32,5
0 30
,00
27,2
5 26
,67
21,0
0 2,
5 4,
208
-0,1
29
0,89
Bra
elyn
40
,00
35,0
0 33
,50
24,5
0 20
,00
3,0
5,00
7 -0
,231
0,
96
Nor
then
d
40,0
0 35
,00
33,5
0 30
,00
20,0
0 3,
0 4,
845
-0,2
02
0,85
Chi
selh
urst
41
,67
35,0
0 30
,00
30,0
0 25
,00
1,7
4,52
7 -0
,152
0,
92
Mei
sies
Hal
t 47
,50
40,0
0 35
,00
35,0
0 30
,00
- 4,
566
-0,1
36
0,91
Bea
cons
Bay
Ind
ustr
ial
42,5
0 40
,00
32,5
0 -
- 1,
0 -
- -
IDZ
--
- 32
,00
30,0
0 -
--
-W
esba
nk I
ndus
tria
l Are
a 27
,50
27,5
0 25
,00
20,0
0 -
5,0
- -
- Ea
st L
ond
on
39
,15
3
4,9
1
31
,05
2
8,3
5
25
,13
2
,7
Blo
emfo
nte
in
Hilt
on
46,0
0 44
,67
37,6
7 31
,50
25,0
0 3,
0 5,
034
-0,2
07
0,96
Ea
st E
nd
46,0
0 44
,67
37,6
7 31
,50
24,5
0 3,
5 5,
067
-0,2
12
0,95
H
arve
y Roa
d 40
,33
34,3
3 28
,33
29,0
0 24
,50
4,0
4,48
3 -0
,151
0,
89
Old
Ind
ustr
ial
39,6
7 37
,33
35,3
3 26
,50
21,0
0 4,
5 4,
938
-0,2
15
0,92
H
amilt
on:
Mill
St
35,0
0 33
,00
30,0
0 27
,00
25,0
0 4,
5 4,
198
-0,1
15
1,00
H
amilt
on:
G L
ubbe
St
32,5
0 29
,33
27,0
0 25
,50
22,0
0 5,
5 4,
139
-0,1
20
0,97
Es
toire
47,0
0 46
,00
45,0
0 42
,50
41,5
0 3,
5 4,
096
-0,0
43
0,98
B
loem
fon
tein
4
0,9
3
38
,48
3
4,4
3
30
,50
2
6,2
1
4,1
Rode’s Report 2018:3 76 Industrial rentals and vacancies
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Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
18
:3
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
br²
25
0
50
0
1.0
00
2
.50
0
5.0
00
G
eorg
e
Geo
rge
Cen
tral
35
,67
31,6
7 28
,50
24,0
0 21
,00
1,5
4,55
2 -0
,176
1,
00
Tam
sui I
ndus
tria
38
,33
34,8
3 31
,00
25,6
7 22
,67
1,0
4,65
2 -0
,179
1,
00
Paca
ltsd
orp
Indu
stria
33,3
3 31
,67
29,3
3 24
,00
20,6
7 1,
0 4,
453
-0,1
63
0,96
G
eorg
e 3
5,7
8
32
,72
2
9,6
1
24
,56
2
1,4
4
1,2
P
iete
rmar
itzb
urg
W
illow
ton
- 35
,00
35,0
0 35
,00
30,0
0 3,
0 -
- -
Mko
mde
ni
- 35
,00
30,0
0 30
,00
28,0
0 5,
0 -
- -
Cam
ps D
rift
-
55,0
0 45
,00
- -
5,0
- -
- Pi
eter
mar
itzb
urg
Cen
tral
70
,00
70,0
0 65
,00
60,0
0 -
5,0
- -
- P
iete
rmar
itzb
urg
-
48
,75
4
3,7
5
41
,67
2
9,0
0
4,5
W
ind
hoe
k N
orth
70
,00
70,0
0 70
,00
60,0
0 60
,00
2,0
4,62
4 -0
,062
0,
79
Lafr
enz
70,0
0 70
,00
60,0
0 60
,00
55,0
0 2,
0 4,
719
-0,0
83
0,88
Sou
th
90,0
0 90
,00
90,0
0 75
,00
70,0
0 1,
0 5,
057
-0,0
92
0,83
Pr
ospe
rita
70
,00
70,0
0 65
,00
65,0
0 60
,00
1,0
4,53
7 -0
,050
0,
88
Win
dh
oek
75
,00
7
5,0
0
71
,25
6
5,0
0
61
,25
1
,5
Rode’s Report 2018:3 77 Industrial rentals and vacancies
![Page 97: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/97.jpg)
Tab
le 7
.3
Sta
nd
ard
dev
iati
on f
rom
mea
n p
rim
e in
du
stri
al m
arke
t re
nta
ls
as in
20
18
:3
Are
a si
ze l
ease
d in
m²
Con
trib
uto
r co
des
2
50
5
00
1
.00
0
2.5
00
5
.00
0
Cen
tral
Wit
wat
ersr
and
Cam
brid
ge P
ark
5,56
4,
71
3,94
3,
69
2,05
AP,
AW
,BM
,FW
R,M
R
Wyn
berg
Pro
per
4,21
4,
68
4,24
4,
23
5,21
AP,
AV,A
W,B
M,B
S,F
WR,G
B,M
R,Q
U
Str
ijdom
Par
k 4,
10
3,73
5,
48
6,95
8,
40
AP,
AV,A
W,B
M,F
WR,G
B,Q
U,W
HF
Kya
San
d 5,
28
3,77
3,
56
2,24
7,
09
AP,
AV,B
M,F
WR,G
B,Q
U,R
EN,W
HF
Cla
yvill
e/O
lifan
tsfo
ntei
n 6,
28
6,12
6,
40
6,46
6,
83
AP,
AV,B
M,F
WR,G
B,G
I,M
R,Q
U
Chl
oork
op
3,66
3,
71
4,86
3,
89
3,64
AP,
BM
,BS,F
WR,M
R,P
PR
Am
alga
m
0,00
4,
19
4,33
2,
92
4,08
AP,
AV,B
M,B
S,C
R,G
B,R
EN
Cro
wn
Min
es
2,04
2,
50
4,19
3,
49
1,50
AP,
BM
,CR,G
B,R
EN
Indu
stria
0,94
2,
06
2,87
3,
87
2,94
AP,
BM
,CR,G
B,Q
U
Boo
ysen
s/Boo
ysen
s Res
erve
/Oph
irto
n 1,
00
3,77
5,
43
4,83
2,
94
AP,
BM
,CR,G
B,Q
U
Vill
age
Mai
n/Vill
age
Dee
p/N
ew C
entr
e 2,
50
2,50
4,
25
3,50
2,
11
AP,
BM
,GB,R
A
Ben
rose
4,
11
2,50
2,
50
2,13
1,
00
AP,
BM
,GB,Q
U,R
A
Ste
eled
ale/
Elec
tron
/Tul
isa
Park
2,
36
0,94
0,
00
3,27
1,
41
AP,
BM
,GB,P
PR
Aer
oton
3,
30
3,68
3,
00
6,47
3,
84
AP,
AV,B
M,C
R,G
B,Q
U
Dev
land
/Nan
cefie
ld
- 1,
00
1,00
0,
00
2,50
AP,
BM
,QU
Cle
vela
nd/H
erio
tdal
e 6,
13
5,56
6,
13
3,38
2,
36
AP,
BM
,GB,P
PR
New
land
s/M
artind
ale
- -
- -
- AP,
BM
,RA
Kew
/Wyn
berg
Eas
t 3,
30
2,36
2,
86
4,12
4,
95
AP,
AW
,BM
,GB,Q
U
Bra
mle
y Vie
w/L
omba
rdy
Wes
t 6,
00
5,00
2,
50
- -
AP,
BM
,GB
Mar
lbor
o
4,71
4,
08
2,36
6,
24
5,00
AP,
BM
,GB,G
I,Q
U
Hal
fway
Hou
se:
hi-t
ech
strip
5,99
4,
41
3,97
4,
66
3,14
AP,
AW
,BM
,BR,C
R,F
WR,G
B,G
I,M
R
Hal
fway
Hou
se:
Ric
hard
s D
rive
5,
79
4,63
6,
37
6,62
9,
31
AP,
AW
,BM
,BR,C
R,F
WR,G
B,G
I,M
R,Q
U,R
O
Com
mer
cia
4,27
2,
77
2,38
3,
44
0,50
AP,
AW
,BM
,BR,C
R,F
WR
Kra
mer
ville
/Eas
tgat
e Ex
t12
& E
xt13
2,
50
12,2
09,
60
5,00
7,
50
AP,
BM
,FW
R,G
B,G
I,Q
U
Linb
ro P
ark
4,12
4,
33
4,81
4,
22
5,50
AP,
AV,A
W,B
M,B
R,F
WR,G
B,G
I,M
R,P
PR,Q
U,R
O,W
HF
Rode’s Report 2018:3 78 Industrial rentals and vacancies
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Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
01
8:3
A
rea
size
lea
sed
in m
² C
ontr
ibu
tor
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
W
esco
Par
k/Ea
stga
te E
xt3,
Ext
11,
Ext6
, Ex
t8/M
albo
ro N
orth
(N
ew)
5,26
5,
93
4,09
4,
60
4,92
AP,
BM
,FW
R,G
B,Q
U
City
Dee
p 2,
35
2,87
2,
50
2,05
2,
59
AP,
BM
,GB,P
PR,Q
U
Nor
th R
idin
g 3,
77
3,77
3,
77
3,93
3,
30
BM
,BR,F
WR,G
B,W
HF
Sam
rand
Cen
turion
8,
37
6,14
6,
14
6,52
1,
96
AP,
BM
,BR,C
R,F
WR,M
R,W
HF
Bar
bequ
e D
owns
4,
89
5,32
4,
36
5,24
5,
24
AP,
AW
,BM
,BR,C
R,F
WR,G
B
Sel
by E
xt 1
2/13
/15/
19/2
0/24
/City
Wes
t 0,
94
5,25
6,
13
5,72
5,
56
AP,
BM
,GB,Q
U
Sel
by E
xt 5
/10/
14/1
8 0,
00
5,00
7,
50
7,50
7,
50
AP,
GB
Sel
by E
xt 1
1 -
- -
- -
AP
Sel
by E
xt 3
/4/6
-
- -
- -
AP
Den
ver
(Old
) 2,
50
2,50
2,
08
2,50
2,
50
AP,
BM
,GB,R
A
Den
ver
(New
) 2,
36
2,36
2,
36
2,36
2,
94
AP,
BM
,GB,Q
U
Kya
lam
i Bus
ines
s Pa
rk
4,66
5,
88
6,77
5,
35
5,80
AP,
AV,A
W,B
M,B
R,F
WR,G
B,M
R,Q
U
Reu
ven
- -
- 5,
00
-AP,
BM
Sel
by (
Old
)/Sel
by E
xt2/
Park
Cen
tral
2,
50
7,50
8,
31
7,50
-
AP,
BM
,BS,G
B,R
A
Rob
erts
ham
3,50
3,
50
1,00
0,
00
1,50
AP,
CR
Ford
sbur
g/M
ayfa
ir-
- -
- -
AP
Wat
erfa
ll1,
50
1,50
1,
00
3,50
3,
50AP,
BR,G
BW
est
Ran
d
Lea
Gle
n 4,
15
4,15
4,
02
4,00
5,
02
BM
,CR,F
WR,G
B,Q
U
Hon
eyde
w X
19,
20,
21 &
22
2,50
2,
17
2,17
2,
06
2,24
AP,
BM
,FW
R,G
B,R
EN,W
HF
Sto
rmill
3,24
4,
05
3,43
6,
09
5,92
AP,
AV,B
M,C
R,F
WR,G
B,Q
U,R
A,R
EN,W
HF
Cha
mdo
r5,
00
5,00
2,
50
0,94
2,
50
AP,
BM
,GB,W
HF
Fact
oria
0,00
2,
50
6,25
10
,20
- AP,
BM
,REN
,WH
F Kru
gers
dorp
: D
elpo
rton
-
- -
- -
GB
Ran
dfon
tein
: Aur
eus
3,26
0,
00
2,50
1,
50
3,00
AP,
BM
,QU
,REN
Rode’s Report 2018:3 79 Industrial rentals and vacancies
![Page 99: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/99.jpg)
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
01
8:3
A
rea
size
lea
sed
in m
² C
ontr
ibu
tor
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
Bol
toni
a -
- -
- -
AP,
BM
Roo
depo
ort:
Tec
hnik
on/M
anuf
acta
3,
50
6,00
7,
50
3,75
-
AP,
BM
,GB
Indu
stria
Nor
th
0,00
2,
50
- -
- AP,
BM
,GB
Rob
ertv
ille
1,90
4,
67
2,65
3,
40
4,68
AP,
AV,B
M,C
R,F
WR,G
B,Q
U,R
A,W
HF
Lase
rpar
k 4,
47
2,45
2,
45
4,31
5,
34
AP,
AW
,BM
,FW
R,G
B,R
EN,W
HF
East
Ran
d
Elan
dsfo
ntei
n4,
09
3,91
4,
40
7,20
7,
68
AP,
BM
,BS,F
WR,G
B,M
E,M
R,O
S,O
SO
,PPR
,
QU
,RO
Tunn
ey/G
reen
hills
4,53
4,
89
4,72
5,
17
2,80
AP,
BM
,BR,B
S,F
WR,G
B,M
E,M
R,O
S,P
PR,
Q
U,W
HF,
ZZ
Hen
ville
4,08
3,
74
5,31
5,
10
2,16
BM
,FW
R,M
E,M
R,O
S,P
PR,W
HF
Mea
dow
broo
k/W
ilbar
t5,
60
5,22
4,
37
6,23
3,
44
BM
,BR,B
S,F
WR,G
B,M
E,M
R,O
S,O
SO
,PPR
,
RO
Sun
nyro
ck
3,77
3,
16
3,74
4,
44
4,50
AP,
BM
,BR,F
WR,G
B,M
E,M
R,O
S,O
SO
,PPR
,
QU
,RO
Rus
tivi
a/Act
ivia
Par
k 2,
87
3,37
3,
59
3,59
3,
64
AP,
BM
,FW
R,G
B,M
E,M
R,O
S,O
SO
,PPR
,
Q
UEa
stle
igh
5,28
5,
87
5,06
5,
50
4,22
AP,
BM
,BR,B
S,F
WR,G
B,M
E,M
R,O
S,P
PR
Seb
enza
Ext
14
2,11
2,
50
4,67
4,
92
2,76
AP,
BM
,BR,F
WR,G
B,M
E,M
R,O
S,P
PR,Q
U
Spa
rtan
Ext
16
(Seb
enza
Lin
k) +
2,
76
3,11
4,
04
3,66
4,
25
AP,
BM
,BR,B
S,F
WR,G
B,M
E,M
R,O
S,P
PR,
Ext1
,3,7
Q
U,R
OIs
ando
3,
81
3,95
4,
26
4,28
4,
27
AP,
BM
,BR,F
WR,G
B,M
E,M
R,O
S,P
PR,Q
U,
RA,R
OIs
ando
3
3,28
2,
77
2,74
3,
36
2,71
AP,
BM
,BR,F
WR,M
E,M
R,O
S,P
PR,Q
U,R
O
Jet
Park
4,
42
4,38
3,
87
3,64
3,
80
AP,
BM
,BR,B
S,F
WR,G
B,M
E,M
R,O
S,O
SO
,
PPR,Q
U,R
A,R
O,W
HF
Rode’s Report 2018:3 80 Industrial rentals and vacancies
![Page 100: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/100.jpg)
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
01
8:3
A
rea
size
lea
sed
in m
² C
ontr
ibu
tor
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
Alrod
e &
Xs
0,50
0,
50
0,50
2,
83
1,89
AP,
BM
,FW
R,G
B
Alrod
e Sou
th
5,28
6,
46
5,04
5,
16
6,22
AP,
BM
,BR,F
WR,G
B,Q
U
Alb
erto
n 4,
03
3,77
1,
89
1,94
3,
30
AP,
BM
,FW
R,G
B,Q
U
Aer
opor
t/Spa
rtan
Ext
2
1,91
2,
36
3,54
5,
12
5,31
AP,
AV,B
M,B
R,F
WR,G
I,M
E,M
R,O
S,P
PR,
QU
,RA
Del
ville
1,
50
1,50
0,
00
0,00
2,
05
AP,
BM
,PPR
,QU
Roo
deko
p 4,
31
4,08
2,
97
2,75
3,
18
AP,
BM
,FW
R,G
B,M
R,P
PR,Q
U
Wad
evill
e: I
ndus
tria
l zon
ing
3,74
3,
68
4,36
3,
17
4,32
AP,
BM
,FW
R,G
B,P
PR
Rou
te 2
4/M
eado
wda
le
2,83
2,
75
2,65
3,
83
4,27
AV,B
M,B
R,F
WR,G
B,M
E,M
R,O
S,O
SO
,PPR
,
QU
,RO
Ger
mis
ton
S/I
ndus
trie
s E
1,50
0,
00
1,41
0,
94
2,59
AP,
BM
,BS,G
B,P
PR
Drieh
oek/
Indu
stries
W
6,24
4,
08
3,40
3,
27
3,77
AP,
BM
,GB,P
PR
Kni
ghts
8,
93
7,91
3,
50
5,08
3,
50
AP,
BM
,BS,P
PR,Q
U
Spa
rtan
Pro
per
4,24
4,
28
3,71
4,
64
4,82
AP,
BM
,BR,B
S,F
WR,G
B,M
E,M
R,O
S,P
PR
Foun
ders
Vie
w
4,16
3,
54
4,04
4,
69
5,81
AP,
BM
,BR,B
S,F
WR,G
B,M
E,O
S,P
PR,R
A
Long
mea
dow
4,
57
4,20
3,
14
4,14
5,
42
AV,B
M,B
R,B
S,F
WR,G
B,M
E,M
R,O
S,O
SO
,PPR
,QU
,RA,Z
Z
Pom
ona/
Kem
pton
Par
k 4,
46
5,52
6,
27
7,94
8,
01
AP,
BM
,BR,F
WR,G
B,M
E,O
S,P
PR,Q
U,R
O
Gos
fort
h Pa
rk
3,94
3,
94
5,34
5,
34
4,65
AP,
FWR,G
B,M
E,M
R,P
PR
Far
East
Ran
d
Bok
sbur
g N
orth
& E
ast
4,95
4,
83
4,31
5,
42
3,74
AP,
BM
,BR,F
WR,G
B,M
R,R
A,R
O,W
HF
Ben
oni
5,59
5,
59
3,72
3,
38
4,19
AP,
BM
,FW
R,G
B,R
A,W
HF
New
Era
/Vul
cani
a 4,
50
4,19
4,
19
4,71
0,
00
AP,
BM
,GB
Nuf
field
6,
94
6,94
4,
42
3,83
2,
94
AP,
BM
,BS,G
B,Q
U
Fulc
rum
6,
00
6,00
3,
50
- -
AP,
GB
Ape
x 8,
26
8,44
7,
09
6,28
6,
12
AP,
GB,M
R,Q
U
Labo
re
7,50
7,
50
- -
2,50
AP,
GB
Mor
ehill
Ext
8 B
enon
i 7,
26
6,26
4,
33
3,30
6,
00
AP,
BS,G
B,Q
U
Rode’s Report 2018:3 81 Industrial rentals and vacancies
![Page 101: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/101.jpg)
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
01
8:3
A
rea
size
lea
sed
in m
² C
ontr
ibu
tor
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
P
reto
ria
Cha
rlot
te M
axek
e 5,
00
2,50
5,
00
4,50
2,
50
AP,
CI
Pret
oria
Ind
ustr
ial T
owns
hip
2,50
0,
00
2,50
2,
50
0,00
AP,
HN
Koe
does
poor
t -
- -
- -
AP
Wal
tloo
/Des
patc
h 2,
36
2,50
2,
50
7,50
5,
00
AP,
BR,C
I Silv
erto
n/Silv
erto
ndal
e6,
24
4,08
2,
36
2,36
-
AP,
BR,C
ISam
cor
Park
2,
50
0,00
0,
00
2,50
-
AP,
BR
Sun
derlan
d Rid
ge
2,50
1,
00
2,50
5,
00
7,50
AP,
HN
H
erm
anst
ad2,
50
2,50
0,
00
2,50
2,
50
AP,
CI
Kirkn
ey
- -
- -
- AP
Hen
nops
park
X15
& X
7 1,
00
1,50
2,
50
0,00
0,
00
AP,
HN
G
atew
ay2,
05
1,41
3,
30
3,77
-
AP,
BR,M
AS
Lytt
leto
n M
anor
X4/
X6
2,50
5,
00
- -
- AP,
CI
Pret
oria
Nor
th
0,00
-
- -
- AP,
CI
Silv
erto
ndal
e X1
4,08
2,
36
0,00
2,
50
- AP,
BR,C
I Kle
rkso
ord
- -
- -
- AP
Ros
slyn
-
- -
- -
AP
Rou
te 2
1 Cor
pora
te P
ark
- -
- -
- Cen
turion
-
- -
- -
HN
Ir
ene
(exc
l. Rou
te 2
1 Cor
p. P
ark)
-
- -
- -
AP
Pol
okw
ane
Lebo
wak
gom
o -
- -
- -
Sup
erbi
a 10
,00
2,50
2,
50
0,00
-
MO
,TG
In
dust
ria
0,00
1,
50
5,00
2,
50
-M
O,T
GLa
dine
0,00
2,
50
1,50
-
-M
O,T
GFu
tura
-
- -
- -
Rode’s Report 2018:3 82 Industrial rentals and vacancies
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Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
01
8:3
A
rea
size
lea
sed
in m
² C
ontr
ibu
tor
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
La
boria
- -
- -
- TG
M
agna
Via
0,
00
6,60
2,
50
- -
ES,M
O,N
ET,T
G
Ses
hego
-
- -
- -
Nel
spru
itN
elsp
ruit E
ast
0,00
0,
00
0,00
0,
00
- H
H,K
EL,P
M,R
Z
Nel
spru
it W
est
0,00
0,
00
0,00
0,
00
- H
H,K
EL,P
M,R
Z
Roc
ky’s
Drift
0,
00
0,00
0,
00
0,00
-
HH
,KEL
,PM
,RZ
Riv
ersi
de P
ark
0,00
0,
00
0,00
0,
00
- H
H,K
EL,P
M,R
Z
Du
rban
Spr
ingf
ield
Par
k 3,
17
2,05
2,
36
0,00
2,
36
PC,M
L,SRE
May
ville
7,
50
5,00
5,
00
2,50
1,
50
ML,
SRE
Phoe
nix
7,50
7,
50
6,00
5,
25
0,94
M
L,PC
,SRE
Nor
th C
oast
Rd/
Briar
dene
4,
08
2,36
2,
36
2,36
0,
00
ML,
PC,S
RE
Briar
dene
Ind
ustr
ial P
ark
8,29
2,
36
0,00
2,
36
2,94
FW
R,G
I,M
L,PC
,SRE
Um
geni
Rd/
Sta
mfo
rd H
ill
2,50
6,
24
6,26
5,
66
- FW
R,M
L,PC
,SRE
Um
bilo
/Syd
ney
Rd/
Gal
e St
5,00
5,
00
4,97
2,
36
0,00
FW
R,M
L,PC
Ja
cobs
6,
24
6,24
4,
08
4,08
5,
45
FWR,M
L,PC
,SRE
Mob
eni
7,50
7,
50
4,15
4,
15
3,54
FW
R,M
L,PC
,SRE
Pros
pect
on
0,00
4,
71
3,03
3,
03
5,12
FW
R,M
L,PC
,SRE
Itha
la I
ndus
tria
l Est
ate
1,50
1,
50
0,00
2,
50
2,50
M
L,PC
Pi
neto
wn
Cen
tral
2,
05
2,12
2,
36
2,36
5,
00
FWR,G
I,M
L,PC
,SRE
New
Ger
man
y 4,
19
4,19
2,
36
2,36
2,
36
FWR,M
L,PC
,SRE
Kw
a D
ebek
a In
dust
rial
Par
k -
- -
- -
Isip
ingo
-
- -
- -
ML
Ros
sbur
gh/S
outh
Coa
st R
d -
- -
- -
ML,
PC
Edw
in S
wal
es D
rive
5,
00
2,50
2,
50
2,50
0,
00
ML,
SRE
Rode’s Report 2018:3 83 Industrial rentals and vacancies
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Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
01
8:3
A
rea
size
lea
sed
in m
² C
ontr
ibu
tor
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
G
len
Ani
l 5,
39
5,39
6,
15
7,04
8,
50
FWR,G
I,M
L,PC
,SRE
Brick
field
Rd
2,50
2,
50
2,50
2,
50
0,00
M
L,SRE
Ver
ulam
-
- -
- -
ML
Can
elan
ds
- -
- -
- M
L To
ngaa
t -
- -
- 5,
00
ML,
PC
New
Wes
tmea
d/M
ahog
any
2,05
1,
41
2,45
2,
36
2,17
FW
R,G
I,M
L,PC
,SRE
Wes
tmea
d 4,
32
3,30
3,
30
2,36
2,
50
FWR,M
L,PC
,SRE
Mar
iann
Par
k/Sou
thm
ead
7,50
3,
00
0,00
1,
00
- M
L,PC
,SRE
Max
mea
d 6,
24
4,19
4,
19
2,36
0,
94
ML,
PC,S
RE
Rin
groa
d In
dust
rial
Par
k -
- -
- -
PC
Avo
ca/R
ed H
ill/N
orth
gate
4,
08
2,36
2,
36
2,36
2,
36
ML,
PC,S
RE
Falc
on P
ark
5,00
5,
00
5,00
-
- M
L,PC
Riv
erho
rse
Val
ley
Bus
ines
s Es
tate
7,
07
4,71
4,
71
6,24
3,
54
FWR,M
L,PC
,SRE
Mou
nt E
dgec
ombe
7,
40
7,50
8,
03
4,33
3,
30
FWR,M
L,PC
,SRE
Um
bogi
ntw
ini/
Sou
thga
te
- -
- 5,
00
5,00
M
L,PC
Sou
thga
te I
ndus
tria
l Par
k 1,
00
1,00
0,
00
1,00
2,
50
ML,
PC
Hib
iscu
s In
dust
rial
Par
k -
- -
- -
Um
geni
Par
k 2,
50
2,50
2,
50
4,00
1,
50
ML,
PC,S
RE
Ham
mer
sdal
e 0,
00
0,00
1,
41
1,41
1,
50
ML,
PC,Q
P,SRE
Cat
o Rid
ge
6,00
6,
00
6,00
6,
00
4,19
M
L,PC
,QP,
SRE
Bal
lito
- -
- -
- SRE
Dub
e Tr
adep
ort
- -
- -
- SRE
Lad
ysm
ith
Ezak
heni
/Pie
ters
-
- D
ansk
raal
-
- -
- -
DE
Rode’s Report 2018:3 84 Industrial rentals and vacancies
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Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
01
8:3
A
rea
size
lea
sed
in m
² C
ontr
ibu
tor
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
N
ambi
ti
--
- -
- D
ECol
enso
-
- -
- -
Cap
e P
enin
sula
Vik
ing
Plac
e 4,
38
2,50
3,
08
4,08
1,
50
AN
,AP,
DN
,DW
,GY
Glo
sder
ry
-Pa
arde
n Ei
land
/Met
ro
6,05
M
onta
gue
Gar
dens
6,
12
Mar
coni
Bea
m
3,98
Kill
arne
y G
arde
ns
4,00
Rac
ing
Park
5,
48
- -
- -
DW
,PL
3,89
2,
33
2,33
5,
25
AN
,AP,
AX,C
R,C
RE,
DW
4,
23
6,82
7,
66
8,81
AN
,AP,
AX,C
R,C
RE,
DN
,DW
,LF,
PL
3,50
2,
62
0,47
0,
50
AN
,AP,
AX,C
R,C
RE,
DN
,DW
,LF
3,83
2,
91
3,95
7,
50
AP,
AX,C
R,C
RE,
DW
,LF,
PL
6,49
7,
78
2,05
0,
00
AP,
AX,C
R,C
RE,
DN
,DW
,LF,
PL
Atlan
tis
--
- -
- CR
Woo
dsto
ck/S
alt
Riv
er/O
bser
vato
ry
--
- -
- CR,P
LAth
lone
1 &
2
--
- -
- AP
Lans
dow
ne N
eris
sa
4,08
2,
50
2,50
7,
07
7,50
AP,
DW
San
d In
dust
ria
--
- -
- AP
Ott
ery
Hill
star
2,
94
2,05
2,
05
- -
AP,
CR,D
W
Ott
ery
Sun
set
--
- -
- AP
Die
p Riv
er
7,50
2,
50
0,00
-
- CR,D
W,P
L El
finda
le
--
- -
-M
onw
ood/
Phili
ppi
--
- 2,
50
- AP,
CR
Ret
reat
/Ste
enbe
rg
- 10
,00
- -
- CR,P
L Cap
rico
rn P
ark
0,00
0,
00
- -
- CR,D
W,I
KP
Mai
tlan
d 3,
45
3,31
3,
86
4,47
4,
32
AN
,AP,
AX,C
R,D
N,D
W,G
Y N
dabe
ni
2,27
2,
14
3,73
7,
10
5,93
AN
,AP,
AX,C
R,D
D,D
W,G
Y Ep
ping
1 &
2
6,37
6,
83
7,35
5,
87
5,28
AN
,AP,
AX,C
R,D
N,D
W,G
AM
,GY,
RR
Rode’s Report 2018:3 85 Industrial rentals and vacancies
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Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
01
8:3
A
rea
size
lea
sed
in m
² C
ontr
ibu
tor
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
W
P Pa
rk
5,64
3,
16
3,77
1,
00
1,41
AN
,AP,
AX,D
N,D
W,G
Y El
sies
Riv
er (
excl
. Cen
tral
Par
k)
3,27
1,
00
1,79
0,
43
0,94
AN
,AP,
CR,D
D,G
Y Pa
row
Bea
conv
ale
3,94
3,
48
4,63
2,
12
0,47
AN
,AP,
CR,D
D,D
N,D
W,F
S,G
Y Ty
gerb
erg
Bus
ines
s Pa
rk
6,80
6,
02
7,77
7,
96
11,3
0 AN
,AP,
DD
,DN
,DW
,FS,G
Y Pa
row
Ind
ustr
ia
5,67
5,
56
6,04
4,
44
3,11
AN
,AP,
CR,D
D,D
N,D
W,F
S,G
Y,RR
Paro
w E
ast
6,72
7,
48
7,48
6,
13
8,16
AN
,AP,
DD
,DN
,DW
,FS
Bel
lvill
e O
akda
le
0,00
0,
00
0,00
2,
50
0,00
D
N,F
S,P
F Bel
lvill
e Stikl
and/
Kay
mor
5,
83
6,64
8,
64
7,99
7,
67
AN
,AP,
CR,D
D,D
N,D
W,L
F,N
E,PF
,WD
Bel
lvill
e Tr
iang
le
2,50
2,
50
4,24
4,
63
4,96
AN
,AP,
DD
,DN
,DW
,LF,
PF,W
D
Bel
lvill
e Sou
th/S
acks
Circl
e 5,
25
6,51
6,
02
5,50
4,
23
AN
,AP,
CR,D
D,D
N,D
W,F
S,L
F,PF
,RR,W
D
Kra
aifo
ntei
n 5,
10
5,54
4,
71
5,22
4,
00
AN
,AP,
CR,D
D,D
N,L
F,W
D
Bra
cken
fell
Indu
stria
5,62
5,
99
4,78
2,
52
4,43
AN
,AP,
CR,D
D,F
S,L
F,PF
,WD
Ev
erite
Bra
cken
fell
4,96
6,
57
6,87
6,
75
7,35
AN
,AP,
CR,D
D,D
N,F
S,L
F,PF
,WD
Kui
ls R
iver
4,
65
2,83
3,
48
2,96
2,
33
AN
,AP,
CR,D
D,D
N,L
F,PF
,RS,W
D
Bla
ckhe
ath
3,45
2,
67
7,01
1,
86
2,24
AN
,AP,
CR,D
D,D
N,L
F,PF
,RS
Sax
enbu
rg I
ndus
tria
l Par
k 2,
45
2,00
5,
15
4,86
2,
17
AN
,AP,
CR,D
D,L
F,RS
Oka
vang
o 6,
55
5,01
5,
89
6,10
4,
27
AN
,AP,
CR,D
D,D
N,L
F,PF
,WD
Bra
cken
gate
2,
17
3,54
3,
74
2,45
4,
66
AN
,AP,
CR,D
D,D
N,L
F Pa
arl
- 1,
50
- -
- CR,P
RU
,SF
Wel
lingt
on
- -
3,50
-
- CR,S
F Con
term
ansk
loof
0,
00
0,00
2,
50
2,50
2,
50
AP,
CR,L
F,N
EX
Riv
erga
te
2,36
0,
00
2,50
2,
50
- AP,
CR,L
F Airpo
rt I
nd (
nort
h of
sew
erag
e fa
rm)
0,00
2,
12
2,95
2,
05
0,94
AN
,AP,
AX,C
R,G
Y Airpo
rt I
nd (
wes
t of
Bor
cher
ds Q
uarr
y)
0,87
2,
17
0,87
2,
06
2,12
AN
,AP,
AX,C
R,G
Y,N
EX
Airpo
rt I
nd (
east
of
Bor
cher
ds Q
uarr
y)
0,87
2,
60
4,66
3,
19
3,74
AN
,AP,
AX,C
R,G
Y
Rode’s Report 2018:3 86 Industrial rentals and vacancies
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Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
01
8:3
A
rea
size
lea
sed
in m
² C
ontr
ibu
tor
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
D
urba
nvill
e In
dust
rial
Par
k -
- -
- -
AP
Nor
thga
te I
ndus
tria
l Par
k -
- -
- -
Hel
der
ber
gTh
e In
terc
hang
e -
- -
- -
RS
Hel
derb
erg
Indu
strial
Par
k -
- -
- -
RS
Gan
ts
- -
- -
- RS
Hal
f W
ay
- -
- -
- RS
Som
erse
t Bus
ines
s Pa
rk
- -
- -
- RS
Geo
rges
Par
k/O
nver
wac
ht
- -
- -
- RS
Man
sfie
ld
- -
- -
- RS
Firg
rove
-
- -
- -
Str
and
Hal
t -
- -
- -
Bro
adla
nds
- -
- -
- P
ort
Eliz
abet
hD
eal P
arty
1,
18
6,12
4,
80
3,25
3,
25
BD
,BR,H
S,N
RG
N
orth
End
5,
12
5,41
5,
12
5,12
4,
15
BR,B
D,H
S,N
RG
,TR
Kor
sten
/Nea
ve/S
idw
ell/
Syd
enha
m
6,37
5,
45
3,54
3,
54
4,27
BR,B
D,H
S,N
RG
,TR
Sou
th E
nd W
alm
er
4,71
10
,82,
50
- -
BR,H
S,N
RG
U
iten
hage
: Vol
ksw
agen
are
a/N
MBLP
1,
18
1,25
4,
15
3,54
2,
50
BD
,BR,H
S,N
RG
U
iten
hage
: H
ella
/Kru
isri
vier
1,
18
1,31
1,
39
2,07
2,
07
BD
,BR,H
S,N
RG
Str
uand
ale
- -
3,12
3,
25
3,25
BD
,BR,H
S,N
RG
M
arkm
an T
owns
hip
- -
1,77
1,
77
1,77
BD
,BR,H
S,N
RG
Pe
rsev
eran
ce
2,36
2,
04
2,17
2,
17
2,17
BD
,BR,H
S,N
RG
W
alm
er
4,15
7,
50
2,50
-
- BD
,BR,H
S,N
RG
G
reen
bush
es
1,25
1,
18
3,63
3,
91
3,91
BD
,BR,H
S,N
RG
Fa
irvi
ew
2,07
2,
07
2,50
3,
12
- BD
,BR,H
S,N
RG
Rode’s Report 2018:3 87 Industrial rentals and vacancies
![Page 107: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/107.jpg)
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
01
8:3
A
rea
size
lea
sed
in m
² C
ontr
ibu
tor
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
Ea
st L
ond
on
Arc
adia
4,
19
2,36
0,
94
1,41
-
CAP,
CH
R,E
R
Gat
ely/
Woo
dbro
ok
0,00
0,
00
2,36
2,
94
4,08
CAP,
CH
R,E
R
Wils
onia
2,
50
0,00
0,
25
2,36
1,
00
CAP,
CH
R,E
R
Bra
elyn
0,
00
0,00
1,
50
0,50
0,
00
CH
R,E
R
Nor
then
d
0,00
0,
00
1,50
5,
00
- CAP,
CH
R,E
R
Chi
selh
urst
2,
36
0,00
0,
00
- -
CAP,
CH
R,E
R
Mei
sies
Hal
t 2,
50
0,00
0,
00
- -
CH
R,E
R
Bea
con
Bay
Ind
ustr
ial
2,50
0,
00
2,50
-
- CH
R,E
R
IDZ
- -
- -
- ER
W
esba
nk I
ndus
tria
l Are
a 2,
50
2,50
0,
00
- -
CAP,
CH
R
Blo
emfo
nte
in
Hilt
on
1,41
0,
47
2,05
1,
50
0,00
EK
,EQ
V,N
R
East
End
1,
41
0,47
2,
05
1,50
0,
50
EK,E
QV,N
R
Har
vey
Roa
d 4,
50
3,30
6,
24
3,00
1,
50
EK,E
QV,N
R
Old
Ind
ustr
ial
0,47
1,
89
3,40
0,
50
1,00
EK
,EQ
V,M
I,N
R
Ham
ilton
: M
ill S
t 3,
00
3,00
2,
00
2,00
3,
00
EK,E
QV
Ham
ilton
: G
Lub
be S
t 2,
50
1,89
2,
16
1,50
2,
00
EK,E
QV,N
R
Esto
ire
1,63
0,
82
1,63
2,
50
3,50
EK
,EQ
V,N
R
Geo
rge
Geo
rge
Cen
tral
3,
30
2,36
1,
08
1,41
2,
94
BVF,
GRV,M
UL
Tam
sui I
ndus
tria
4,
71
5,17
2,
94
1,70
3,
77
BVF,
GRV,M
UL
Paca
ltsd
orp
Indu
stria
6,24
3,
86
1,89
1,
41
0,94
BVF,
GRV,M
UL
Rode’s Report 2018:3 88 Industrial rentals and vacancies
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Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
01
8:3
A
rea
size
lea
sed
in m
² C
ontr
ibu
tor
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
P
iete
rmar
itzb
urg
W
illow
ton
-
- -
- -
HN
M
kom
deni
-
- -
- -
HN
Cam
ps D
rift
-
- -
- -
HN
Pi
eter
mar
itzb
urg
Cen
tral
-
- -
- -
HN
W
ind
hoe
k N
orth
-
- -
- -
TE
Lafr
enz
- -
- -
- TE
Sou
th
- -
- -
- TE
Pr
ospe
rita
-
- -
- -
TE
Rode’s Report 2018:3 89 Industrial rentals and vacancies
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Rode’s Report 2018:3 90 Industrial rentals and vacancies
Notes to the industrial rental tables
1. The rentals are the achievable or market rates for the quarter shown in the tableheading, and these apply to industrial and warehouse space for the area sizes indicated.The rentals are the means (averages) of the rates as per our panels of experts in thevarious cities.
2. The rental rates assume gross leases, market escalation rates and leases of 3 to 5years.
3. In terms of a gross lease, the tenant in a stand-alone building typically pays for onlyhis utilities, like refuse removal, water, sewerage and electricity, as well as internalmaintenance and maybe increases in rates and taxes. He provides and pays for his ownsecurity. All other expenses are for the account of the landlord. In a park, the tenantpays, in addition to his gross rental, his pro rata share of security costs, security lightingand landscaping.
4. The rental rates also apply to the office portion, where this is less than 10% of the totalbuilding area. This means we quote ‘through rates’. (See Glossary – Annexure 1.) Forlarger office portions, the office rental is, as a rule of thumb, about 150% of theindustrial rental rate.
5. Prime space is space that is easily lettable because it satisfies each of the followingquality criteria:
a. generally in a good conditionb. satisfactory macro-access (i.e. access to freeway)c. satisfactory micro-access (i.e. from street to building)d. proper loading facilitiese. eaves >4,0m (excluding micro-/mini-units)f. on ground levelg. adequate three-phase electrical powerh. clear spans.
However, a building may have additional enhancements that could improve lettability by increasing the size of the potential tenant pool. Such enhancements could include sufficient office accommodation, adequate parking, sprinkler systems, masonry up to sill height, adequate floor loadings, roof insulation and sufficient yard space.
6. Secondary space is space that is not classifiable as prime because it does not satisfy alleight prerequisites for prime space listed above. Such space is typically old buildings orstructures that have been haphazardly renovated. They would have poor access, toolittle yard space or office accommodation, inadequate goods lifts, no three-phase powerand obsolete electrics and ablution facilities. Such space is often (but not exclusively)found in highly urbanised areas.
7. Vacancy scale for industrial townships. The vacancy levels are based on a scale of 1 to9 as shown below:
1 2 3 4 5 6 7 8 9
Low Medium High
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Rode’s Report 2018:3 91 Industrial rentals and vacancies
The scale should be interpreted as follows:
1 = low- vacancy 2 = low vacancy 3 = low+ vacancy 4 = medium- vacancy 5 = medium vacancy 6 = medium+ vacancy 7 = high- vacancy 8 = high vacancy 9 = high+ vacancy
Where: low = <10% vacancy; medium = 10-20% vacancy; high = >20% vacancy.
8. For notes on how to use a regression equation to interpolate a rental rate, seeAnnexure 3.
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Rode’s Report 2018:3 92 Industrial rentals and vacancies
Table 7.4 Predominant market escalation rates (%)
for industrial leases Average as in quarter 2018:3
5-year leases Mean SD N
Central Witwatersrand 8,05 0,27 10 West Rand 8,29 0,51 10 East Rand 8,18 0,37 16 Far East Rand 8,14 0,44 7 Pretoria 7,50 0,87 4Polokwane 7,75 0,43 4Nelspruit 7,50 0,00 4Durban 8,25 0,38 6Ladysmith 8,00 - 1Cape Peninsula 8,07 0,42 14 Helderberg - - - Stellenbosch 8,00 - 1 Port Elizabeth 8,00 0,00 3 East London 7,67 0,47 3 Bloemfontein 8,00 0,00 2George 7,50 0,41 3 Pietermaritzburg 8,00 - 1 Windhoek 8,00 - 1 Notes: 1. These are the averages of the predominant — i.e. most often achieved — market escalation rates as reported
by our panel of experts.
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Rode’s Report 2018:3 93 Industrial rentals and vacancies
Table 7.5 Indicative operating expenses
for industrial buildings As in quarter 2018:3 in rands per m² per month
Stand-alone Park
R/m² SD N R/m² SD N Central Witwatersrand 9,39 2,29 7 11,11 2,27 7 West Rand 8,67 2,15 6 11,38 1,17 5 East Rand 8,16 1,32 12 9,62 1,47 11 Far East Rand 7,33 1,92 9 9,36 0,72 6 Pretoria 12,00 2,45 3 16,50 0,50 2 Polokwane 11,00 1,00 2 12,50 2,50 2 Nelspruit 9,75 0,00 4 11,00 0,00 4 Durban 17,50 2,50 2 22,75 4,75 2 Ladysmith - - - - - -Cape Peninsula 12,00 1,79 5 13,17 1,54 3 Helderberg 6,00 - 1 8,00 - 1 Stellenbosch - - - - - -Port Elizabeth 9,00 - 1 12,00 - 1 East London 8,00 - 1 10,75 0,75 2 Bloemfontein 11,00 6,00 2 10,50 5,50 2 George 6,67 3,40 3 8,67 3,70 3 Pietermaritzburg 12,00 - 1 15,00 - 1 Windhoek 35,00 - 1 30,00 - 1 Notes: The operating expenses are estimates for the past 12 months and are as per our expert panellists in the various cities. The following items are included: stand-alone buildings: rates and taxes and insurance (incl. Sasria) and park buildings: as above, plus security, security lighting, landscaping and management.
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Rode’s Report 2018:3 94 Industrial stand values
Chapter 8: Industrial stand values
Stand values still going strong Kobus Lamprecht
Stand values tend to track industrial rentals. Therefore, a sustained growth in stand values can only be expected on the back of a sustained increase in market rentals.
The performance of industrial or warehouse rentals is, in turn, driven by the performance of the sectors key to it, namely retail and manufacturing. The retail sector (real sales up 3%) performed notably better than the manufacturing sector in the first seven months of 2018. Recent data in both sectors paint a gloomy picture (see Chapter 7 for more detail).
As stand values are a residual item in a viability study, poor market-rental growth translates into very poor stand-value growth and vice versa. The pro forma viability study that shows how a land value is calculated using the residual approach, is shown in Table 8.1 on the next page. Note the sensitivity of stand values to changes in market rentals. The effect is akin to financial gearing.
Stand-value performance
In the third quarter of 2018, national stand values grew by 7% for the second consecutive quarter, again beating building-cost inflation (about 4%). All major industrial regions managed to outpace inflation.
Regionally, the Cape Peninsula remains the standout, with nominal market rental growth of 12%. However, growth has
slowed for the third consecutive quarter, perhaps starting to reflect the limits of affordability.
Rentals were still doing well in the Central Witwatersrand (+11%), Durban (+9%) and the East Rand (+6%). The West Rand is the exception among the major industrial regions, with stand values down in nominal and real terms.
It must be noted that rentals have generally started to slow, which could start to impact on stand-value growth in coming quarters. This of course, if rentals continue to slow.
2,000
1,500
1,000
500400
300250200
150
100
5092 94 96 98 00 02 04 06 08 10 12 14 16 18
Cape PeninsulaDurbanEast RandCentral Witwatersrand
Nominal industrial stand values (1.000m² stands)
Smoothed
R/m
²(l
og s
cale
)
Source of data: Rode's Time Series
1,000900800700600
500
400
300
200
10092 94 96 98 00 02 04 06 08 10 12 14 16 18
Cape PeninsulaDurbanEast RandCentral Witwatersrand
Real industrial stand values (1.000m² stands)2005 rands
Smoothed
R/m
²(l
og s
cale
)
Source of data: Rode's Time Series
Deflated by BER BCI (2005=100)
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Rode’s Report 2018:3 95 Industrial stand values
Table 8.1 Sensitivity of land value to changes in rent
A simplistic viability study Scenario
A B % changeMarket rent year 1 (net) R10 R12 +20% Capitalization rate 10% 10% MV on completion (net rent capitalized) R100 R120 +20% Construction costs -R60 -R60 +0% Profit margin* -R17 -R20 +18% Max value of land† R23 R40 +74% * Assuming a constant profit margin of 20% of cost (i.e. construction costs and land costs)† Thus land value is a residual item in this viability study: it is the maximum the developer can afford to pay for the land.
The remainder of this chapter includes market values for level, serviced stands in named industrial townships. The industrial land value tables contain regression parameters to allow readers to interpolate land values for area sizes other than those given in the tables. This is necessary because the relationship between price and square metreage is not linear.
Normally, the larger an industrial stand, the cheaper the stand value per square metre. However, we find this is not always
the case, most likely due to a shortage or an oversupply in certain size categories.
For more details on how to use these equations, refer to Annexure 3 (annexure page XII).
This concludes our chapter on industrial stand values.
PS: If you do not understand a term used in this article, please consult the Glossary (Annexure 1).
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Tab
le 8
.2
Mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
18
:3
(R/
m²
excl
. V
AT)
A
rea
size
in
m²
Vac
ancy
g
rad
e a
br²
1.0
00
2
.00
0
5.0
00
1
0.0
00
C
entr
al W
itw
ater
sran
d
Cam
brid
ge P
ark
1.35
0 1.
350
1.25
0 1.
250
1,0
7,49
4 -0
,040
0,
84
Wyn
berg
Pro
per
1.05
0 1.
050
1.05
0 1.
100
1,0
6,82
8 0,
017
0,58
Str
ijdom
Par
k 1.
200
1.22
5 1.
175
1.10
0 1,
5 7,
381
-0,0
39
0,71
Kya
San
d 97
4 91
1 81
4 81
3 1,
8 7,
457
-0,0
85
0,93
Cla
yvill
e/O
lifan
tsfo
ntei
n 75
0 70
0 65
0 61
7 3,
0 7,
199
-0,0
84
1,00
Chl
oork
op
800
783
775
715
1,5
6,99
6 -0
,044
0,
81
Am
alga
m
- 1.
500
750
750
--
- -
Cro
wn
Min
es
1.30
0 1.
300
1.30
0 1.
200
2,3
7,39
2 -0
,030
0,
58
Indu
stria
1.30
0 1.
300
1.30
0 1.
000
- 7,
897
-0,0
98
0,58
Boo
ysen
s/Boo
ysen
s Res
erve
/Oph
irto
n 82
5 80
0 70
8 70
0 2,
0 7,
271
-0,0
80
0,93
Vill
age
Mai
n/Vill
age
Dee
p/N
ew C
entr
e 80
0 80
0 80
0 80
0 -
6,68
5 0,
000
- Ben
rose
80
0 79
2 78
3 76
7 2,
0 6,
807
-0,0
18
0,95
Ste
eled
ale/
Elec
tron
/Tul
isa
Park
77
5 77
5 77
5 77
5 1,
0 6,
653
0,00
0 -
Aer
oton
1.
013
988
913
880
2,0
7,37
2 -0
,064
0,
98
Dev
land
/Nan
cefie
ld
800
800
675
525
3,0
8,01
4 -0
,183
0,
87
Cle
vela
nd/H
erio
tdal
e 78
8 77
5 75
0 73
8 2,
0 6,
874
-0,0
29
0,99
N
ewla
nds/
Mar
tind
ale
1.30
0 1.
300
1.10
0 1.
000
- 8,
056
-0,1
23
0,92
Kew
/Wyn
berg
Eas
t -
- -
- -
- -
- Bra
mle
y Vie
w/L
omba
rdy
Wes
t 50
0 50
0 50
0 50
0 -
6,21
5 0,
000
- M
arlb
oro
400
400
400
400
- 5,
991
0,00
0 -
Hal
fway
Hou
se:
hi-t
ech
strip
1.16
7 1.
167
1.23
3 1.
233
1,0
6,85
5 0,
029
0,84
H
alfw
ay H
ouse
: Ric
hard
s D
rive
1.
150
1.11
3 1.
125
1.11
3 1,
0 7,
112
-0,0
11
0,49
Com
mer
cia
767
767
738
700
2,0
6,93
1 -0
,040
0,
88
Kra
mer
ville
/Eas
tgat
e Ex
t 12
& E
xt 1
3 1.
800
1.80
0 1.
550
1.50
0 1,
3 8,
143
-0,0
91
0,90
Li
nbro
Par
k 1.
625
1.65
0 1.
490
1.47
5 3,
5 7,
766
-0,0
52
0,81
Rode’s Report 2018:3 96 Industria standl values
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Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² V
acan
cy
gra
de
ab
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Wes
co P
ark/
East
gate
Ext
3,
Ext
11,
Ext
6,
Ext8
/Mal
boro
Nor
th (
New
) -
- 80
0-
--
- -
City
Dee
p 87
5 87
5 87
5 86
3 2,
0 6,
814
-0,0
05
0,58
N
orth
Rid
ing
1.00
0 1.
000
1.00
0 1.
000
1,3
6,90
8 0,
000
- Sam
rand
Cen
turion
1.
100
1.10
0 97
5 97
5 1,
5 7,
452
-0,0
63
0,84
Bar
bequ
e D
owns
1.
167
1.16
7 1.
367
1.07
5 1,
6 7,
138
-0,0
07
0,01
Sel
by E
xt 1
2/13
/15/
19/2
0/24
/City
Wes
t 75
0 75
0 75
0 74
2 1,
0 6,
651
-0,0
04
0,58
Sel
by E
xt 5
/10/
14/1
8 80
0 80
0 80
0 78
8 1,
0 6,
728
-0,0
06
-0,7
6 Sel
by E
xt 1
1 76
7 76
7 75
0 75
0 1,
0 6,
724
-0,0
12
-0,9
2 Sel
by E
xt 3
/4/6
76
7 76
7 75
0 73
3 1,
0 6,
786
-0,0
20
-0,9
5 D
enve
r (O
ld)
617
550
550
550
- 6,
684
-0,0
43
-0,7
6 D
enve
r (N
ew)
843
843
833
825
2,0
6,81
0 -0
,010
-0
,96
Kya
lam
i Bus
ines
s Pa
rk
1.40
0 1.
400
1.36
7 1.
367
1,0
7,33
4 -0
,013
-0
,92
Reu
ven
- -
--
--
- -
Sel
by (
Old
)/Sel
by E
xt 2
/Par
k Cen
tral
85
0 85
0 80
0 80
0 1,
0 6,
971
-0,0
32
-0,9
2 Rob
erts
ham
- -
--
--
- -
Ford
sbur
g/M
ayfa
ir-
- -
- -
- -
- W
ater
fall
2.00
0 2.
000
1.50
0 1.
500
- 8,
672
-0,1
51
-0,9
2 C
entr
al W
itw
ater
sran
d
1.0
02
1
.00
7
93
8
90
7
1,6
W
est
Ran
d
Lea
Gle
n 80
0 75
0 73
3 73
3 2,
0 6,
915
-0,0
36
0,78
H
oney
dew
Ext
19,
20,
21
& 2
2 1.
025
1.04
0 91
7 81
3 2,
0 7,
704
-0,1
06
0,87
Sto
rmill
94
7 95
5 89
0 85
5 2,
3 7,
207
-0,0
49
0,88
Cha
mdo
r 27
5 27
5 25
0 22
5 -
6,26
4 -0
,089
0,
90
Fact
oria
1.
000
1.00
0 1.
000
850
- 7,
358
-0,0
61
0,58
Kru
gers
dorp
: D
elpo
rton
40
0 25
0 25
0 25
0 -
7,05
9 -0
,176
0,
58
Ran
dfon
tein
: Aur
eus
350
350
313
263
5,0
6,76
3 -0
,125
0,
86
Rode’s Report 2018:3 97 Industria standl values
![Page 117: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/117.jpg)
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Vac
ancy
g
rad
e a
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Bol
toni
a 30
0 30
0 30
0 20
0 -
6,82
8 -0
,152
0,
58
Roo
depo
ort:
Tec
hnik
on/M
anuf
acta
80
0 80
0 75
0 75
0 -
6,92
5 -0
,034
0,
84
Indu
stria
Nor
th
1.10
0 1.
100
925
850
3,0
7,88
3 -0
,123
0,
92
Rob
ertv
ille
838
838
800
800
2,0
6,90
1 -0
,024
0,
84
Lase
rpar
k 1.
050
1.05
0 91
7 1.
100
1,5
6,95
7 -0
,003
0,
00
Wes
t R
and
7
71
7
69
7
09
6
76
2
,5
East
Ran
d
Elan
dsfo
ntei
n 92
0 91
0 85
0 83
0 1,
8 7,
169
-0,0
49
0,95
Tu
nney
/Gre
enhi
lls
1.19
4 1.
194
1.15
7 1.
121
1,6
7,28
8 -0
,028
0,
90
Hen
ville
95
0 95
0 86
0 85
0 1,
4 7,
260
-0,0
57
0,88
M
eado
wbr
ook/
Wilb
art
1.10
0 1.
050
1.02
5 96
3 2,
0 7,
373
-0,0
54
0,95
Sun
nyro
ck
1.10
0 1.
075
1.02
5 98
8 1,
1 7,
336
-0,0
48
0,99
Rus
tivi
a/Act
ivia
Par
k 88
0 88
0 80
0 77
0 1,
3 7,
241
-0,0
64
0,92
Ea
stle
igh
1.00
0 98
0 91
0 89
0 1,
0 7,
291
-0,0
55
0,97
Seb
enza
Ext
14
983
967
863
850
1,3
7,39
5 -0
,072
0,
92
Spa
rtan
Ext
16
(Seb
enza
Lin
k) +
Ext
1,3
,7
940
930
879
675
1,5
7,81
2 -0
,133
0,
75
Isan
do
990
990
900
885
2,0
7,29
9 -0
,056
0,
89
Isan
do 3
1.
015
1.01
5 94
5 88
0 1,
7 7,
386
-0,0
64
0,90
Je
t Pa
rk
1.24
3 1.
243
1.13
8 1.
094
1,5
7,56
2 -0
,061
0,
92
Alrod
e &
Xs
767
767
710
658
1,3
7,14
1 -0
,069
0,
90
Alrod
e Sou
th
733
688
640
563
2,0
7,36
9 -0
,110
0,
96
Alb
erto
n 86
7 76
7 66
3 65
0 1,
3 7,
640
-0,1
30
0,94
Aer
opor
t/Spa
rtan
Ext
2
1.22
5 1.
200
1.05
0 98
8 1,
0 7,
825
-0,1
01
0,96
D
elvi
lle
- -
--
--
- -
Roo
deko
p 60
0 57
5 55
7 47
1 2,
0 7,
078
-0,0
96
0,83
W
adev
ille:
Ind
ustr
ial z
onin
g 71
0 69
0 63
3 56
0 2,
1 7,
290
-0,1
02
0,93
Rode’s Report 2018:3 98 Industria standl values
![Page 118: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/118.jpg)
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² V
acan
cy
gra
de
ab
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Rou
te 2
4/M
eado
wda
le
1.16
7 1.
167
1.00
0 1.
000
1,3
7,63
6 -0
,081
0,
84
Ger
mis
ton
S/I
ndus
trie
s E
500
500
425
400
2,0
6,98
8 -0
,108
0,
92
Drieh
oek/
Indu
stries
W
700
700
600
625
1,0
7,01
2 -0
,065
0,
70
Kni
ghts
48
3 48
3 41
7 38
3 2,
7 6,
965
-0,1
09
0,92
Spa
rtan
Pro
per
1.05
0 1.
050
900
890
1,8
7,56
2 -0
,085
0,
87
Foun
ders
Vie
w
1.27
5 1.
233
1.09
9 1.
017
1,2
7,87
2 -0
,102
0,
98
Long
mea
dow
1.
546
1.54
2 1.
421
1.38
7 1,
3 7,
720
-0,0
53
0,92
Po
mon
a/Kem
pton
Par
k 1.
075
1.05
6 1.
017
972
3,8
7,28
6 -0
,043
0,
97
Gos
fort
h Pa
rk
1.27
0 1.
250
1.23
0 1.
200
2,5
7,31
1 -0
,024
0,
98
East
Ran
d
98
4
96
7
88
9
84
4
1,7
Fa
r Ea
st R
and
Bok
sbur
g N
orth
& E
ast
771
775
750
725
2,0
6,85
2 -0
,028
0,
85
Ben
oni S
outh
73
0 71
8 74
0 73
0 1,
8 6,
555
0,00
5 0,
14
New
Era
/Vul
cani
a 45
0 45
0 45
0 45
0 3,
0 6,
109
0,00
0 -
Nuf
field
42
5 42
5 42
5 42
5 2,
5 6,
052
0,00
0 -
Fulc
rum
42
5 42
5 42
5 42
5 2,
5 6,
052
0,00
0 -
Ape
x 65
0 65
0 62
5 58
8 2,
5 6,
795
-0,0
44
0,86
La
bore
Bra
kpan
49
0 47
5 45
0 45
0 2,
5 6,
466
-0,0
40
0,92
M
oreh
ill E
xt 8
Ben
oni
650
650
650
600
1,0
6,69
9 -0
,030
0,
58
Far
East
Ran
d
57
4
57
1
56
4
54
9
2,2
P
reto
ria
Cha
rlot
te M
axek
e -
- -
- 1,
0-
- -
Pret
oria
Ind
ustr
ial T
owns
hip
650
525
400
325
1,5
8,55
0 -0
,300
1,
00
Koe
does
poor
t -
- -
- -
- -
- W
altloo
/Des
patc
h90
0 90
0 90
0 90
0 1,
0 6,
802
0,00
0 -
Silv
erto
n/Silv
erto
ndal
e 90
0 80
0 75
0 70
0 2,
0 7,
501
-0,1
04
0,97
Rode’s Report 2018:3 99 Industria standl values
![Page 119: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/119.jpg)
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² V
acan
cy
gra
de
ab
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Sam
cor
Park
90
0 90
0 90
0 90
0 1,
0 6,
802
0,00
0 -
Sun
derlan
d Rid
ge
750
750
650
650
4,5
7,15
3 -0
,075
0,
84
Her
man
stad
-
- -
- 1,
0-
- -
Kirkn
ey
300
200
- -
--
- -
Hen
nops
park
Ext
15
& E
xt 7
1.
500
1.50
0 1.
350
1.25
0 1,
5 7,
919
-0,0
84
0,92
G
atew
ay
1.00
0 1.
000
1.00
0 1.
000
1,0
6,90
8 0,
000
- Ly
ttle
ton
Man
or E
xt 4
/Ext
6
400
400
400
400
- 5,
991
0,00
0 -
Pret
oria
Nor
th
- -
- -
--
- -
Silv
erto
ndal
e X1
900
800
750
700
3,0
7,50
1 -0
,104
0,
97
Kle
rkso
ord
300
200
150
150
3,0
7,69
6 -0
,303
0,
87
Ros
slyn
45
0 45
0 45
0 40
0 5,
0 6,
436
-0,0
44
0,58
Rou
te 2
1 Cor
pora
te P
ark
- -
- -
--
- -
Cen
turion
1.30
0 1.
300
1.20
0 1.
000
2,0
7,97
3 -0
,110
0,
81
Iren
e (e
xcl.
Rou
te 2
1 Cor
p. P
ark)
1.
000
1.00
0 1.
000
1.00
0 1,
0 6,
908
0,00
0 -
Pre
tori
a 7
88
7
48
7
42
6
98
2
,1
Pol
okw
ane
Lebo
wak
gom
o -
- -
- -
- -
- Sup
erbi
a -
900
- -
3,0
- -
- In
dust
ria
- 86
2 50
0 -
1,5
- -
- La
dine
-
755
- -
2,0
- -
- Fu
tura
-
850
700
- 2,
0-
- -
Labo
ria
- -
280
- 3,
0-
- -
Mag
na V
ia
1.00
0 89
8 90
0 85
0 3,
3 7,
302
-0,0
61
0,81
Ses
hego
-
- -
- -
- -
- P
olok
wan
e -
- -
- -
Rode’s Report 2018:3 100 Industria standl values
![Page 120: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/120.jpg)
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² V
acan
cy
gra
de
ab
r²
1.0
00
2
.00
0
5.0
00
1
0.0
00
N
elsp
ruit
N
elsp
ruit E
ast
- -
--
--
- -
Nel
spru
it W
est
- -
--
--
- -
Roc
ky's
Drift
45
0 45
0 45
0 45
0 1,
0 6,
109
0,00
0 -
Riv
ersi
de P
ark
1.15
0 1.
150
1.15
0 1.
150
3,0
7,04
8 0,
000
- N
elsp
ruit
8
00
8
00
8
00
8
00
2
,0
Du
rban
Spr
ingf
ield
Par
k 1.
850
1.75
0 1.
650
1.62
5 1,
0 7,
911
-0,0
57
0,96
M
ayvi
lle
1.30
0 1.
300
1.30
0 1.
300
1,0
7,17
0 0,
000
- Ph
oeni
x 1.
400
1.40
0 1.
400
1.40
0 2,
0 7,
244
0,00
0 -
Nor
th C
oast
Rd/
Briar
dene
1.
925
1.80
0 1.
650
1.60
0 1,
0 8,
124
-0,0
82
0,98
Briar
dene
Ind
ustr
ial P
ark
1.95
0 1.
825
1.67
5 1.
625
1,0
8,12
9 -0
,081
0,
98
Um
geni
Rd/
Sta
mfo
rd H
ill
1.70
0 1.
650
1.65
0 1.
600
1,0
7,59
1 -0
,023
0,
86
Um
bilo
/Syd
ney
Rd/
Gal
e St
1.60
0 1.
600
1.55
0 1.
450
1,0
7,68
1 -0
,042
0,
82
Jaco
bs
1.72
5 1.
725
1.67
5 1.
575
1,0
7,73
3 -0
,038
0,
82
Mob
eni
1.80
0 1.
800
1.75
0 1.
650
1,0
7,76
4 -0
,037
0,
82
Pros
pect
on
1.90
0 1.
900
1.85
0 1.
667
1,5
7,93
8 -0
,053
0,
74
Itha
la I
ndus
tria
l Est
ate
- -
- -
- -
- -
Pine
tow
n Cen
tral
1.
825
1.80
0 1.
700
1.65
0 2,
0 7,
836
-0,0
46
0,97
N
ew G
erm
any
1.82
5 1.
800
1.70
0 1.
650
1,0
7,83
6 -0
,046
0,
97
Kw
a D
ebek
a In
dust
rial
Par
k -
- -
- -
- -
- Is
ipin
go
1.45
0 1.
450
1.36
7 1.
400
3,0
7,43
3 -0
,022
0,
59
Ros
sbur
gh/S
outh
Coa
st R
d
1.50
0 1.
500
1.50
0 1.
450
1,0
7,40
7 -0
,013
0,
58
Edw
in S
wal
es D
rive
1.
550
1.55
0 1.
550
1.50
0 1,
0 7,
437
-0,0
12
0,58
G
len
Ani
l 2.
000
2.00
0 2.
000
1.90
0 2,
0 7,
743
-0,0
19
0,58
Brick
field
Rd
1.50
0 1.
500
1.50
0 1.
400
1,0
7,50
4 -0
,026
0,
58
Rode’s Report 2018:3 101 Industria standl values
![Page 121: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/121.jpg)
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² V
acan
cy
gra
de
ab
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Ver
ulam
40
0 40
0 40
0 40
0 3,
0 5,
991
0,00
0 -
Can
elan
ds
400
400
400
400
4,0
5,99
1 0,
000
- To
ngaa
t 1.
550
1.50
0 1.
500
1.40
0 4,
0 7,
612
-0,0
38
0,81
N
ew W
estm
ead/
Mah
ogan
y 2.
000
1.95
0 1.
950
1.87
5 1,
0 7,
767
-0,0
24
0,84
W
estm
ead
2.00
0 1.
950
1.95
0 1.
875
1,0
7,76
7 -0
,024
0,
84
Mar
iann
Par
k/Sou
thm
ead
1.20
0 1.
200
1.20
0 1.
200
3,0
7,09
0 0,
000
- M
axm
ead
2.00
0 2.
000
2.00
0 2.
000
1,0
7,60
1 0,
000
- Rin
groa
d In
dust
rial
Par
k -
- -
- -
- -
- Avo
ca/R
ed H
ill/N
orth
gate
1.
650
1.65
0 1.
650
1.65
0 -
7,40
9 0,
000
- Fa
lcon
Par
k -
- -
- -
- -
- Riv
erho
rse
Val
ley
Bus
ines
s Es
tate
2.
800
2.80
0 2.
650
2.65
0 1,
0 8,
142
-0,0
29
0,84
M
ount
Edg
ecom
be
1.40
0 1.
400
1.40
0 1.
400
- 7,
244
0,00
0 -
Um
bogi
ntw
ini/
Sou
thga
te-
- -
- -
- -
- Sou
thga
te I
ndus
tria
l Par
k 1.
200
1.20
0 1.
200
1.20
0 -
7,09
0 0,
000
- H
ibis
cus
Indu
strial
Par
k -
- -
- -
- -
- U
mge
ni P
ark
2.00
0 2.
000
2.00
0 2.
000
- 7,
601
0,00
0 -
Ham
mer
sdal
e1.
000
1.00
0 1.
000
700
3,7
7,89
6 -0
,134
0,
58
Cat
o Rid
ge
1.00
0 1.
000
1.00
0 86
7 3,
7 7,
304
-0,0
54
0,58
Bal
lito
- -
- 85
0 2,
0-
- -
Dub
e Tr
adep
ort
- -
--
--
- -
Du
rban
1
.59
5
1.5
77
1
.54
2
1.4
68
1
,7
Lad
ysm
ith
Ez
akhe
ni/P
iete
rs-
- -
- -
- -
- D
ansk
raal
-
- 10
0 80
2,
0-
- -
Nam
biti
- -
100
80
2,0
- -
- Col
enso
- -
--
--
- -
Lad
ysm
ith
-
- 1
00
8
0
2,0
Rode’s Report 2018:3 102 Industria standl values
![Page 122: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/122.jpg)
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² V
acan
cy
gra
de
ab
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Cap
e P
enin
sula
Vik
ing
Plac
e -
- -
- 1,
0-
- -
Glo
sder
ry-
- -
- -
- -
- Pa
arde
n Ei
land
/Met
ro
- -
- -
1,0
- -
- M
onta
gue
Gar
dens
2.
450
2.40
0 2.
133
2.10
0 1,
0 8,
333
-0,0
75
0,93
M
arco
ni B
eam
2.
450
2.40
0 2.
100
2.00
0 1,
0 8,
483
-0,0
96
0,95
Kill
arne
y G
arde
ns
1.83
8 1.
813
1.52
5 1.
400
1,3
8,42
7 -0
,128
0,
94
Rac
ing
Park
1.
050
975
860
800
5,0
7,79
3 -0
,121
1,
00
Atlan
tis
- -
- -
--
- -
Woo
dsto
ck/S
alt
Riv
er/O
bser
vato
ry
- -
- -
--
- -
Ath
lone
1 &
2
1.30
0 1.
300
1.00
0 1.
000
1,0
8,14
7 -0
,138
0,
84
Lans
dow
ne N
eris
sa
1.20
0 1.
200
- -
1,0
7,09
0 0,
000
- San
d In
dust
ria
- -
- -
--
- -
Ott
ery
Hill
star
1.
000
1.00
0 80
0 80
0 1,
0 7,
739
-0,1
17
0,84
O
tter
y Sun
set
- -
- -
--
- -
Die
p Riv
er
- -
- -
--
- -
Elfin
dale
- -
- -
--
- -
Mon
woo
d/Ph
ilipp
i1.
200
1.20
0 -
- 5,
0 7,
090
0,00
0 -
Ret
reat
/Ste
enbe
rg-
- -
- -
- -
- Cap
rico
rn P
ark
1.75
0 1.
750
1.75
0 1.
750
1,0
7,46
7 0,
000
- M
aitlan
d2.
000
- -
- 1,
5-
- -
Nda
beni
2.50
0 2.
500
2.50
0 2.
500
1,0
7,82
4 0,
000
- Ep
ping
1 &
2
2.00
0 2.
000
1.95
0 1.
867
1,0
7,81
6 -0
,030
0,
85
WP
Park
2.
200
- 2.
000
2.00
0 1,
0-
- -
Rode’s Report 2018:3 103 Industria standl values
![Page 123: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/123.jpg)
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² V
acan
cy
gra
de
ab
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Elsi
es R
iver
(ex
cl.
Cen
tral
Par
k)
1.25
0 1.
250
1.13
3 1.
133
1,3
7,49
6 -0
,051
0,
84
Paro
w B
eaco
nval
e 1.
467
1.45
0 1.
313
1.30
0 1,
8 7,
714
-0,0
60
0,91
Ty
gerb
erg
Bus
ines
s Pa
rk
1.60
0 1.
400
1.25
0 1.
200
2,3
8,21
6 -0
,125
0,
96
Paro
w I
ndus
tria
1.
567
1.56
7 1.
550
1.53
8 1,
8 7,
419
-0,0
09
0,92
Pa
row
Eas
t 1.
800
1.60
0 1.
400
1.30
0 1,
5 8,
466
-0,1
42
0,99
Bel
lvill
e O
akda
le
- -
- -
--
- -
Bel
lvill
e Stikl
and/
Kay
mor
1.
950
1.90
0 1.
900
1.85
0 2,
8 7,
709
-0,0
20
0,86
Bel
lvill
e Tr
iang
le
1.43
8 1.
400
1.33
3 1.
250
1,5
7,69
1 -0
,060
0,
97
Bel
lvill
e Sou
th/S
acks
Circl
e 1.
500
1.46
7 1.
400
1.30
0 2,
3 7,
743
-0,0
61
0,94
Kra
aifo
ntei
n1.
270
1.27
0 1.
100
1.07
5 1,
7 7,
746
-0,0
84
0,89
Bra
cken
fell
Indu
stria
1.77
5 1.
675
1.55
0 1.
533
1,7
7,93
2 -0
,066
0,
95
Ever
ite
Bra
cken
fell
1.90
0 1.
867
1.66
7 1.
600
1,0
8,12
5 -0
,081
0,
95
Kui
ls R
iver
1.
250
1.20
0 1.
100
1.06
7 1,
5 7,
633
-0,0
72
0,98
Bla
ckhe
ath
1.03
3 90
0 87
5 85
0 2,
0 7,
440
-0,0
77
0,82
Sax
enbu
rg I
ndus
tria
l Par
k 1.
617
1.55
0 1.
450
1.30
0 2,
3 8,
035
-0,0
92
0,95
O
kava
ngo
2.06
7 2.
067
1.83
3 1.
683
1,5
8,31
6 -0
,095
0,
92
Bra
cken
gate
2.35
0 2.
317
2.11
7 2.
050
1,5
8,22
0 -0
,065
0,
95
Paar
l 1.
100
1.00
0 80
0 60
0 -
8,84
8 -0
,261
0,
96
Wel
lingt
on
900
850
700
500
- 8,
588
-0,2
49
0,90
Con
term
ansk
loof
2.
350
2.00
0 1.
500
1.50
0 2,
0 9,
200
-0,2
11
0,92
Riv
erga
te2.
000
2.00
0 1.
750
1.50
0 2,
0 8,
525
-0,1
28
0,89
Airpo
rt I
nd (
nort
h of
sew
erag
e fa
rm)
2.00
0 1.
900
1.70
0 1.
600
1,0
8,30
0 -0
,100
0,
99
Airpo
rt I
nd (
wes
t of
Bor
cher
ds Q
uarr
y)
2.20
0 1.
950
1.80
0 1.
700
1,0
8,42
7 -0
,109
0,
97
Airpo
rt I
nd (
east
of
Bor
cher
ds Q
uarr
y)
2.40
0 2.
100
1.90
0 1.
750
1,5
8,68
7 -0
,133
0,
98
Dur
banv
ille
Indu
strial
Par
k 1.
450
1.45
0 1.
350
1.20
0 -
7,87
2 -0
,082
0,
85
Nor
thga
te I
ndus
tria
l Par
k -
- -
- -
- -
- C
ape
Pen
insu
la
1.8
11
1
.77
3
1.6
60
1
.59
0
1,7
Rode’s Report 2018:3 104 Industria standl values
![Page 124: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/124.jpg)
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² V
acan
cy
gra
de
ab
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Hel
der
ber
g
The
Inte
rcha
nge
1.80
0 -
- -
- -
- -
Hel
derb
erg
Indu
strial
Par
k 1.
200
- -
- -
- -
- G
ants
1.
500
- -
- -
- -
- H
alf
Way
-
- -
- -
- -
- Som
erse
t Bus
ines
s Pa
rk
1.60
0 -
- -
- -
- -
Geo
rges
Par
k/O
nver
wac
ht
1.20
0 -
- -
- -
- -
Man
sfie
ld
1.00
0 -
- -
- -
- -
Firg
rove
-
- -
- -
- -
- Str
and
Hal
t -
- -
- -
- -
- Bro
adla
nds
-
- -
- -
- -
- H
eld
erb
erg
-
- -
- -
Por
t El
izab
eth
D
eal P
arty
65
0 65
0 65
0 65
0 -
- -
- N
orth
End
80
0 80
0 80
0 70
0 1,
5 7,
055
-0,0
50
0,58
Kor
sten
/Nea
ve/S
idw
ell/
Syd
enha
m
600
600
600
500
- 6,
902
-0,0
68
0,58
Sou
th E
nd W
alm
er
- -
- -
--
- -
Uiten
hage
: Vol
ksw
agen
are
a/N
MBLP
30
0 30
0 27
5 32
5 3,
0 5,
565
0,01
7 0,
06
Uiten
hage
: H
ella
/Kru
isrivi
er
150
150
175
100
3,0
5,98
8 -0
,129
0,
30
Str
uand
ale
650
650
500
500
5,0
7,45
4 -0
,138
0,
84
Mar
kman
Tow
nshi
p 25
0 25
0 25
0 25
0 4,
5 5,
521
0,00
0 -
Pers
ever
ance
37
5 37
5 35
0 35
0 3,
0 6,
184
-0,0
36
0,84
W
alm
er87
5 87
5 80
0 80
0 3,
0 7,
108
-0,0
47
0,84
G
reen
bush
es
275
275
250
275
5,5
5,70
8 -0
,014
0,
09
Fairvi
ew
1.15
0 97
5 97
5 95
0 3,
8 7,
494
-0,0
72
0,68
P
ort
Eliz
abet
h
55
2
53
6
51
1
49
1
3,6
Rode’s Report 2018:3 105 Industria standl values
![Page 125: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/125.jpg)
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² V
acan
cy
gra
de
ab
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
East
Lon
don
Arc
adia
1.
200
1.00
0 75
0-
--
- -
Gat
ely/
Woo
dbro
ok
725
600
475
375
2,0
8,54
1 -0
,282
1,
00
Wils
onia
20
0 20
0 15
0 10
0 -
7,49
3 -0
,303
0,
87
Bra
elyn
60
0 50
0 35
0-
--
- -
Nor
then
d 60
0 50
0 35
0-
--
- -
Chi
selh
urst
75
0 65
0 50
0 35
0 -
8,91
1 -0
,325
0,
96
Mei
sies
Hal
t 67
5 55
0 60
0 50
0 -
7,16
1 -0
,100
0,
62
Bea
con
Bay
Ind
ustr
ial
900
850
600
450
- 9,
027
-0,3
12
0,95
ID
Z
- -
- 27
0 -
- -
- W
esba
nk I
ndus
tria
l Are
a 25
0 20
0 -
- -
7,74
5 -0
,322
1,
00
East
Lon
don
6
56
5
61
4
53
3
41
2
,0
Blo
emfo
nte
in
Hilt
on-
- -
- -
- -
- Ea
st E
nd
850
- -
650
--
- -
Har
vey
Roa
d -
- -
- -
- -
- O
ld I
ndus
tria
l -
- -
- -
- -
- H
amilt
on:
Mill
St
- -
--
--
- -
Ham
ilton
: G
Lub
be S
t -
- -
- -
- -
- Es
toire
- -
700
650
--
- -
Blo
emfo
nte
in
- -
- -
- G
eorg
e G
eorg
e Cen
tral
42
3 39
2 35
7 29
0 1,
0 7,
147
-0,1
56
0,93
Ta
msu
i Ind
ustr
ia
450
418
383
300
3,5
7,28
0 -0
,165
0,
90
Paca
ltsd
orp
Indu
stria
433
407
370
290
3,5
7,24
3 -0
,165
0,
89
Geo
rge
43
6
40
6
37
0
29
3
2,7
Rode’s Report 2018:3 106 Industria standl values
![Page 126: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/126.jpg)
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² V
acan
cy
gra
de
ab
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Pie
term
arit
zbu
rg
Will
owto
n -
- 62
0 58
0 2,
0-
- -
Mko
mde
ni
- 45
0 40
0 40
0 3,
0-
- -
Cam
ps D
rift
-
450
380
360
2,0
- -
- Pi
eter
mar
itzb
urg
Cen
tral
-
- -
- -
- -
- P
iete
rmar
itzb
urg
-
45
0
46
7
44
7
2,3
W
ind
hoe
k N
orth
3.
200
3.20
0 3.
200
2.50
0 1,
0 8,
755
-0,0
93
0,58
La
fren
z
2.20
0 2.
200
2.20
0 1.
500
4,0
8,75
8 -0
,144
0,
58
Sou
th
3.50
0 3.
500
3.50
0 2.
800
1,0
8,77
9 -0
,084
0,
58
Pros
perita
3.00
0 3.
000
3.00
0 2.
500
1,0
8,51
2 -0
,068
0,
58
Win
dh
oek
2.9
75
2
.97
5
2.9
75
2
.32
5
1,8
Rode’s Report 2018:3 107 Industria standl values
![Page 127: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/127.jpg)
Tab
le 8
.3
Sta
nd
ard
dev
iati
on
fro
m m
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
01
8:3
(R
/m²
excl
. V
AT)
Are
a si
ze in
m²
Con
trib
uto
rs
1.0
00
2
.00
0
5.0
00
1
0.0
00
Cen
tral
Wit
wat
ersr
and
Cam
brid
ge P
ark
150,
00
150,
00
250,
00
250,
00
AP,
FWR
Wyn
berg
Pro
per
50,0
0 50
,00
50,0
0 -
BM
,FW
R,Q
U
Str
ijdom
Par
k 27
3,86
23
8,48
31
1,25
31
4,25
AP,
BM
,FW
R,G
B,Q
U,W
HF
Kya
San
d 31
1,56
23
5,59
25
7,65
28
8,04
AP,
BM
,FW
R,G
B,R
A,W
HF
Cla
yvill
e/O
lifan
tsfo
ntei
n50
,00
0,00
93
,54
84,9
8 AP,
BM
,FW
R,G
B,M
R
Chl
oork
op
70,7
1 84
,98
75,0
0 35
,00
AP,
BM
,FW
R,P
PR
Am
alga
m-
--
- AP,
BM
,GB
Cro
wn
Min
es
141,
42
141,
42
141,
42
163,
30
AP,
BM
,CR,Q
U
Indu
stria
--
--
AP,
BM
Boo
ysen
s/Boo
ysen
s Res
erve
/Oph
irto
n 25
,00
0,00
11
2,42
10
8,01
AP,
BM
,QU
Vill
age
Mai
n/Vill
age
Dee
p/N
ew C
entr
e -
- -
- AP
Ben
rose
16
3,30
16
3,72
16
4,99
16
9,97
AP,
BM
,GB,Q
U
Ste
eled
ale/
Elec
tron
/Tul
isa
Park
17
5,00
17
5,00
17
5,00
17
5,00
AP,
BM
,GB
Aer
oton
54
,49
21,6
5 73
,95
58,7
4 AP,
BM
,CR,G
B,Q
U
Dev
land
/Nan
cefie
ld20
0,00
20
0,00
12
5,00
25
,00
AP,
QU
Cle
vela
nd/H
erio
tdal
e12
4,37
13
4,63
15
0,00
15
5,62
AP,
BM
,GB,P
PR,Q
U
New
land
s/M
artind
ale
--
--
AP
Kew
/Wyn
berg
Eas
t-
--
-Bra
mle
y Vie
w/L
omba
rdy
Wes
t -
- -
- AP
Mar
lbor
o 25
0,00
25
0,00
25
0,00
25
0,00
AP,
QU
H
alfw
ay H
ouse
: hi
-tec
h st
rip
124,
72
124,
72
205,
48
205,
48
AP,
AW
,BM
,FW
R,G
B
Hal
fway
Hou
se:
Ric
hard
s D
rive
11
1,80
11
3,88
21
6,51
22
4,65
AP,
FWR,G
B,Q
U
Com
mer
cia
47,1
4 47
,14
73,9
5 89
,44
AP,
AW
,CR,F
WR,Q
U
Kra
mer
ville
/Eas
tgat
e Ex
t 12
& E
xt 1
3 58
8,78
58
8,78
61
0,33
50
0,00
AP,
BM
,FW
R,Q
U
Linb
ro P
ark
227,
76
217,
94
224,
50
82,9
2 AP,
BM
,FW
R,G
B,P
PR
Wes
co P
ark/
East
gate
Ext
3,
Ext
11,
Ext
6,
Ext8
/Mal
boro
Nor
th (
New
) -
--
- BM
Rode’s Report 2018:3 108 Industria standl values
![Page 128: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/128.jpg)
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
18
:3
(R/m
² ex
cl.
VA
T)
Are
a si
ze i n
m²
Con
trib
uto
rs
1.0
00
2
.00
0
5.0
00
1
0.0
00
City
Dee
p 13
4,63
18
8,75
18
8,75
19
8,04
AP,
BM
,GB,P
PR,Q
U
Nor
th R
idin
g 0,
00
0,00
0,
00
0,00
AP,
FWR,G
B
Sam
rand
Cen
turion
-
- 25
,00
25,0
0 BM
,CR,F
WR
Bar
bequ
e D
owns
23
5,70
23
5,70
18
8,56
25
8,60
AP,
AW
,FW
R,G
B
Sel
by E
xt 1
2/13
/15/
19/2
0/24
/City
Wes
t 70
,71
70,7
1 70
,71
65,6
2 AP,
BM
,GB,Q
U
Sel
by E
xt 5
/10/
14/1
8 0,
00
0,00
0,
00
12,5
0 AP,
QU
,WH
F Sel
by E
xt 1
1 84
,98
84,9
8 70
,71
70,7
1 AP,
GB,Q
U
Sel
by E
xt 3
/4/6
84
,98
84,9
8 70
,71
62,3
6 AP,
GB,Q
U
Den
ver
(Old
) 23
,57
108,
01
108,
01
108,
01
AP,
BM
,GB,Q
U
Den
ver
(New
) 14
5,22
14
5,22
14
3,37
14
2,89
AP,
GB,Q
U
Kya
lam
i Bus
ines
s Pa
rk
141,
42
141,
42
188,
56
188,
56
AP,
BM
,GB,Q
U,W
HF
Reu
ven
--
--
Sel
by (
Old
)/Sel
by E
xt2/
Park
Cen
tral
-
- -
- BM
,QU
Rob
erts
ham
--
--
Ford
sbur
g/M
ayfa
ir-
--
-W
ater
fall
--
--
GB
Wes
t R
and
Le
a G
len
- -
62,3
6 62
,36
BM
,FW
R,G
B
Hon
eyde
w E
xt 1
9, 2
0, 2
1 &
22
75,0
0 60
,00
192,
93
245,
90
AP,
BM
,FW
R,G
B,W
HF
Sto
rmill
61,0
1 70
,42
137,
20
71,4
6 AP,
BM
,CR,F
WR,G
B,Q
U,R
A,W
HF
Cha
mdo
r 75
,00
75,0
0 50
,00
25,0
0 AP,
BM
,GB
Fact
oria
--
--
AP
Kru
gers
dorp
: D
elpo
rton
--
--
GB
Ran
dfon
tein
: Aur
eus
50,0
0 50
,00
12,5
0 62
,50
AP,
QU
Bol
toni
a-
--
- AP
Roo
depo
ort:
Tec
hnik
on/M
anuf
acta
--
--
AP,
GB
Indu
stria
Nor
th
- -
175,
00
150,
00
AP,
BM
,QU
Rob
ertv
ille
108,
25
108,
25
122,
47
79,0
6 AP,
BM
,FW
R,Q
U,W
HF
Lase
rpar
k50
,00
50,0
0 19
2,93
0,
00
AP,
BM
,FW
R,G
B
Rode’s Report 2018:3 109 Industria standl values
![Page 129: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/129.jpg)
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
18
:3
(R/m
² ex
cl.
VA
T)
Are
a si
ze i n
m²
Con
trib
uto
rs
1.0
00
2
.00
0
5.0
00
1
0.0
00
East
Ran
d
Elan
dsfo
ntei
n 74
,83
91,6
5 95
,74
107,
70
BM
,BR,F
WR,G
B,M
E,PP
R
Tunn
ey/G
reen
hills
154,
99
146,
71
167,
82
192,
46
BM
,BR,F
WR,G
B,M
E,M
R,O
S,P
PR,Q
U,
WH
FH
envi
lle
111,
80
111,
80
149,
67
206,
16
BM
,BR,F
WR,M
E,PP
R
Mea
dow
broo
k/W
ilbar
t 12
2,47
86
,60
43,3
0 64
,95
BM
,BR,F
WR,G
B,M
E,PP
R
Sun
nyro
ck
122,
47
82,9
2 43
,30
89,2
7 BR,F
WR,G
B,M
E Rus
tivi
a/Act
ivia
Par
k 97
,98
97,9
8 12
9,10
74
,83
BM
,BR,F
WR,M
E,PP
R,Q
U
East
leig
h12
6,49
13
2,66
91
,65
80,0
0 AP,
BM
,BR,M
E,PP
R,Q
U
Seb
enza
Ext
14
167,
50
149,
07
147,
37
63,2
5 BM
,BR,G
B,M
E,M
R,O
S,P
PR,Q
U
Spa
rtan
Ext
16
(Seb
enza
Lin
k) +
Ext
1,
3,7
146,
29
156,
84
166,
60
307,
52
AP,
BM
,BR,M
E,O
S,P
PR,Q
U
Isan
do12
0,00
12
0,00
76
,38
70,0
0 BM
,BR,F
WR,M
E,PP
R,Q
UIs
ando
3
104,
40
104,
40
67,8
2 74
,83
AP,
BR,F
WR,M
E,Q
U
Jet
Park
16
7,82
16
7,82
18
4,98
17
0,69
BM
,BR,F
WR,G
B,M
E,M
R,P
PR,Q
U,
W
HF,
ZZ
Alrod
e &
Xs
169,
97
169,
97
115,
76
94,4
4 AP,
BM
,BR,F
WR,G
B
Alrod
e Sou
th
188,
56
181,
57
139,
28
129,
30
AP,
BM
,BR,F
WR,G
B
Alb
erto
n 18
8,56
16
9,97
14
3,07
10
8,01
AP,
BM
,BR,F
WR,G
B
Aer
opor
t/Spa
rtan
Ext
2
43,3
0 70
,71
50,0
0 73
,95
AP,
BM
,BR,F
WR,M
E D
elvi
lle-
--
-Roo
deko
p 16
3,30
16
2,66
12
9,36
68
,34
AP,
BM
,BR,F
WR,G
B,P
PR,Q
U
Wad
evill
e: I
ndus
tria
l zon
ing
135,
65
128,
06
79,9
3 80
,00
AP,
BM
,BR,F
WR,G
B,P
PR
Rou
te 2
4/M
eado
wda
le
124,
72
124,
72
141,
42
81,6
5 BM
,BR,F
WR,G
B
Ger
mis
ton
S/I
ndus
trie
s E
- -
25,0
0 -
BM
,PPR
D
rieh
oek/
Indu
stries
W
100,
00
100,
00
70,7
1 75
,00
BM
,GB,P
PR
Kni
ghts
102,
74
102,
74
84,9
8 84
,98
AP,
BM
,MR,P
PR,Q
USpa
rtan
Pro
per
141,
42
141,
42
100,
00
66,3
3 AP,
BM
,BR,F
WR,M
E,PP
R
Foun
ders
Vie
w
270,
42
205,
48
171,
51
121,
34
AP,
BM
,BR,F
WR,G
B,M
E,PP
R,R
A
Rode’s Report 2018:3 110 Industria standl values
![Page 130: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/130.jpg)
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
18
:3
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Con
tri b
uto
rs
1.0
00
2
.00
0
5.0
00
1
0.0
00
Lo
ngm
eado
w
132,
62
136,
68
176,
99
205,
07
BM
,BR,F
WR,G
B,M
E,PP
R,Q
U
Pom
ona/
Kem
pton
Par
k 12
2,47
11
0,22
88
,19
105,
70
AP,
BM
,BR,F
WR,G
B,M
E,M
R,
PP
R,Q
U,W
HF
Gos
fort
h Pa
rk
74,8
3 10
0,00
13
2,66
10
4,88
AP,
FWR,G
B,M
E,PP
R
Far
East
Ran
d
Bok
sbur
g N
orth
& E
ast
67,5
6 75
,00
63,2
5 75
,00
AP,
BM
,FW
R,G
B,M
R,R
A,W
HF
Ben
oni S
outh
74
,83
73,6
1 80
,00
87,1
8 AP,
BM
,FW
R,G
B,Q
U,W
HF
New
Era
/Vul
cani
a 50
,00
50,0
0 40
,82
50,0
0 AP,
BM
,GB
Nuf
field
25,0
0 25
,00
25,0
0 25
,00
AP,
GB
Fulc
rum
25
,00
25,0
0 25
,00
25,0
0 AP,
GB
Ape
x 70
,71
70,7
1 90
,14
54,4
9 AP,
GB,M
R,Q
U
Labo
re B
rakp
an
10,0
0 25
,00
50,0
0 50
,00
GB,Q
U
Mor
ehill
Ext
8 B
enon
i 10
0,00
10
0,00
10
0,00
50
,00
AP,
GB
Pre
tori
a Cha
rlot
te M
axek
e -
- -
- AP
Pret
oria
Ind
ustr
ial T
owns
hip
350,
00
325,
00
250,
00
175,
00
AP,
HN
Koe
does
poor
t-
- -
-W
altloo
/Dis
patc
h-
- -
-AP
Silv
erto
n/Silv
erto
ndal
e-
--
-AP
Sam
cor
Park
-
- -
- AP
Sun
derlan
d Rid
ge
100,
00
100,
00
0,00
0,
00
AP,
HN
H
erm
anst
ad-
- -
-Kirkn
ey-
- -
-AP
Hen
nops
park
Ext
15
& E
xt 7
0,
00
0,00
15
0,00
25
0,00
AP,
HN
G
atew
ay-
- -
-AP
Lytt
leto
n M
anor
Ext
4/E
xt 6
-
- -
- AP
Pret
oria
Nor
th
- -
- -
Silv
erto
ndal
e X1
- -
- -
AP
Kle
rkso
ord
- -
--
AP
Ros
slyn
- -
--
AP
Rode’s Report 2018:3 111 Industria standl values
![Page 131: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/131.jpg)
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
18
:3
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Con
tri b
uto
rs
1.0
00
2
.00
0
5.0
00
1
0.0
00
Rou
te 2
1 Cor
pora
te P
ark
- -
- -
MAS
Cen
turion
--
--
HN
Iren
e (e
xcl.
Rou
te 2
1 Cor
p. P
ark)
-
- -
- AP
Pol
okw
ane
Lebo
wak
gom
o-
--
-Sup
erbi
a-
--
- M
OIn
dust
ria
- 55
,73
- -
MO
,NET
,TG
Ladi
ne-
95,0
0 -
-M
O,T
GFu
tura
--
--
MO
Labo
ria
--
--
TGM
agna
Via
-
31,4
8 -
- ES
,MO
,NET
,TG
Ses
hego
--
--
Nel
spru
it
Nel
spru
it E
ast
--
--
Nel
spru
it W
est
--
--
Roc
ky's
Drift
0,
00
0,00
0,
00
0,00
H
H,K
EL,P
M,R
Z
Riv
ersi
de P
ark
0,00
0,
00
0,00
0,
00
HH
,KEL
,PM
,RZ
Du
rban
Spr
ingf
ield
Par
k 35
0,00
25
0,00
15
0,00
12
5,00
M
L,PC
,SRE
May
ville
--
--
ML,
SRE
Phoe
nix
--
--
ML,
PC,S
RE
Nor
th C
oast
Rd/
Briar
dene
32
5,00
20
0,00
50
,00
0,00
M
L,PC
,SRE
Briar
dene
Ind
ustr
ial P
ark
300,
00
175,
00
25,0
0 25
,00
ML,
PC,S
RE
Um
geni
Rd/
Sta
mfo
rd H
ill
100,
00
50,0
0 50
,00
0,00
M
L,SRE
Um
bilo
/Syd
ney
Rd/
Gal
e St
200,
00
200,
00
150,
00
50,0
0 M
L,SRE
Jaco
bs
75,0
0 75
,00
25,0
0 75
,00
ML,
PC,S
RE
Mob
eni
0,00
0,
00
50,0
0 15
0,00
ML,
SRE
Pros
pect
on
100,
00
100,
00
150,
00
235,
70
ML,
PC,S
RE
Rode’s Report 2018:3 112 Industria standl values
![Page 132: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/132.jpg)
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
18
:3
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Con
tri b
uto
rs
1.0
00
2
.00
0
5.0
00
1
0.0
00
It
hala
Ind
ustr
ial E
stat
e -
- -
-
Pine
tow
n Cen
tral
25
,00
0,00
14
1,42
12
2,47
M
L,PC
,SRE
New
Ger
man
y 25
,00
0,00
14
1,42
12
2,47
M
L,PC
,SRE
Kw
a D
ebek
a In
dust
rial
Par
k -
- -
-
Isip
ingo
150,
00
150,
00
169,
97
100,
00
ML,
PC,S
RE
Ros
sbur
gh/S
outh
Coa
st R
d 10
0,00
10
0,00
10
0,00
50
,00
ML,
SRE
Edw
in S
wal
es D
rive
50
,00
50,0
0 50
,00
0,00
M
L,SRE
Gle
n Ani
l 20
0,00
20
0,00
20
0,00
10
0,00
M
L,PC
,SRE
Brick
field
Rd
300,
00
300,
00
300,
00
200,
00
ML,
SRE
Ver
ulam
--
--
ML,
SRE
Can
elan
ds-
--
- M
L,PC
,SRE
Tong
aat
--
--
SRE
New
Wes
tmea
d/M
ahog
any
0,00
50
,00
50,0
0 12
5,00
M
L,PC
,SRE
Wes
tmea
d 0,
00
50,0
0 50
,00
125,
00
ML,
PC,S
RE
Mar
iann
Par
k/Sou
thm
ead
--
--
ML,
PCM
axm
ead
--
--
ML,
PCRin
groa
d In
dust
rial
Par
k -
- -
-
Avo
ca/R
ed H
ill/N
orth
gate
--
--
ML
Falc
on P
ark
--
--
Riv
erho
rse
Val
ley
Bus
ines
s Es
tate
-
- 15
0,00
15
0,00
M
L,PC
M
ount
Edg
ecom
be-
--
- M
L,PC
Um
bogi
ntw
ini/
Sou
thga
te-
--
-Sou
thga
te I
ndus
tria
l Par
k -
- -
- M
L H
ibis
cus
Indu
strial
Par
k -
- -
-
Um
geni
Par
k-
--
- M
LH
amm
ersd
ale
- -
0,00
21
6,02
ML,
PC,Q
PCat
o Rid
ge
- -
0,00
18
8,56
M
L,PC
,QP
Bal
lito
--
--
PCD
ube
Trad
epor
t-
--
-
Rode’s Report 2018:3 113 Industria standl values
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Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
18
:3
(R/m
² ex
cl.
VA
T)
Are
a si
ze i n
m²
Con
trib
uto
rs
1.0
00
2
.00
0
5.0
00
1
0.0
00
Lad
ysm
ith
Ez
akhe
ni/P
iete
rs
--
--
Dan
skra
al
--
--
DE
Nam
biti
--
--
DE
Col
enso
-
--
-
Cap
e P
enin
sula
Vik
ing
Plac
e -
- -
- AP
Glo
sder
ry-
- -
-Pa
arde
n Ei
land
/Met
ro
- -
- -
AP,
DN
M
onta
gue
Gar
dens
50
,00
141,
42
94,2
8 81
,65
AP,
AX,C
RE,
DN
,LF
Mar
coni
Bea
m
50,0
0 10
0,00
10
0,00
0,
00
AX,L
F Kill
arne
y G
arde
ns
302,
85
296,
60
275,
00
200,
00
AP,
AX,D
N,L
F Rac
ing
Park
10
8,01
25
,00
146,
29
0,00
AP,
AX,C
RE,
DN
,LF
Atlan
tis
- -
--
Woo
dsto
ck/S
alt
Riv
er/O
bser
vato
ry
- -
- -
Ath
lone
1 &
2
- -
- -
AP
Land
sdow
ne N
eris
sa
- -
- -
AP
San
d In
dust
ria
- -
- -
O
tter
y H
illst
ar
- -
- -
AP
Ott
ery
Sun
set
- -
- -
D
iep
Riv
er
- -
- -
El
finda
le-
- -
-M
onw
ood/
Phili
ppi
- -
--
AP
Ret
reat
/Ste
enbe
rg-
- -
-Cap
rico
rn P
ark
- -
- -
IKP
Rode’s Report 2018:3 114 Industria standl values
![Page 134: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/134.jpg)
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
18
:3
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Con
tri b
uto
rs
1.0
00
2
.00
0
5.0
00
1
0.0
00
M
aitlan
d-
- -
-AN
,AP
Nda
beni
- -
--
AP
Eppi
ng 1
& 2
-
- 50
,00
94,2
8 AN
,AP,
LF
WP
Park
-
- -
- AN
,AP
Elsi
es R
iver
(ex
cl.
Cen
tral
Par
k)
- -
262,
47
262,
47
AN
,AP,
DD
Pa
row
Bea
conv
ale
249,
44
227,
30
240,
77
200,
00
AN
,AP,
DD
,DN
Ty
gerb
erg
Bus
ines
s Pa
rk
200,
00
200,
00
250,
00
200,
00
AP,
DD
,DN
Pa
row
Ind
ustr
ia
329,
98
329,
98
384,
06
389,
51
AN
,AP,
DD
,DN
Pa
row
Eas
t -
- -
- AP,
DD
Bel
lvill
e O
akda
le
- -
- -
Bel
lvill
e Stikl
and/
Kay
mor
16
5,83
23
6,64
10
0,00
77
,46
AN
,AP,
DD
,DN
,LF,
NE,
WD
Bel
lvill
e Tr
iang
le
272,
43
254,
95
124,
72
204,
12
AN
,DD
,DN
,LF
Bel
lvill
e Sou
th/S
acks
Circl
e 0,
00
209,
50
203,
10
212,
13
AN
,AP,
DD
,LF
Kra
aifo
ntei
n67
,82
67,8
2 89
,44
82,9
2 AN
,DD
,DN
,LF,
WD
Bra
cken
fell
Indu
stria
25,0
0 75
,00
229,
13
94,2
8 AN
,AP,
DD
,DN
,LF
Ever
ite
Bra
cken
fell
294,
39
339,
93
339,
93
- AN
,AP,
DN
,LF
Kui
ls R
iver
0,
00
0,00
14
1,42
94
,28
AN
,DD
,LF,
WD
Bla
ckhe
ath
47,1
4 81
,65
90,1
4 40
,82
AN
,DD
,DN
,LF,
RS
Sax
enbu
rg I
ndus
tria
l Par
k 16
4,99
35
0,00
20
0,00
30
0,00
AN
,DD
,DN
,LF,
RS
Oka
vang
o94
,28
94,2
8 23
,57
117,
85AN
,DD
,LF
Bra
cken
gate
15
0,00
13
1,23
27
7,89
18
7,08
AN
,AP,
DD
,LF
Paar
l -
- -
- SF
Wel
lingt
on
- -
- -
SF
Con
term
ansk
loof
15
0,00
0,
00
0,00
-
AP,
LF
Riv
erga
te
0,00
0,
00
- -
AP,
LF
Airpo
rt I
nd (
nort
h of
sew
erag
e fa
rm)
- -
- -
GY
Airpo
rt I
nd (
wes
t of
Bor
cher
ds Q
uarr
y)
- 50
,00
- -
AN
,GY
Airpo
rt I
nd (
east
of
Bor
cher
ds Q
uarr
y)
- 10
0,00
10
0,00
50
,00
AN
,GY
Dur
banv
ille
Indu
strial
Par
k -
- -
- AP
Nor
thga
te I
ndus
tria
l Par
k -
- -
-
Rode’s Report 2018:3 115 Industria standl values
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Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
18
:3
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Con
trib
uto
rs
1.0
00
2
.00
0
5.0
00
1
0.0
00
Hel
der
ber
g
The
Inte
rcha
nge
- -
- -
RS
Hel
derb
erg
Indu
strial
Par
k -
- -
- RS
Gan
ts-
- -
-RS
Hal
f W
ay
- -
- -
Som
erse
t Bus
ines
s Pa
rk
- -
- -
RS
Geo
rges
Par
k/O
nver
wac
ht
- -
- -
RS
Man
sfie
ld
- -
--
RS
Firg
rove
- -
--
Str
and
Hal
t -
- -
- Bro
adla
nds
-
- -
- P
ort
Eliz
abet
h
Dea
l Par
ty
- -
- -
HS
Nor
th E
nd
- -
100,
00
- BR,H
S
Kor
sten
/Nea
ve/S
idw
ell/
Syd
enha
m-
- -
-H
SSou
th E
nd W
alm
er
- -
- -
U
iten
hage
: Vol
ksw
agen
are
a/N
MBLP
- -
25,0
0 25
,00
BR,H
SU
iten
hage
: H
ella
/Kru
isrivi
er
- -
75,0
0 -
BR,H
S
Str
uand
ale
- -
--
HS
Mar
kman
Tow
nshi
p -
- 10
0,00
10
0,00
BR,H
S
Pers
ever
ance
- -
- -
BR,H
SW
alm
er-
- -
-H
SG
reen
bush
es-
- -
75,0
0BR,H
SFa
irvi
ew
- 25
,00
25,0
0 0,
00
BR,H
S
East
Lon
don
Arc
adia
-
- -
- CH
R
Gat
ely/
Woo
dbro
ok75
,00
150,
00
125,
00
125,
00CH
R,E
RW
ilson
ia
- -
- -
CH
R
Rode’s Report 2018:3 116 Industria standl values
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Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
18
:3
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Con
trib
uto
rs
1.0
00
2
.00
0
5.0
00
1
0.0
00
Bra
elyn
-
- -
- CH
R
Nor
then
d
- -
- -
CH
R
Chi
selh
urst
-
- -
- CH
R
Mei
sies
Hal
t 75
,00
100,
00
- -
CH
R,E
R
Bea
con
Bay
Ind
ustr
ial
100,
00
- -
- CH
R,E
R
IDZ
--
--
ERW
esba
nk I
ndus
tria
l Are
a -
- -
- CH
R
Blo
emfo
nte
in
Hilt
on-
- -
-Ea
st E
nd
- -
- -
EQV
Har
vey
Roa
d -
- -
- O
ld I
ndus
tria
l -
- -
- H
amilt
on:
Mill
St
- -
- -
Ham
ilton
: G
Lub
be S
t -
- -
- Es
toire
- -
--
EQV
Geo
rge
G
eorg
e Cen
tral
20
,55
11,7
9 9,
43
10,0
0 BVF,
GRV,M
UL
Tam
sui I
ndus
tria
0,
00
13,1
2 23
,57
0,00
BVF,
GRV,M
UL
Paca
ltsd
orp
Indu
stria
12,4
7 9,
43
14,1
4 10
,00
BVF,
GRV,M
UL
Pie
term
arit
zbu
rg
Will
owto
n
- -
- -
HN
M
kom
deni
-
- -
- H
N
Cam
ps D
rift
-
- -
- H
N
Piet
erm
aritzb
urg
Cen
tral
-
- -
- W
ind
hoe
k N
orth
- -
--
TELa
fren
z-
- -
-TE
Sou
th-
- -
-TE
Pros
perita
- -
--
TE
Rode’s Report 2018:3 117 Industria standl values
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Rode’s Report 2018:3 118 Flats market
Chapter 9: Flats market
Flats market Kobus Lamprecht
We are busy expanding our national flat-rental coverage by adding more suburbs and getting more panellists on board. Therefore we have decided to discontinue the normal discussion in this chapter about flat-rental trends across the major cities until we have built up sufficient data to properly conduct such an analysis.
In the tables that follow, we still provide the specific rental levels in the suburbs for the various grades of flats, as well as vacancy rates per city. Please note that the flat-rental data tends to be erratic. Therefore readers are advised to use an average of at least the last two quarters to obtain the latest rental rate.
Table 9.1 Flat vacancies (%)
as in quarter 2018:3 Average for all grades
(standard & upmarket combined)
Johannesburg 5,6%Pretoria 3,9%Cape Town 2,2% Durban 7,7%Bloemfontein -East Rand: Germiston - East Rand: Benoni - East London 18,6% Polokwane 6,3%George 0,0%Pietermaritzburg 3,0%Port Elizabeth - Stellenbosch 3,1%National 4,1%
![Page 138: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/138.jpg)
Tab
le 9
.2
Flat
ren
tals
: S
tan
dar
d u
nit
s A
vera
ge
ran
ds
per
mon
th a
s at
qu
arte
r 2
01
8:3
B
ach
elor
1
-Bed
room
2
-Bed
room
3
-Bed
room
Bro
ker
Co
ntr
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
Jo
han
nes
bu
rg
City
R 2
960
R 4
49
R 3
818
R 4
18
R 5
010
R 6
47
R 5
925
-
EXH
,PPG
,SYN
,VAR
Yeov
ille/
Bel
levu
e/H
ighl
ands
R 3
730
-
R 3
870
R 6
45
R 4
735
R 7
35
- -
NAN
,PPG
Je
ppes
tow
n/Fo
rdsb
urg/
Mal
vern
/
Ken
gsin
gton
-
- -
- -
- -
-
Nor
th-E
aste
rn S
ubur
bs
R 2
000
-
R 2
500
-
R 8
500
-
R 1
0 00
0 -
EXH
M
arai
sbur
g/C
rosb
y/Bri
xton
- -
- -
--
- -
Mel
dene
(M
elvi
lle,
Wes
tden
e,
Auc
klan
d Pa
rk)
- -
- -
--
- -
Kill
arne
y/Illo
vo
R 5
800
-
R 7
000
-
R 8
000
-
R 1
1 00
0 -
TR
Gre
ensi
de/V
icto
ry/E
mm
aren
tia/
Li
nden
R 5
050
-
R 6
500
-
--
- -
TR
Park
hurs
t/Pa
rkvi
ew-
- -
- R 8
500
-
- -
TR
Ros
eban
k-
- -
- -
- -
- Ran
dbur
g: F
ernd
ale/
Font
aine
blea
u R 4
500
-
R 5
500
-
R 6
650
R 1
50
- -
ETC,P
RS
Ran
dbur
g &
Sub
urbs
R 4
500
-
R 5
700
R 2
00
R 7
250
R 2
50
- -
ETC,P
RS,R
EN
Win
dsor
: Ea
st/W
est
- -
- -
R 5
800
-
- -
ETC
Cra
igha
ll/Cra
igha
ll Pa
rk
R 6
500
-
R 7
500
-
R 8
000
-
- -
TR
San
dton
: N
orth
& F
ar N
orth
R 5
400
-
R 7
200
-
R 8
950
R 9
50
R 1
1 00
0 -
TR,V
AR
San
dton
: Sou
th t
o Cen
tral
-
- -
- -
- -
-
Old
Sou
th
- -
- -
--
- -
New
Sou
th
- -
- -
--
- -
Wat
erfa
ll-
- -
- -
- -
- Bed
ford
view
- -
- -
R 8
000
-
- -
TR
Hou
ghto
n Es
tate
R 5
800
-
R 6
300
-
R 8
500
-
- -
TR
Rode’s Report 2018:3 119 Flats market
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Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om
2-B
edro
om
3-B
edro
omB
roke
r C
on
trib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mel
rose
(ex
cl.
Mel
rose
Arc
h)
- -
- -
--
- -
Mel
rose
Arc
h -
- -
- -
- -
-
Ger
mis
ton
Pr
imro
se
R 4
064
R 1
437
R 6
000
-
R 6
900
-
R 7
800
-
BS,P
H
Ger
mis
ton
Cen
tral
& S
outh
-
- -
- -
- -
- G
erm
isto
n Sou
ther
n Sub
urbs
-
- -
- -
- -
- El
sbur
g-
- -
- -
- -
- W
itfie
ld-
- -
- -
- -
-
Ben
oni
Ben
oni C
entr
al
- -
R 3
800
-
R 4
800
-
R 5
200
-
SC
Lake
field
- -
R 4
400
-
R 5
000
-
R 5
800
-
SC
Wes
tden
e-
- -
- -
- -
- Fa
rram
ere
- -
- -
R 6
800
-
R 7
500
-
SC
Mor
ehill
- -
R 4
500
-
R 5
500
-
R 6
500
-
SC
Ryn
field
- -
R 4
000
-
R 4
500
-
R 5
500
-
SC
Nor
thm
ead
- -
- -
--
- -
Cry
stal
Par
k -
- R 4
200
-
R 4
725
R 7
75
R 5
575
R 1
225
REN
,SC
Mac
kens
ie P
ark
- -
- -
--
- -
Wes
tern
Ext
ensi
on
- -
R 3
500
-
R 4
800
-
R 6
000
-
SC
Bok
sbu
rg
Bok
sbur
g-
- -
- R 5
000
-
- -
BS
Kem
pto
n P
ark
Cro
yden
- -
R 4
500
-
R 5
500
-
- -
BS
Rode’s Report 2018:3 120 Flats market
![Page 140: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/140.jpg)
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om
2-B
edro
om
3-B
edro
omB
roke
r C
on
trib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Pre
tori
a Aka
sia
- -
R 3
800
-
R 5
175
R 1
75
R 6
250
R 2
50
PPG
,TR
Pret
oria
Nor
th/D
oran
dia/
Flor
auna
-
- R 3
900
-
--
R 6
000
-
TR
Ann
lin/W
onde
rboo
m/S
inov
ille/
Mon
tana
-
- R 4
200
-
R 5
000
-
R 6
500
-
RAP
Die
Moo
t/Q
ueen
swoo
d R 3
500
-
R 4
500
R 0
R 5
200
R 3
00
R 7
250
R 1
750
RAP,
TR
East
lynn
e/Ee
rste
rust
- -
R 3
500
-
R 4
500
-
- -
RAP
Silv
erto
n/M
eyer
spar
k/La
M
onta
gne
- -
- -
--
- -
East
ern
Sub
urbs
R 3
800
-
R 4
800
-
R 5
750
R 2
50
R 6
300
-
RAP,
RIZ
Pr
etor
ius
Park
-
- -
- -
- -
- G
roen
kloo
f/Bro
okly
n/M
ost
Wat
erkl
oofs
/Era
smus
rand
-
- -
- -
- -
-
Mon
umen
t Pa
rk
- -
- -
--
- -
Sou
th E
aste
rn S
ubur
bs
- -
- -
--
- -
Sun
nysi
de
R 3
418
R 4
18
R 3
600
R 4
00
R 4
800
R 3
00
R 6
125
R 5
25
PPG
,TR
Arc
adia
R 4
188
R 1
3 R 4
663
R 1
63
R 5
218
R 2
18
R 6
765
R 7
65
PPG
,TR
Pret
oria
Cen
tral
R 3
800
-
R 4
150
R 1
50
R 4
875
R 1
75
R 5
975
R 1
75
PPG
,TR
Pret
oria
Wes
t -
- R 3
500
-
R 4
500
-
R 6
500
-
RAP
Kw
agga
sran
d/W
est
Park
-
- -
- -
- -
- El
ands
poor
t/D
anvi
lle-
- -
- -
- -
- Att
erid
gevi
lle/L
audi
um-
- -
- -
- -
- H
atfie
ld-
- R 4
900
R 1
00
R 5
500
-
R 6
500
-
RAP,
TR
Pol
okw
ane
Edua
npar
k/W
elge
lege
n-
- -
- -
- -
- Ben
dor/
Ben
dor
exte
nsio
n 1
- -
R 2
700
-
R 6
050
R 5
0 -
- RY,
SF
Rode’s Report 2018:3 121 Flats market
![Page 141: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/141.jpg)
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om2
-Bed
room
3-B
edro
omB
roke
r C
on
t rib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Ste
r Pa
rk
- -
- -
R 7
000
-
R 9
870
-
SF
Flor
a Pa
rk/F
auna
Pa
rk/C
apri
corn
R 3
000
-
R 3
500
-
R 4
200
-
R 4
600
-
RY
Môr
eglo
ed/P
iete
rsbu
rg/C
entr
al/
H
ospi
taal
Par
k R 3
050
R 3
50
R 3
800
-
R 4
500
-
R 5
800
-
RY,
SF
Ann
adal
e-
- -
- -
- -
- Pe
nina
Par
k/Iv
y Pa
rk
- -
R 3
750
R 4
50
R 5
000
-
- -
RY,
SF
Du
rban
U
pper
hig
hway
: Klo
of/H
illcr
est
R 5
000
-
R 6
500
-
R 7
500
-
- -
TR
Pine
tow
n ar
ea/Q
ueen
sbur
gh
R 3
500
R 5
00
R 4
500
R 1
000
R 5
500
R 1
000
-
- TR
,WK
Wes
tvill
e ar
ea
R 4
600
-
R 6
000
-
R 7
000
-
- -
TR
Cen
tral
City
R 3
500
-
R 4
750
-
R 5
600
-
- -
TR
Ber
ea/M
orni
ngsi
de/G
lenw
ood
R 5
000
-
R 6
500
-
R 7
200
-
- -
TR
Sou
th a
nd N
orth
Bea
ch
R 4
300
-
R 5
750
-
R 6
500
-
- -
TR
Dur
ban
Nor
th/L
a Lu
cia/
Um
hlan
ga
R 5
500
-
R 6
500
-
R 8
000
-
R 9
000
-
TR
Nor
th (
Dol
phin
) Coa
st/B
allit
o -
- -
- -
- -
- M
ontc
lair
e/Ye
llow
woo
d Pa
rk
- -
R 4
500
-
R 5
750
-
- -
TR
Blu
ff a
rea/
Dur
ban
Sou
th
R 4
200
-
R 5
500
-
R 6
000
-
- -
TR
Dur
ban
Sou
th/A
man
zim
toti/
W
arne
r Bea
ch a
rea
R 4
500
-
R 6
250
-
R 7
000
-
R 8
000
-
TR
Cap
e To
wn
Cam
ps B
ay/C
lifto
n/Ban
try
Bay
R 7
167
R 8
50
R 9
500
R 1
500
R 1
4 87
5 R 3
130
R 2
0 37
5 R 5
493
JU
S,S
F,SQ
,TR
Sea
Poi
nt/G
reen
Poi
nt/T
hree
Anc
hor
Bay
R 7
000
R 7
91
R 8
725
R 1
026
R 1
2 56
4 R 7
77
R 1
8 96
7 R 8
18
JR,J
US,P
F,SF,
SQ
,TR
City
Bow
l (ex
cl.
Hig
gova
le)
R 6
500
R 1
000
R 8
150
R 1
350
R 9
500
R 1
500
R 1
4 00
0 -
PF,S
Q,T
R
Rode’s Report 2018:3 122 Flats market
![Page 142: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/142.jpg)
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or1
-Bed
room
2
-Bed
room
3-B
edro
omB
roke
r C
on
t rib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
City
Cen
tre
R 5
500
-
R 7
900
R 1
100
-
- R 1
4 00
0 -
PF,S
Q,T
R
Wat
erfr
ont
- -
- -
--
- -
W
oods
tock
/Obs
erva
tory
- -
- -
--
- -
Ron
debo
sch/
Ros
eban
k/Cla
rem
ont
R 5
000
-
R 7
000
R 1
000
R 8
833
R 1
247
R 1
2 33
3 R 3
704
PF
,SQ
,TR
Ken
ilwor
th/W
ynbe
rg/P
lum
stea
d R 5
000
-
R 6
750
R 7
50
R 7
925
R 2
59
R 1
0 50
0 -
JR,P
F,PX
,SQ
,TR
Gra
ssy
Park
-
- -
- -
- -
-
Mui
zenb
erg/
Kal
k Bay
/Fis
h H
oek
- -
R 5
650
R 6
01
--
- -
JR,P
F,SQ
H
outb
ay-
- -
- -
- -
-
Miln
erto
n San
ddri
ft
- -
R 6
500
-
R 7
500
-
- -
PF
Miln
erto
n Roy
al A
scot
-
- -
- -
- -
-
Miln
erto
n Bur
gund
y Es
tate
R 5
000
-
R 7
250
-
R 9
000
-
- -
TR
Tabl
evie
w
R 5
000
-
R 7
250
-
R 7
850
R 1
150
R 1
0 50
0 -
LA,T
R
Park
land
s/San
dow
n/Sun
ning
dale
- -
- -
R 6
400
-
- -
PPG
Blo
uber
gstr
and
- -
- -
--
- -
Mel
kbos
stra
nd-
- -
- -
- -
- Ath
lone
- -
- -
--
- -
Gar
land
ale
- -
- -
--
- -
Ron
debo
sch
East
/Cra
wfo
rd
- -
- -
--
- -
Mitch
ells
Pla
in
- -
- -
--
- -
Bis
hop
Lavi
s -
- -
- -
- -
- M
onta
na/B
elha
r/Bel
har
Sou
th
R 3
000
-
R 4
000
-
R 5
000
-
R 6
000
-
TR
Pine
land
s-
- R 6
500
-
R 7
700
-
R 9
000
-
PF
Bro
okly
n/Rug
by/M
aitlan
d-
- R 4
500
-
R 5
800
-
R 7
500
-
SQ
,TR
Rode’s Report 2018:3 123 Flats market
![Page 143: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/143.jpg)
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or1
-Bed
room
2
-Bed
room
3
-Bed
room
Bro
ker
Co
nt r
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
onte
Vis
ta/G
oodw
ood/
Paro
w/B
ellv
ille
Cen
tral
R 4
500
-
R 5
188
R 4
75
R 6
933
R 4
19
R 7
500
-
LA,P
F,SQ
,TR
Tyge
r Val
ley
area
R 4
800
-
R 7
500
-
R 7
867
R 5
79
R 1
1 00
0 -
LA,R
S,T
R
Dur
banv
ille
- -
- -
--
- -
Bra
cken
fell/
Kui
ls R
iver
R 4
500
-
R 4
975
R 2
5 R 5
788
R 4
72
R 7
650
R 8
50
CIR
,LA,P
F,TR
Som
erse
t W
est
R 4
000
-
R 6
000
-
R 7
500
-
R 1
0 00
0 -
JUS
Str
and
R 3
500
-
R 4
100
R 1
00
R 5
475
R 3
56
R 6
150
R 3
56
JUS,L
A,S
Q,T
R
Gor
don'
s Bay
R 3
800
-
R 4
500
-
R 5
550
R 7
57
R 6
500
-
CIR
,JU
S,L
A,T
R
Kra
aifo
ntei
n (e
xcl.
Buh
-Rei
n)
- -
- -
R 5
900
-
- -
LA
Buh
-Rei
n Es
tate
-
- -
- -
- -
-
Paar
l R 4
600
-
R 4
850
-
R 5
030
-
R 1
0 50
0 -
PRU
W
ellin
gton
- -
- -
--
- -
Cen
tury
City
- -
- -
--
- -
Ste
llen
bos
ch
Clo
etes
ville
R 3
000
-
R 3
500
-
R 5
000
-
R 6
000
-
MH
P O
nder
Pap
egaa
iber
g R 4
000
-
R 4
750
R 2
50
R 8
000
R 1
000
R 1
0 00
0 -
MH
P,RR
Sim
onsw
yk
R 5
000
-
R 6
000
-
R 8
000
-
R 1
0 50
0 -
MH
P Id
as V
alle
y -
- -
- -
- -
- U
niep
ark
-
- -
- -
- -
- Kri
gevi
lle
- -
- -
--
- -
Dal
sig
- -
- -
--
- -
Kle
inge
luk
-
- -
- -
- -
- Pa
rady
sklo
of
- -
- -
--
- -
Rode’s Report 2018:3 124 Flats market
![Page 144: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/144.jpg)
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om2
-Bed
room
3-B
edro
omB
roke
r C
on
t rib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Kle
in W
elge
vond
en
- -
- -
R 8
250
R 2
50
R 1
0 00
0 -
MER
,MH
P N
uutg
evon
den
- -
- -
R 7
500
R 0
R 9
000
-
MER
,MH
P N
ooitge
dach
t Vill
age
- -
- -
R 1
0 75
0 R 2
50
R 1
3 00
0 -
MER
,MH
P Cam
pus
– Cen
tral
R 6
950
R 1
450
-
- R 1
0 50
0 R 1
500
R 1
3 00
0 -
MER
,MH
P Cam
pus
– W
est
R 6
500
-
- -
R 1
0 00
0 -
- -
MER
Cam
pus
– N
orth
R 5
000
-
- -
--
R 8
100
-
MER
La
Col
line
R 3
800
-
R 4
200
-
R 7
250
R 2
50
R 8
000
-
MER
,MH
P
Geo
rge
Hea
ther
Par
k -
- -
- -
- -
- H
eath
erla
nds
- -
- -
--
- -
Kin
g G
eorg
e Pa
rk
- -
- -
--
- -
Dor
meh
l's D
rift
-
- -
- R 5
300
-
- -
BVF
Geo
rge
Sou
th
R 3
150
R 1
50
R 3
500
R 0
R 4
725
R 2
25
R 5
750
R 2
50
BVF,
GRV
Geo
rge
Cen
tral
R 3
400
R 1
00
R 3
875
R 1
25
R 4
850
R 1
00
R 5
875
R 1
25
BVF,
GRV
Bo-
Dor
p R 3
500
-
R 4
000
-
R 5
250
-
R 6
250
-
BVF
Den
ver
Park
-
- -
- -
- -
- Lo
erie
Par
k -
- -
- -
- -
- Pr
otea
Par
k -
- -
- -
- -
- Pa
rkde
ne-
- -
- -
- -
- Bor
cher
ds-
- -
- -
- -
- La
waa
ikam
p-
- -
- -
- -
- Bal
lot's
Vie
w
- -
- -
--
- -
Her
olds
Bay
(ex
cl.
Oub
aai)
-
- -
- -
- -
- O
ubaa
i-
- -
- -
- -
-
Rode’s Report 2018:3 125 Flats market
![Page 145: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/145.jpg)
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om
2-B
edro
om3
-Bed
room
Bro
ker
Co
ntr
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
P
ort
Eliz
abet
h
Sum
mer
stra
nd/H
umew
ood/
Sou
th
End
R 3
650
R 1
50
R 5
600
-
R 6
700
-
- -
IPC,T
R
Wal
mer
R 3
300
-
R 4
200
-
--
- -
TR
Cen
tral
/Nor
th E
nd
R 3
000
-
R 3
400
-
R 4
400
-
- -
TR
New
ton
Park
-
- -
- R 5
200
-
- -
TR
Wes
teri
ng-
- -
- R 5
000
-
R 5
500
-
TR
Kab
ega
- -
- -
--
R 6
250
R 2
50
IPC,T
R
Alg
oa P
ark
- -
- -
--
R 3
960
-
TR
Lorr
aine
- -
- -
--
- -
She
rwoo
d R 2
340
-
- -
--
- -
TR
Fair
view
- -
- -
--
- -
East
Lon
do
n
Sou
ther
nwoo
d/Q
uign
ey
Bea
ch/C
BD
R 3
200
-
R 3
450
R 3
49
R 5
217
R 5
72
R 6
267
R 7
13
EB,P
PG,T
R
Ber
ea/V
ince
nt
R 3
500
-
R 3
950
R 5
50
R 5
500
-
R 7
250
R 7
50
EB,T
R
Cam
brid
ge/A
mal
inda
/Hav
en H
ills
R 3
000
-
R 3
450
R 5
0 R 5
250
R 2
50
R 6
250
R 2
50
EB,T
R
Gon
ubie
Par
k R 5
000
-
R 5
500
-
R 6
000
-
R 8
500
-
TR
Bea
con
Bay
R 5
500
-
R 6
000
R 0
R 7
333
R 4
71
R 8
667
R 1
027
EB
,RM
,TR
Nah
oon
R 5
500
-
R 6
000
-
R 8
000
-
R 1
0 00
0 -
TR
Gon
ubie
R 5
000
-
R 4
875
R 6
25
R 5
813
R 4
80
R 8
250
R 2
50
EB,D
AL,
RM
,TR
Cov
e Roc
k R 3
500
-
R 4
000
-
R 5
000
-
R 7
500
-
TR
Kim
ber
ley
New
Par
k R 3
500
-
R 5
200
-
R 7
000
-
R 8
000
-
PW
Elto
ro P
ark
R 4
000
-
R 4
500
-
R 6
000
-
R 7
500
-
PW
Hill
cres
t R 4
000
-
R 4
500
-
R 6
000
-
R 7
500
-
PW
Rode’s Report 2018:3 126 Flats market
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Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om
2-B
edro
om
3-B
edro
omB
roke
r C
on
trib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Blo
emfo
nte
in
Blo
emfo
ntei
n CBD
-
- -
- -
- -
- W
estd
ene
- -
- -
--
- -
Will
ows
- -
- -
--
- -
Nav
alsi
g-
- -
- -
- -
- Arb
oret
em-
- -
- -
- -
- La
ngen
hove
npar
k-
- -
- -
- -
- Bai
nsvl
ei-
- -
- -
- -
- U
nive
rsitas
- -
- -
--
- -
Pent
agon
Par
k -
- -
- -
- -
-
Pie
term
arit
zbu
rg
Woo
dlan
ds/N
orth
dale
/Bom
bay
Hei
ghts
/Ori
ent
Hei
ghts
/Alla
ndal
e -
- -
- -
- -
-
Cha
se V
alle
y/O
ak P
ark/
Cha
sede
ne/N
orth
ern
Park
-
- R 4
700
-
R 5
800
-
R 7
000
-
HN
Wem
bley
/Cla
rend
on-
- R 4
800
-
R 6
100
-
R 7
900
-
HN
Pi
eter
mar
itzb
urg
City
R 4
100
-
R 4
300
-
R 5
200
-
R 5
700
-
HN
Pr
estb
ury
-
- R 4
000
-
R 5
000
-
R 5
700
-
HN
Pe
lham
/Sco
ttsv
ille/
Ric
hmon
d Cre
st/B
isle
y
- -
- -
--
- -
Hay
field
s/Li
ncol
n M
eade
/ Bel
levu
e/Th
e M
eado
ws
- -
R 5
000
-
R 5
400
-
R 6
200
-
HN
Van
der
bij
lpar
k Van
derb
ijlpa
rk C
entr
al
- -
R 4
070
-
--
- -
DT
Van
derb
ijlpa
rk C
E -
- R 4
550
-
--
- -
DT
Van
derb
ijlpa
rk S
E -
- -
- -
- -
- Van
derb
ijlpa
rk S
W
- -
- -
--
- -
Van
derb
ijlpa
rk C
W
- -
- -
--
- -
Rode’s Report 2018:3 127 Flats market
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Tab
le 9
.3
Flat
ren
tals
: U
pm
arke
t u
nit
s A
vera
ge
ran
ds
per
mon
th a
s at
qu
arte
r 2
01
8:3
B
ach
elor
1
-Bed
room
2
-Bed
room
3-B
edro
omB
roke
r C
on
trib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Joh
ann
esb
urg
City
- -
- -
--
R 6
500
-
SYN
Ye
ovill
e/Bel
levu
e/H
ighl
ands
- -
- -
R 5
000
-
- -
SYN
Je
ppes
tow
n/Fo
rdsb
urg/
Mal
vern
/
Ken
gsin
gton
R 3
500
-
R 3
700
-
R 4
100
-
- -
SYN
Nor
th-E
aste
rn S
ubur
bs
R 3
000
-
R 4
500
-
R 6
500
-
R 8
000
-
EXH
M
arai
sbur
g/C
rosb
y/Bri
xton
- -
- -
--
- -
Mel
dene
(M
elvi
lle,
Wes
tden
e,
Auc
klan
d Pa
rk)
- -
- -
--
- -
Kill
arne
y/Illo
vo
R 6
500
-
R 7
500
-
R 1
2 25
0 -
R 1
5 00
0 -
TR
Gre
ensi
de/V
icto
ry/E
mm
aren
tia/
Li
nden
R 7
000
-
R 8
000
-
--
- -
TR
Park
hurs
t/Pa
rkvi
ew-
- -
- R 1
2 50
0 -
- -
TR
Ros
eban
k-
- -
- -
- -
- Ran
dbur
g: F
ernd
ale/
Font
aine
blea
u R 5
000
R 2
00
R 5
800
R 4
00
R 7
067
R 3
68
R 8
818
R 1
183
ET
C,P
PG,P
RS
Ran
dbur
g &
Sub
urbs
R 5
500
-
R 6
200
-
R 9
278
R 2
219
R 1
4 00
0 -
ETC,P
PG,P
RS
Win
dsor
: Ea
st/W
est
- -
- -
--
- -
ETC
Cra
igha
ll/Cra
igha
ll Pa
rk
- -
- -
--
- -
TR
San
dton
: N
orth
& F
ar N
orth
-
- -
- R 1
2 50
0 -
R 2
4 00
0 -
TR
San
dton
: Sou
th t
o Cen
tral
-
- -
- -
- -
-
Old
Sou
th
- -
- -
--
- -
New
Sou
th
- -
- -
--
- -
Wat
erfa
ll-
- -
- -
- -
- Bed
ford
view
- -
- -
R 1
0 00
0 -
- -
TR
Hou
ghto
n Es
tate
R 6
500
-
R 6
800
-
R 9
970
-
- -
TR
Rode’s Report 2018:3 128 Flats market
![Page 148: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/148.jpg)
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om
2-B
edro
om
3-B
edro
omB
roke
r C
on
trib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mel
rose
(ex
cl.
Mel
rose
Arc
h)
- -
- -
--
- -
Mel
rose
Arc
h -
- -
- -
- -
-
Ger
mis
ton
Pr
imro
se-
- -
- -
- -
- PH
G
erm
isto
n Cen
tral
& S
outh
-
- -
- -
- -
- G
erm
isto
n Sou
ther
n Sub
urbs
R 2
810
-
R 3
080
-
R 3
400
-
- -
PH
Elsb
urg
- -
R 2
720
-
R 3
530
-
- -
PH
Witfie
ld-
- R 3
400
-
R 3
640
-
R 3
940
-
PH
Ben
oni
Ben
oni C
entr
al
- -
R 4
200
-
R 4
900
-
R 5
400
-
SC
Lake
field
- -
R 6
000
-
R 7
000
-
R 8
500
-
SC
Wes
tden
e-
- -
- -
- -
- Fa
rram
ere
- -
- -
R 7
500
-
R 8
750
-
SC
Mor
ehill
- -
R 5
000
-
R 6
000
-
R 7
500
-
SC
Ryn
field
- -
R 6
500
-
R 7
500
-
R 8
500
-
SC
Nor
thm
ead
- -
- -
--
- -
Cry
stal
Par
k -
- R 5
000
-
R 6
000
-
R 6
800
-
SC
Mac
kens
ie P
ark
- -
- -
--
- -
Wes
tern
Ext
ensi
on
- -
- -
--
- -
Bok
sbu
rg
Bok
sbur
g-
- -
- R 6
000
-
- -
BS
Kem
pto
n P
ark
Cro
yden
- -
- -
R 8
000
-
- -
BS
Rode’s Report 2018:3 129 Flats market
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Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om
2-B
edro
om
3-B
edro
omB
roke
r C
on
trib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Pre
tori
a Aka
sia
- -
- -
--
- -
Pret
oria
Nor
th/D
oran
dia/
Flor
auna
-
- -
- -
- -
- Ann
lin/W
onde
rboo
m/S
inov
ille/
Mon
tana
-
- R 4
500
-
R 5
000
-
- -
TR
Die
Moo
t/Q
ueen
swoo
d R 3
800
-
R 4
700
-
R 6
000
-
R 1
0 00
0 -
RAP
East
lynn
e/Ee
rste
rust
- -
- -
--
- -
Silv
erto
n/M
eyer
spar
k/La
M
onta
gne
- -
- -
--
- -
East
ern
Sub
urbs
R 4
200
-
R 5
700
-
--
- -
RIZ
Pr
etor
ius
Park
-
- -
- -
- -
- G
roen
kloo
f/Bro
okly
n/M
ost
Wat
erkl
oofs
/Era
smus
rand
-
- -
- -
- -
-
Mon
umen
t Pa
rk
- -
- -
--
- -
Sou
th E
aste
rn S
ubur
bs
- -
- -
--
- -
Sun
nysi
de-
- -
- -
- -
- Arc
adia
- -
- -
--
- -
Pret
oria
Cen
tral
-
- -
- -
- -
- Pr
etor
ia W
est
- -
- -
--
- -
Kw
agga
sran
d/W
est
Park
-
- -
- -
- -
- El
ands
poor
t/D
anvi
lle-
- -
- -
- -
- Att
erid
gevi
lle/L
audi
um-
- -
- -
- -
- H
atfie
ld
R 4
900
-
R 5
300
-
R 6
250
-
- -
RIZ
Pol
okw
ane
Edua
npar
k/W
elge
lege
n-
- -
- -
- -
- Ben
dor/
Ben
dor
exte
nsio
n 1
- -
- -
R 9
800
-
R 1
4 50
0 -
SF
Rode’s Report 2018:3 130 Flats market
![Page 150: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/150.jpg)
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om2
-Bed
room
3-B
edro
omB
roke
r C
on
trib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Ste
r Pa
rk
- -
- -
- -
- -
Flor
a Pa
rk/F
auna
Par
k/Cap
rico
rn
R 3
650
-
R 4
200
-
R 5
600
-
R 5
800
-
RY
Môr
eglo
ed/P
iete
rsbu
rg/C
entr
al/
H
ospi
taal
Par
k R 3
750
R 2
50
R 4
425
R 3
75
R 4
600
-
- -
RY,
TG
Ann
adal
e R 3
160
-
R 3
650
-
R 5
160
-
- -
RY
Peni
na P
ark/
Ivy
Park
-
- -
- -
- -
-
Du
rban
U
pper
hig
hway
: Klo
of/H
illcr
est
- -
- -
- -
- -
Pine
tow
n ar
ea/Q
ueen
sbur
gh
- -
- -
- -
- -
WK
Wes
tvill
e ar
ea
- -
- -
- -
- -
Cen
tral
City
- -
- -
- -
- -
Ber
ea/M
orni
ngsi
de/G
lenw
ood
R 5
200
-
R 7
000
-
R 8
000
-
- -
TR
Sou
th a
nd N
orth
Bea
ch
R 4
600
-
R 6
750
-
R 7
500
-
- -
TR
Dur
ban
Nor
th/L
a Lu
cia/
Um
hlan
ga
- -
- -
- -
- -
Nor
th (
Dol
phin
) Coa
st/B
allit
o -
- -
- -
- -
- M
ontc
lair
e/Ye
llow
woo
d Pa
rk
- -
- -
- -
- -
Blu
ff a
rea/
Dur
ban
Sou
th
- -
- -
- -
- -
Dur
ban
Sou
th/A
man
zim
toti/
W
arne
r Bea
ch a
rea
- -
- -
- -
- -
Cap
e To
wn
Cam
ps B
ay/C
lifto
n/Ban
try
Bay
R 1
1 66
7 R 3
682
R 1
5 16
7 R 4
871
R 2
2 00
0 R 6
000
R 2
9 75
0 R 8
250
JU
S,S
F,TR
Sea
Poi
nt/G
reen
Poi
nt/T
hree
Anc
hor
Bay
R 8
667
R 1
247
R 1
0 83
3 R 1
841
R 1
5 50
0 R 5
00
R 2
4 75
0 R 3
250
JU
S,S
F,SQ
,TR
City
Bow
l (ex
cl.
Hig
gova
le)
R 6
200
-
R 7
500
-
R 1
0 20
0 R 2
00
R 1
6 50
0 -
LA,T
R
Rode’s Report 2018:3 131 Flats market
![Page 151: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/151.jpg)
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om2
-Bed
room
3-B
edro
omB
roke
r C
on
trib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
City
Cen
tre
R 6
200
-
- -
R 1
0 40
0 -
R 1
6 50
0 -
TR
Wat
erfr
ont
- -
- -
- -
- -
W
oods
tock
/Obs
erva
tory
- -
- -
- -
- -
Ron
debo
sch/
Ros
eban
k/Cla
rem
ont
R 6
000
-
- -
R 1
0 85
0 R 2
350
R 1
3 00
0 -
LA,T
R
Ken
ilwor
th/W
ynbe
rg/P
lum
stea
d R 6
000
-
R 7
000
-
R 9
100
R 2
165
R 1
3 00
0 -
LA,P
X,T
R
Gra
ssy
Park
-
- -
- -
- -
-
Mui
zenb
erg/
Kal
k Bay
/Fis
h H
oek
- -
- -
R 6
800
-
R 8
000
-
TR
Hou
tbay
- -
- -
- -
- -
M
ilner
ton
San
ddri
ft
- -
- -
- -
- -
M
ilner
ton
Roy
al A
scot
-
- -
- -
- -
-
Miln
erto
n Bur
gund
y Es
tate
R 6
500
-
R 8
500
-
R 1
0 50
0 -
R 1
3 00
0 -
TR
Tabl
evie
w
R 6
500
-
R 8
500
-
R 8
750
R 1
750
R 1
3 00
0 -
LA,T
R
Park
land
s/San
dow
n/Sun
ning
dale
- -
- -
- -
- -
Blo
uber
gstr
and
- -
- -
- -
- -
Mel
kbos
stra
nd-
- -
- -
- -
- Ath
lone
- -
- -
- -
- -
Gar
land
ale
- -
- -
- -
- -
Ron
debo
sch
East
/Cra
wfo
rd
- -
- -
- -
- -
Mitch
ells
Pla
in
- -
- -
- -
- -
Bis
hop
Lavi
s -
- -
- -
- -
- M
onta
na/B
elha
r/Bel
har
Sou
th
R 3
500
-
R 4
900
-
R 6
000
-
R 7
000
-
TR
Pine
land
s-
- -
- -
- -
-
Bro
okly
n/Rug
by/M
aitlan
d R 3
600
-
- -
R 6
350
R 6
50
- -
LA,T
R
Rode’s Report 2018:3 132 Flats market
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Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or1
-Bed
room
2-B
edro
om3
-Bed
room
Bro
ker
Co
nt r
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
onte
Vis
ta/G
oodw
ood/
Paro
w/B
ellv
ille
Cen
tral
R 5
000
-
R 6
000
-
R 8
000
-
- -
LA,T
R
Tyge
r Val
ley
area
-
- R 8
500
-
R 9
400
R 9
42
R 1
3 00
0 -
LA,R
S,T
R
Dur
banv
ille
- -
- -
- -
- -
Bra
cken
fell/
Kui
ls R
iver
-
- -
- R 6
125
R 1
25
- -
LA,T
R
Som
erse
t W
est
- -
- -
- -
- -
Str
and
- -
- -
R 6
600
-
R 7
500
-
TR
Gor
don'
s Bay
-
- R 4
800
-
R 6
600
-
R 7
500
-
LA,T
R
Kra
aifo
ntei
n (e
xcl.
Buh
-Rei
n)
- -
- -
R 6
800
-
- -
LA
Buh
-Rei
n Es
tate
-
- -
- -
- -
- Pa
arl
R 5
000
-
- -
R 8
600
R 2
400
R 1
6 00
0 -
LA,P
RU
W
ellin
gton
- -
- -
- -
- -
Cen
tury
City
- -
- -
- -
- -
Ste
llen
bos
ch
Clo
etes
ville
R 3
500
-
R 4
000
-
R 6
000
-
R 8
000
-
MH
P O
nder
Pap
egaa
iber
g R 5
000
-
R 5
500
-
R 8
750
R 2
50
R 1
2 00
0 -
MH
P,RR
Sim
onsw
yk
R 6
000
-
R 6
500
-
R 9
000
-
R 1
2 00
0 -
MH
P Id
as V
alle
y -
- -
- -
- -
- U
niep
ark
-
- -
- -
- -
- Kri
gevi
lle
- -
- -
- -
- -
Dal
sig
- -
- -
- -
- -
Kle
inge
luk
-
- -
- -
- -
- Pa
rady
sklo
of
- -
- -
- -
- -
Rode’s Report 2018:3 133 Flats market
![Page 153: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/153.jpg)
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om2
-Bed
room
3-B
edro
omB
roke
r C
on
trib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Kle
in W
elge
vond
en
- -
- -
R 9
100
R 1
00
R 1
1 00
0 -
MER
,MH
P N
uutg
evon
den
- -
- -
R 8
000
R 0
R 9
500
-
MER
,MH
P N
ooitge
dach
t Vill
age
- -
- -
R 1
2 00
0 R 0
R 1
6 00
0 -
MER
,MH
P Cam
pus
– Cen
tral
R 8
250
R 2
250
-
- R 1
4 00
0 R 2
000
R 1
8 00
0 R 0
M
ER,M
HP
Cam
pus
– W
est
R 7
200
-
- -
R 1
3 00
0 -
- -
MER
Cam
pus
– N
orth
R 8
000
-
- -
R 1
1 00
0 -
- -
MER
La
Col
line
R 5
500
R 1
500
-
- R 8
100
R 1
00
R 9
000
-
MER
,MH
P
Geo
rge
Hea
ther
Par
k -
- -
- -
- -
- H
eath
erla
nds
- -
- -
- -
- -
Kin
g G
eorg
e Pa
rk
- -
- -
- -
- -
Dor
meh
l's D
rift
-
- -
- R 7
500
-
R 8
500
-
BVF
Geo
rge
Sou
th
R 3
500
-
R 4
000
-
R 5
000
-
R 6
500
-
GRV
Geo
rge
Cen
tral
R 3
500
-
R 4
200
-
R 5
500
-
R 6
000
-
GRV
Bo-
Dor
p-
- -
- -
- -
- D
enve
r Pa
rk
- -
- -
- -
- -
Loer
ie P
ark
- -
- -
- -
- -
Prot
ea P
ark
- -
- -
- -
- -
Park
dene
- -
- -
- -
- -
Bor
cher
ds-
- -
- -
- -
- La
waa
ikam
p-
- -
- -
- -
- Bal
lot's
Vie
w
- -
- -
- -
- -
Her
olds
Bay
(ex
cl.
Oub
aai)
-
- -
- -
- -
- O
ubaa
i-
- -
- -
- -
-
Rode’s Report 2018:3 134 Flats market
![Page 154: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/154.jpg)
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om2
-Bed
room
3-B
edro
omB
roke
r C
on
trib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Por
t El
izab
eth
Sum
mer
stra
nd/H
umew
ood/
Sou
th
End
- -
- -
- -
- -
Wal
mer
- -
- -
R 6
100
-
- -
IPC
Cen
tral
/Nor
th E
nd
- -
- -
- -
- -
New
ton
Park
-
- -
- -
- -
- W
este
ring
- -
- -
- -
- -
Kab
ega
- -
- -
- -
- -
Alg
oa P
ark
- -
- -
- -
- -
Lorr
aine
- -
- -
- -
- -
She
rwoo
d-
- -
- -
- -
- Fa
irvi
ew-
- -
- -
- -
-
East
Lon
do
n
Sou
ther
nwoo
d/Q
uign
ey
Bea
ch/C
BD
R 4
000
-
R 4
500
-
R 6
500
R 0
R 7
500
R 5
00
EB,T
R
Ber
ea/V
ince
nt
R 3
750
-
R 4
400
R 6
00
R 6
000
-
R 8
000
R 1
000
EB
,TR
Cam
brid
ge/A
mal
inda
/Hav
en H
ills
R 3
300
-
R 3
750
R 2
50
R 5
900
R 1
00
R 7
250
R 2
50
EB,T
R
Gon
ubie
Par
k R 5
500
-
R 6
000
-
R 7
500
-
R 9
000
-
TR
Bea
con
Bay
R 6
000
-
R 6
250
-
R 7
790
R 5
05
R 9
967
R 1
438
EB
,RM
,TR
Nah
oon
R 6
000
-
R 6
250
-
R 7
935
R 5
65
R 1
0 45
0 R 1
550
RM
,TR
Gon
ubie
R 5
500
-
R 6
000
-
R 7
350
R 1
50
R 9
200
R 2
12
EB,D
AL,
RM
,TR
Cov
e Roc
k R 3
750
-
R 4
500
-
R 5
500
-
R 8
000
-
TR
Blo
emfo
nte
in
Blo
emfo
ntei
n CBD
-
- -
- -
- -
- W
estd
ene
- -
- -
- -
- -
Will
ows
- -
- -
- -
- -
Nav
alsi
g-
- -
- -
- -
-
Rode’s Report 2018:3 135 Flats market
![Page 155: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/155.jpg)
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Bac
hel
or
1-B
edro
om2
-Bed
room
3-B
edro
omB
roke
r C
on
trib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Arb
oret
em-
- -
- -
- -
- La
ngen
hove
npar
k-
- -
- -
- -
- Bai
nsvl
ei-
- -
- -
- -
- U
nive
rsitas
- -
- -
- -
- -
Pent
agon
Par
k -
- -
- -
- -
-
Kim
ber
ley
New
Par
k -
- -
- -
- -
- El
toro
Par
k -
- -
- -
- -
- H
illcr
est
- -
- -
- -
- -
Pie
term
arit
zbu
rg
Woo
dlan
ds/N
orth
dale
/Bom
bay
Hei
ghts
/Ori
ent
Hei
ghts
/Alla
ndal
e -
- -
- -
- -
-
Cha
se V
alle
y/O
ak P
ark/
Cha
sede
ne/N
orth
ern
Park
-
- R 5
300
-
R 6
000
-
R 8
300
-
HN
Wem
bley
/Cla
rend
on-
- R 7
100
-
R 9
200
-
R 1
2 60
0 -
HN
Pi
eter
mar
itzb
urg
City
- -
- -
- -
- -
Pres
tbur
y
- -
- -
- -
- -
Pelh
am/S
cott
svill
e/Ric
hmon
d Cre
st/
Bis
ley
R 3
000
-
R 3
700
-
R 5
300
-
R 6
900
-
HN
Hay
field
s/Li
ncol
n M
eade
/ Bel
levu
e/Th
e M
eado
ws
- -
- -
- -
- -
Van
der
bij
lpar
k Van
derb
ijlpa
rk C
entr
al
- -
- -
- -
- -
Van
derb
ijlpa
rk C
E -
- -
- -
- -
- Van
derb
ijlpa
rk S
E -
- -
- -
- -
- Van
derb
ijlpa
rk S
W
- -
- -
- -
- -
Van
derb
ijlpa
rk C
W
- -
- -
- -
- -
Rode’s Report 2018:3 136 Flats market
![Page 156: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/156.jpg)
Tab
le 9
.4
Flat
: P
arki
ng
ren
tals
A
vera
ge
ran
ds
per
mon
th a
s at
qu
arte
r 2
01
8:3
O
pen
Cov
ered
Lock
up
Bas
emen
tB
roke
r C
on
t rib
uto
rs
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Joh
ann
esb
urg
City
R 2
00
- R 3
00
- R 4
00
- R 4
65
R 6
5 EX
H,P
PG,V
AR
Yeov
ille/
Bel
levu
e/H
ighl
ands
R 2
40
R 4
0 R 3
00
- R 4
00
- R 4
00
- EX
H,P
PG
Jepp
esto
wn/
Ford
sbur
g/M
alve
rn/
Ken
gsin
gton
-
Nor
th-E
aste
rn S
ubur
bs
R 3
00
- R 4
00
- R 4
00
- R 4
00
- EX
H
Mar
aisb
urg/
Cro
sby/
Bri
xton
- -
- -
--
- -
Mel
dene
(M
elvi
lle,
Wes
tden
e,
Auc
klan
d Pa
rk)
- -
- -
--
- -
Kill
arne
y/Illo
vo-
- -
- -
- -
- G
reen
side
/Vic
tory
/Em
mar
entia/
Li
nden
-
- -
- -
- -
-
Park
hurs
t/Pa
rkvi
ew-
- -
- -
- -
- Ros
eban
k-
- -
- -
- -
- Ran
dbur
g: F
ernd
ale/
Font
aine
blea
u R 2
00
R 1
00
R 3
00
- -
- R 1
00
- ET
C,P
PG
Ran
dbur
g &
Sub
urbs
R 2
25
R 7
5 R 3
00
- -
- R 2
00
- ET
C,P
PG
Win
dsor
: Ea
st/W
est
- -
- -
--
- -
Cra
igha
ll/Cra
igha
ll Pa
rk
- -
- -
--
- -
San
dton
: N
orth
& F
ar N
orth
-
- -
- -
- -
- San
dton
: Sou
th t
o Cen
tral
-
- -
- -
- -
- O
ld S
outh
-
- -
- -
- -
- N
ew S
outh
-
- -
- -
- -
- W
ater
fall
- -
- -
--
- -
Bed
ford
view
- -
- -
--
- -
Hou
ghto
n Es
tate
-
- -
- -
- -
-
Rode’s Report 2018:3 137 Flats market
![Page 157: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/157.jpg)
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Op
enC
over
edLo
cku
pB
asem
ent
Bro
ker
Co
nt r
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
elro
se (
excl
. M
elro
se A
rch)
-
- -
- -
- -
- M
elro
se A
rch
- -
- -
--
- -
Ger
mis
ton
Pr
imro
se-
- -
- -
- -
- G
erm
isto
n Cen
tral
& S
outh
-
- -
- -
- -
- G
erm
isto
n Sou
ther
n Sub
urbs
-
- -
- -
- -
- El
sbur
g-
- -
- -
- -
- W
itfie
ld-
- -
- -
- -
-
Ben
oni
Ben
oni C
entr
al
- -
- -
--
- -
Lake
field
- -
- -
--
- -
Wes
tden
e-
- -
- -
- -
- Fa
rram
ere
- -
- -
--
- -
Mor
ehill
- -
- -
--
- -
Ryn
field
- -
- -
--
- -
Nor
thm
ead
- -
R 1
00
- -
- -
- SC
Cry
stal
Par
k -
- -
- -
- -
- M
acke
nsie
Par
k -
- -
- -
- -
- W
este
rn E
xten
sion
-
- -
- -
- -
-
Bok
sbu
rg
Bok
sbur
g-
- -
- -
- -
-
Kem
pto
n P
ark
Cro
yden
- -
- -
--
- -
Rode’s Report 2018:3 138 Flats market
![Page 158: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/158.jpg)
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Op
enC
over
edLo
cku
pB
asem
ent
Bro
ker
Co
nt r
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
P
reto
ria
Aka
sia
- -
- -
--
- -
Pret
oria
Nor
th/D
oran
dia/
Flor
auna
-
- -
- -
- -
- Ann
lin/W
onde
rboo
m/S
inov
ille/
Mon
tana
-
- -
- -
- -
-
Die
Moo
t/Q
ueen
swoo
d -
- -
- -
- -
- Ea
stly
nne/
Eers
teru
st-
- -
- -
- -
- Silv
erto
n/M
eyer
spar
k/La
Mon
tagn
e -
- -
- -
- -
- Ea
ster
n Sub
urbs
-
- -
- -
- -
- Pr
etor
ius
Park
-
- -
- -
- -
- G
roen
kloo
f/Bro
okly
n/M
ost
Wat
erkl
oofs
/Era
smus
rand
-
- -
- -
- -
-
Mon
umen
t Pa
rk
- -
- -
--
- -
Sou
th E
aste
rn S
ubur
bs
- -
- -
--
- -
Sun
nysi
deR 1
65
R 5
5 R 2
50
- -
- -
- PP
G,T
R
Arc
adia
R 1
60
R 1
0 R 2
50
- -
- -
- PP
G,T
R
Pret
oria
Cen
tral
R 1
76
- -
- -
- -
- PP
G
Pret
oria
Wes
t -
- -
- -
- -
- Kw
agga
sran
d/W
est
Park
-
- -
- -
- -
- El
ands
poor
t/D
anvi
lle-
- -
- -
- -
- Att
erid
gevi
lle/L
audi
um-
- -
- -
- -
- H
atfie
ld-
- -
- -
- -
-
Pol
okw
ane
Edua
npar
k/W
elge
lege
n-
- -
- -
- -
- Ben
dor/
Ben
dor
exte
nsio
n 1
- -
- -
--
- -
Rode’s Report 2018:3 138 Flats market
![Page 159: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/159.jpg)
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Op
enC
over
edLo
cku
pB
asem
ent
Bro
ker
Co
nt r
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
Ste
r Pa
rk
- -
- -
--
- -
Flor
a Pa
rk/F
auna
Par
k/Cap
rico
rn
- -
- -
--
- -
Môr
eglo
ed/P
iete
rsbu
rg/C
entr
al/
H
ospi
taal
Par
k -
- R 2
10
- -
- -
- RY
Ann
adal
e-
- -
- -
- -
- Pe
nina
Par
k/Iv
y Pa
rk
- -
- -
--
- -
Du
rban
U
pper
hig
hway
: Klo
of/H
illcr
est
- -
- -
--
- -
Pine
tow
n ar
ea/Q
ueen
sbur
gh
- -
- -
--
- -
Wes
tvill
e ar
ea
- -
- -
--
- -
Cen
tral
City
R 3
00
- -
- R 3
60
- -
- TR
Ber
ea/M
orni
ngsi
de/G
lenw
ood
R 3
00
- R 3
25
- R 3
75
- -
- TR
Sou
th a
nd N
orth
Bea
ch
R 3
00
- R 3
50
- -
- -
- TR
D
urba
n N
orth
/La
Luci
a/U
mhl
anga
R 3
00
- R 3
75
- R 4
00
- -
- TR
N
orth
(D
olph
in)
Coa
st/B
allit
o -
- -
- -
- -
- M
ontc
lair
e/Ye
llow
woo
d Pa
rk
R 1
75
- R 2
60
- R 3
30
- -
- TR
Blu
ff a
rea/
Dur
ban
Sou
th
R 1
65
- -
- -
- -
- TR
D
urba
n Sou
th/A
man
zim
toti/
W
arne
r Bea
ch a
rea
R 2
50
- -
- -
- -
- TR
Cap
e To
wn
Cam
ps B
ay/C
lifto
n/Ban
try
Bay
R 6
50
- R 8
00
- R 1
000
-
- -
SQ
Sea
Poi
nt/G
reen
Poi
nt/T
hree
Anc
hor
Bay
R 7
00
R 5
0 R 8
25
R 2
5 R 1
250
R 2
50
- -
PF,S
Q
City
Bow
l (ex
cl.
Hig
gova
le)
R 7
50
- R 8
50
- R 1
000
-
- -
SQ
Rode’s Report 2018:3 140 Flats market
![Page 160: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/160.jpg)
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Op
enC
over
edLo
cku
pB
asem
ent
Bro
ker
Co
nt r
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
City
Cen
tre
- -
- -
--
- -
Wat
erfr
ont
- -
- -
--
- -
Woo
dsto
ck/O
bser
vato
ry-
- -
- -
- -
- Ron
debo
sch/
Ros
eban
k/Cla
rem
ont
R 6
00
- R 7
00
- R 8
00
- -
- SQ
Ken
ilwor
th/W
ynbe
rg/P
lum
stea
dR 4
75
R 1
25
R 6
25
R 7
5 R 7
50
R 0
-
- PF
,SQ
G
rass
y Pa
rk
- -
- -
--
- -
Mui
zenb
erg/
Kal
k Bay
/Fis
h H
oek
- -
- -
--
R45
0 -
PF
Hou
tbay
- -
- -
--
- -
Miln
erto
n San
ddri
ft
R 3
50
- R 5
50
- R 7
50
- -
- PF
M
ilner
ton
Roy
al A
scot
-
- -
- -
- -
- M
ilner
ton
Bur
gund
y Es
tate
-
- -
- -
- -
- Ta
blev
iew
- -
- -
--
- -
Park
land
s/San
dow
n/Sun
ning
dale
- -
- -
--
- -
Blo
uber
gstr
and
- -
- -
--
- -
Mel
kbos
stra
nd-
- -
- -
- -
- Ath
lone
- -
- -
--
- -
Gar
land
ale
- -
- -
--
- -
Ron
debo
sch
East
/Cra
wfo
rd
- -
- -
--
- -
Mitch
ells
Pla
in
- -
- -
--
- -
Bis
hop
Lavi
s -
- -
- -
- -
- M
onta
na/B
elha
r/Bel
har
Sou
th
- -
- -
--
- -
Pine
land
s-
- -
- -
- -
- Bro
okly
n/Rug
by/M
aitlan
dR 3
50
- R 4
00
- R 4
50
- -
- SQ
Rode’s Report 2018:3 141 Flats market
![Page 161: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/161.jpg)
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Op
enC
over
edLo
cku
pB
asem
ent
Bro
ker
Co
nt r
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
onte
Vis
ta/G
oodw
ood/
Paro
w/B
ellv
ille
Cen
tral
R 3
50
R 0
R 4
00
- R 5
25
R 2
5 -
- PF
,SQ
Tyge
r Val
ley
area
-
- -
- R 7
00
- -
- LA
D
urba
nvill
e-
- -
- -
- -
- Bra
cken
fell/
Kui
ls R
iver
R 2
00
- -
- R 6
00
R 1
50
- -
CIR
,PF
Som
erse
t W
est
R 2
75
- R 5
75
- R 8
00
- R 9
25
- JU
S
Str
and
R 2
00
- R 3
00
- R 6
00
- R 8
00
- JU
S
Gor
don'
s Bay
R 2
00
- R 3
00
- R 7
00
- R 8
00
- JU
S
Kra
aifo
ntei
n (e
xcl.
Buh
-Rei
n)
- -
- -
--
- -
Buh
-Rei
n Es
tate
-
- -
- -
- -
- Pa
arl
R 2
00
- R 2
50
- R 2
95
- R 2
95
- PR
U
Wel
lingt
on-
- -
- -
- -
- Cen
tury
City
- -
- -
--
- -
Ste
llen
bos
ch
Clo
etes
ville
- -
- -
--
- -
Ond
er P
apeg
aaib
erg
- -
- -
--
R 5
00
- RR
Sim
onsw
yk-
- -
- -
- R 3
50
- RR
Idas
Val
ley
- -
- -
--
- -
Uni
epar
k
- -
- -
--
- -
Kri
gevi
lle
- -
- -
--
- -
Dal
sig
- -
- -
--
- -
Kle
inge
luk
-
- -
- -
- -
- Pa
rady
sklo
of
- -
- -
--
- -
Rode’s Report 2018:3 142 Flats market
![Page 162: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/162.jpg)
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Op
enC
over
edLo
cku
pB
asem
ent
Bro
ker
Co
nt r
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
Kle
in W
elge
vond
en
R 1
80
- -
- R 3
00
- -
- M
HP
Nuu
tgev
onde
nR 1
50
- -
- -
- -
- M
HP
Noo
itge
dach
t Vill
age
R 2
50
- -
- R 5
00
- R 3
00
- M
HP
Cam
pus
– Cen
tral
R 5
00
- R 6
00
- R 1
000
-
R 7
00
- M
HP
Cam
pus
– W
est
- -
- -
--
- -
Cam
pus
– N
orth
-
- -
- -
- -
-
La C
ollin
e
- -
- -
--
R 3
00
- M
ER
Geo
rge
Hea
ther
Par
k -
- -
- -
- -
- H
eath
erla
nds
- -
- -
--
- -
Kin
g G
eorg
e Pa
rk
- -
- -
--
- -
Dor
meh
l's D
rift
-
- -
- -
- -
- G
eorg
e Sou
th
- -
- -
--
- -
Geo
rge
Cen
tral
-
- -
- R 4
80
- -
- BVF
Bo-
Dor
p-
- -
- -
- -
- D
enve
r Pa
rk
- -
- -
--
- -
Loer
ie P
ark
- -
- -
--
- -
Prot
ea P
ark
- -
- -
--
- -
Park
dene
- -
- -
--
- -
Bor
cher
ds-
- -
- -
- -
- La
waa
ikam
p-
- -
- -
- -
- Bal
lot's
Vie
w
- -
- -
--
- -
Her
olds
Bay
(ex
cl.
Oub
aai)
-
- -
- -
- -
- O
ubaa
i-
- -
- -
- -
-
Rode’s Report 2018:3 143 Flats market
![Page 163: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/163.jpg)
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Op
enC
over
edLo
cku
pB
asem
ent
Bro
ker
Co
nt r
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
P
ort
Eliz
abet
h
Sum
mer
stra
nd/H
umew
ood/
Sou
th
End
- -
- -
--
- -
Wal
mer
- -
- -
--
- -
Cen
tral
/Nor
th E
nd
- -
- -
--
- -
New
ton
Park
-
- -
- -
- -
- W
este
ring
- -
- -
--
- -
Kab
ega
- -
- -
--
- -
Alg
oa P
ark
- -
- -
--
- -
Lorr
aine
- -
- -
--
- -
She
rwoo
d-
- -
- -
- -
- Fa
irvi
ew-
- -
- -
- -
-
East
Lon
do
n
Sou
ther
nwoo
d/Q
uign
ey
Bea
ch/C
BD
-
- -
- -
- -
-
Ber
ea/V
ince
nt-
- -
- -
- -
- Cam
brid
ge/A
mal
inda
/Hav
en H
ills
- -
- -
--
- -
Gon
ubie
Par
k -
- -
- -
- -
- Bea
con
Bay
-
- -
- -
- -
- N
ahoo
n-
- -
- -
- -
- G
onub
ie-
- -
- -
- -
- Cov
e Roc
k -
- -
- -
- -
-
Blo
emfo
nte
in
Blo
emfo
ntei
n CBD
-
- -
- -
- -
- W
estd
ene
- -
- -
--
- -
Will
ows
- -
- -
--
- -
Nav
alsi
g-
- -
- -
- -
-
Rode’s Report 2018:3 144 Flats market
![Page 164: Rode’s Report 2018:3 · 2020. 4. 1. · E-mail: kobus@rode.co.za Website: Cover illustration Konrad Rode ... on the South African Property Market 2018:3 Rode’s Report 2018:3 i](https://reader035.vdocument.in/reader035/viewer/2022081618/609ce2633bbbd81534527e3a/html5/thumbnails/164.jpg)
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
18
:3
Op
enC
over
edLo
cku
pB
asem
ent
Bro
ker
Co
nt r
ibu
tors
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
Arb
oret
em-
- -
- -
- -
- La
ngen
hove
npar
k-
- -
- -
- -
- Bai
nsvl
ei-
- -
- -
- -
- U
nive
rsitas
- -
- -
--
- -
Pent
agon
Par
k -
- -
- -
- -
-
Kim
ber
ley
New
Par
k -
- -
- -
- -
- El
toro
Par
k -
- -
- -
- -
- H
illcr
est
- -
- -
--
- -
Pie
term
arit
zbu
rg
Woo
dlan
ds/N
orth
dale
/Bom
bay
Hei
ghts
/Ori
ent
Hei
ghts
/Alla
ndal
e -
- -
- -
- -
-
Cha
se V
alle
y/O
ak P
ark/
Cha
sede
ne/N
orth
ern
Park
-
- R 3
80
- R 5
00
- R 4
50
- H
N
Wem
bley
/Cla
rend
on-
- -
- -
- -
- Pi
eter
mar
itzb
urg
City
- -
R 3
00
- R 4
50
- R 4
00
- H
N
Pres
tbur
y
- -
- -
--
- -
Pelh
am/S
cott
svill
e/Ric
hmon
d Cre
st/
Bis
ley
-
- R 2
80
- R 3
50
- R 3
80
- H
N
Hay
field
s/Li
ncol
n M
eade
/Bel
levu
e/
The
Mea
dow
s -
- -
- -
- -
-
Van
der
bij
lpar
k Van
derb
ijlpa
rk C
entr
al
- -
- -
--
- -
Van
derb
ijlpa
rk C
E -
- -
- -
- -
- Van
derb
ijlpa
rk S
E -
- -
- -
- -
- Van
derb
ijlpa
rk S
W
- -
- -
--
- -
Van
derb
ijlpa
rk C
W
- -
- -
--
- -
Rode’s Report 2018:3 145 Flats market
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Rode’s Report 2018:3 146 House market
Chapter 10: House market
House prices disappoint
Kobus Lamprecht
In August 2018 national nominal house prices grew by 3,5% year on year ̶ the second consecutive month of slower growth as the market remains under pressure from weak demand. In the first eight months of 2018 house prices also grew by 3,5% compared to the same period in 2017, significantly slower than building-cost inflation (about 7%) and consumer inflation (4,5%). This implies that house prices have continued to decline in real terms.
An important driver of house prices is the nominal value of residential mortgages granted (see chart above). These two variables have a 50% positive correlation, in other words, 50% of the change in house price can be explained by the change in mortgages granted. However, this correlation does not consider any other variables like economic growth and interest rates, which are also determinants of house prices.
The nominal value of residential mortgages granted last year increased by 6%, after declining by 12% in 2016, outpacing house price growth of 4%. However, growth slowed to about 4% year on year in the first half of 2018.
This helps to explain the slow single-digit (3,5%) nominal house price growth expe-rienced thus far in 2018.
A significant driver of residential mortgages granted is the leading business cycle indicator of the SARB as shown in the chart. Growth in this indicator averaged 3,5% in the first half of 2018, in line with the growth in residential mortgages granted. However, growth slowed to only 2% in July.
We expect the growth in the value of mortgages granted to remain slow as effective demand from borrowers is held back by several factors:
1) A weak economy ̶ the economy fellinto a technical recession in thesecond quarter. However, mosteconomists still expect growth forthe full year of between 0,5% and1%.
2) It is unlikely that banks will relaxtheir credit criteria further inrespect of mortgage approvals.The reasons are still-high house-hold debt-to-disposable incomeratios and the subdued prospects
-20
-10
0
10
20
30
40
50
-60
-40
-20
0
20
40
60
80
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
House pricesMortgage loans (smoothed)
Change in new
mortgage loans
(%; y-o-y)
Cha
nge
in h
ouse
price
s(%
; y-
o-y)
Change in national house prices (FNB)vs
Change in value of new mortgage loans
Source of data: FNB; SARB
r²=0,5
-80
-40
0
40
80
120
-20
-10
0
10
20
30
98 00 02 04 06 08 10 12 14 16 18
Mortgage loans (smoothed)Business cycle leading indicator
Change in value of new residential mortgages grantedvs
Change in composite business cycle leading indicator
Cha
nge
in v
alue
of
mor
tgag
es g
rant
ed(%
; y-
o-y)
Change in business cycle indicator
(%; y-o-y)
Source of data: SARB
r²=0,5
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Rode’s Report 2018:3 147 House market
for employment. The ratio between household debt and disposable income has improved from its 88% peak in the first quarter of 2008, but in the second quarter of 2018 it was still very high at 71%.
3) High unemployment – in the sec-ond quarter of 2018 the officialunemployment rate stood at27,1%, up from 26,7% in the firstquarter. This shows the economyis still shedding jobs, with themanufacturing sector particularlyhard hit. About six million SouthAfricans are jobless (and seekingwork).
4) State of consumer finances –nominal take-home pay (asmeasured by BankservAfrica)grew by 10% year on year inAugust. The strong increase is notreflective of the “typical” salaryand is largely due to the delay ingovernment backdated salaryadjustments from the precedingmonths. Therefore it is highlylikely that salary growth will slowin the near term, particularly asconsumers come under increasingfinancial pressure due to severalfactors, most notably risinginflation. Inflation should pick updue to record-high fuel prices andthe weak rand, which is lifting theprices of imported goods.
5) The prospects of rising domesticinterest rates to contain inflation(mentioned above) and to attractor retain much-needed portfolioinvestment South Africa might loseto countries such as the USA,where interest rates are rising.
6) Sustained upward pressure onproperty running costs, such asproperty taxes (in certainmunicipalities) and utility prices.
As for recent nominal growth in house prices, Table 10.1 shows the yearly growth in prices in the major metros for the past five quarters as per Deeds Offices data. Cape Town still stands out above the other metros with growth of close to 9%, although growth has slowed over the past two years. The Atlantic Seaboard and Atlantis/Mamre (top and bottom ends of the market!) were the only major Cape Town regions not to beat inflation. The changes in house prices in the major Cape Town regions are provided in Table 10.2.
Johannesburg house prices grew by 3% in the second quarter. The “Diepkloof, So-weto, Meadowland, Pimville” region showed the strongest growth (17%). However, we have our doubts about the veracity of this growth rate. One possible explanation is the selling of new developments that push up the average prices. Most other areas recorded growth below inflation. The changes in house prices in the major Johannesburg regions are provided in Table 10.3. Note the constant meagre growth in Sandton.
Table 10.1 Change in nominal house prices by metros
% change on a year earlier Municipality 2017
Q2 2017 Q3
2017 Q4
2018 Q1
2018 Q2
City of Cape Town 13,2 12,0 10,8 9,7 8,7City of Joburg 2,9 2,3 2,2 2,4 3,0City of Ekurhuleni 3,6 3,5 3,4 3,2 2,9City of Tshwane 4,6 4,3 3,7 3,0 2,5City of eThekwini 5,6 4,7 3,6 2,5 N/ASource of data: FNB (Deeds Office data)
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Rode’s Report 2018:3 148 House market
Table 10.2 Change in nominal house prices in Cape Town by area
% change on a year earlier Area 2017
Q2 2017 Q3
2017 Q4
2018 Q1
2018 Q2
City Bowl 16,4 13,5 11,4 10,2 9,7 Southern Suburbs 12,8 11,6 10,2 8,6 7,4 Atlantic Seaboard 22,0 15,5 9,1 4,4 1,9 Bellville, Parow & Surrounds 10,5 11,5 11,9 11,7 11,2 Durbanville, Kraaifontein, Brackenfell 9,0 9,5 9,9 10,1 9,9 Somerset West, Gordon’s Bay, Strand 10,0 9,7 10,2 11,1 12,0 Blouberg, Milnerton, Melkbosstrand 14,3 14,3 13,5 12,1 10,2 Source of data: FNB (Deeds Office data)
Table 10.3 Change in nominal house prices in Johannesburg by area
% change on a year earlier Area 2017
Q2 2017 Q3
2017 Q4
2018 Q1
2018 Q2
Diepkloof, Soweto, Meadowland, Pimville
6,0 9,4 13,5 16,5 17,6
Midrand & surrounds 3,5 3,2 3,1 3,3 4,0 Randburg 3,1 2,7 2,4 2,4 2,5 Johannesburg South 2,9 2,3 2,2 2,4 3,0 Sandton & surrounds 1,1 0,5 0,4 0,8 1,6 Source of data: FNB (Deeds Office data)
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Rode’s Report 2018:3 149 Building activity and building costs
Chapter 11: Building activity and building costs
Poor prospects for building activity
Kobus Lamprecht
The building construction industry is undergoing a depressing time, with construction companies under increasing financial pressure due to weak demand. This chapter reports on the latest trends in building activity and building costs.
Building activity
Building activity, although improving slightly, remains lacklustre due to the weak economy and underperformance of property fundamentals, such as vacancy rates and market rentals. To analyse building activity, we delve deeper into the SARB’s measure of gross fixed capital formation (GFCF) and building data from Stats SA.
SARB’s measure of GFCF represents the real value of bricks and mortar being put in place. GFCF in the non-residential sector rose by 5% in the second quarter of 2018, the second consecutive quarterly increase, as can be seen in the chart on the right. We won’t get too excited about an upturn yet as most indicators in the sector are still not pointing to a recovery, while the first-half 2018 increase could be skewed by base effects after the dismal performance of previous years.
As for residential building activity, in the second quarter of 2018 the real value of bricks and mortar being put in place decreased by 1% on a year earlier. This was the second consecutive quarterly decline.
Note that GFCF reflects the ‘bricks and mortar’ being put in place in a specified period, for instance in a specific quarter or year.
Compare this statistic with buildings completed, which reflect, at the date of completion, the total building cost expected at the time when the building plans were passed by the municipality, which could be many years earlier. For instance, a building worth R100 million completed in 2017 could reflect GFCF amounting to R25 million being put in place in 2017, R50 million in 2016 and R25 million in 2015 (see the figure on the next page). Thus the ‘buildings com-pleted’ statistic is a lagging indicator – it reflects conditions in the property market that existed up to two or three years ago. This is especially true of non-residential building construction. In contrast, GFCF reflects a more recent occurrence and is therefore less of a lagging indicator, as it only reflects R25 million in 2017 in the example above.
-30
-20
-10
0
10
20
30
40
50
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Non-residentialResidential
Growth in real gross fixed capital formationResidential vs non-residential
Gro
wth
(%;
y-o-
y)
Source of data: SARB
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Rode’s Report 2018:3 150 Building activity and building costs
Source: Rode & Associates
With this as background, we now turn to Tables 11.1 and 11.2, which reflect building plans passed and buildings completed per square metre as reported by local government institutions (ex Stats SA).
Non-residential buildings completed increased by 7% in the 12 months to July 2018, with growth slowing considerably from the 18% recorded for the 12 months to March 2018. Office space completed skyrocketed by 42%, but bear in mind that this is a lagging indicator. Shopping space completed grew by only 10%, significantly slower than the 40% increase recorded for the 12 months to March 2018. Industrial space completed declined by 10%, after growth of 12% in the 12 months to March 2018. This highlights why industrial property recently performed better in terms of rentals and vacancy rates relative to office and retail property – the supply of industrial space is less speculative.
Non-residential plans passed declined by 6% in the 12 months to July 2018, following a decrease of 4% in the 12 months to March 2018. This decrease was mostly due to a 41% fall in office plans passed ̶ surely a relief for office property owners. Industrial property plans passed also declined. Shopping space plans passed bucked the overall trend with growth of 36%. The sharp increase is not good news for landlords of shopping centres, especially considering the already declining real trading densities and the weak outlook for retail sales. On the other hand, given the long gestation period of new shopping centres, the explanation for this phenomenon is that developers are betting on a strong cyclical recovery of the economy in the years to come. Hmm …
As Table 11.2 shows, residential buildings completed rose by 4% in the 12 months ended July 2018 ̶ a turnaround after a decrease of 5% in the 12 months to March 2018. This increase was driven by a mammoth 36% jump in completed flats and townhouses. Residential plans passed indicate that activity will likely be subdued in the medium term, except for houses smaller than 80 m². There is no doubt a trend towards smaller houses.
Noteworthy is that the first-half 2018 cost to construct houses smaller than 80 m² is the cheapest (R5 655/m²) of all the categories (as is to be expected), but has risen by 22% year on year. This cost pressure might slow the expected rise in smaller developments.
Table 11.1 New non-residential buildings (private sector) (m²)
% change on a year ago
Offices Shopping space Industrial buildings
Total
12 months ended July 2018 (% change on a year ago)
Completed 42,3% 10,4% -9,9% 7,0%
Plans passed -40,6% 36,3% -4,7% -5,7% Source of data: Stats SA
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Rode’s Report 2018:3 151 Building activity and building costs
Table 11.2 New residential buildings (private sector) (m²)
% change on a year ago
Smaller than 80 m²
Larger than 80 m²
Flats & townhouses
Total
12 months ended July 2018 (% change on a year ago)
Completed -27,0% -3,3% 36,2% 4,3%
Plans passed 10,2% -2,9% -8,0% -3,2% Source of data: Stats SA
The outlook for residential property building activity over the near term is poor as house prices are still declining in real terms. Prospects for the non-residen-tial property fundamentals are also lacklustre, especially for office and retail space, as these are constrained by current and expected vacancy rates, as well as the low level of market rentals relative to building costs. As a result, the outlook for non-residential building activity remains weak.
Building costs
Input costs of residential, commercial and industrial property (Haylett indices) increased by about 4-6% in the third quarter of 2018. These costs include labour, materials, plant and fuel but do
not include the profit margins of contractors. In comparison, tender prices (BER BCI), which include the profit margins of contractors, increased by only 2,9% year on year, slowing considerably from increases in the first (9,1%) and second quarter (7,3%) of 2018. This indicates that builders have had to trim their profit margins amid keen tendering competition in a weak demand environment. Throughout this report we used a smoothed version of the BCI to cater for volatility in the Index. The increase came to 4,2% for the third quarter of 2018.
Rode’s six-year forecast of building activity and costs, as well as other property-related variables, is provided in the Trends publication.
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Annexures
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Rode’s Report 2018:3 I Annexure 1
Glossary of property and related terms and abbreviations Arithmetic mean: The most often used measure of central tendency, it is the simple average of a number of observations. Mathematically, it is equal to the sum of all values divided by the number of observations. For example, the arithmetic mean of 6 and 7 is (6+7)/2. The arithmetic mean of 6, 7 and 8 is (6+7+8)/3; and so forth. Outlier observations may unduly affect the mean. In the Rode publications all references to the ‘mean’ or ‘average’ refer to the arithmetic mean, unless otherwise specified. See also geometric mean and median.
BER BCI: Bureau for Economic Research Building Cost Index. Measures pre-contract non-residential building-construction prices and as such it includes the profit margin of contractors. This index is one of the best indicators of the health of the building-construction industry. If it accelerates faster than input costs (measured by the Haylett Index), then contractors are stretching their profit margins as a result of sufficient work, and vice versa.
Building construction: the construction of buildings like houses, office blocks, factories, shopping centres, schools, hospitals. See also civil construction.
Bulk: Bulk square metres refer to the gross building area (GBA) of a building. According to The Sapoa Method for Measuring Floor Areas in Commercial and Industrial Buildings, GBA covers: “The entire building area, but it excludes patios, plant boxes, sun-screening, escape stairs, machine rooms, parking (basements or above ground), lift motor rooms, service rooms, caretakers’ flats, etc. GBA is mainly used by planning consultants in
order to plan and execute a building in accordance with the permissible Floor Area Ratio (F.A.R) as derived from the zoning of the property. GBA is fixed for the life of the building but it should be noted that different local authorities may interpret the National Building Regu-lations, which regulate the FAR definition, in a slightly different manner.” The market value of office and shopping-centre land is generally expressed as the value per bulk square metre.
Bulk head lease: A lease that is signed with one party, which then sublets the space to other tenants.
Capitalization rate: see Standard Capitalization rate
CBD: Central business district or downtown. This is an area of concentrated high economic activity. The user may want to differentiate between the metropolitan CBD (e.g. the Johannesburg CBD) and a decentralized CBD (like the Sandton CBD).
Civils: colloquial for civil construction.
Civil construction: the construction of physical infrastructure like roads, bridges, dams, the laying of storm water pipes, electricity and water reticulation. See also building construction.
Cluster housing [trosbehuising]: Attached or detached residences grouped together in a community, normally secured by a fence and a (guarded) gate. In the stricter sense of the word, to be called cluster housing, a complex has to have common recreation areas like a swimming pool or private nature area. This layout normally results in a higher
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Rode’s Report 2018:3 II Annexure 1
density than would be attained through a conventional subdivision layout. Tenure could be either full title (managed by a homeowners’ association) or sectional title (managed by a body corporate). See also Estate housing.
Cyclical trend: A short-term growth path of an economic variable. Normally refers to the business cycle, as distinct from a secular trend.
Dec: Decentralized. A Rode abbreviation. Town and regional planners differentiate between local decentralization (from the metropolitan CBD to the suburbs) and regional decentralization (to outlying areas of the country).
Deflation: Deflation occurs when prices are declining over time. This is the opposite of inflation and could be catastrophic. When the inflation rate (by some measure) is negative for a period, the economy is in a deflationary period. See also disinflation.
Deseasonalized: Seasonal fluctuations have been removed. In the case of retail sales, this is essential in order to be able to compare sales pertaining to different months of the year, as opposed to comparing sales of one quarter or month with the same quarter or month a year earlier.
Discount rate: The rate used to express an expected future cash stream in present-value terms. In most instances, the discount rate is equal to the hurdle rate. Mathematically, the hurdle rate of a property is the sum of its market capitalization rate plus the expected constant growth rate of its cash flow in perpetuity.
Disinflation: Disinflation occurs when the inflation rate is declining over time. See also deflation.
Escalation rate: The rate by which a rental is hiked once a year in terms of a lease. The ruling market escalation rate can be seen as an attempt by the market
to forecast the growth in market rentals over the duration of the lease, but this attempt is obviously rarely successful. Thus, it is important to differentiate between an escalated rental and a market rental.
Estate housing [landgoedbehuising]: It is similar to Cluster housing, except that common-area leisure facilities are not a requirement of the definition; not necessarily upmarket, although it does have an upmarket flavour.
Forward (income) yield: A bourse term, hence it is typically applied to listed properties. In the non-listed property market, its approximate equivalent is the capitalization rate. It represents the expected net income of year 1 (the following 12 months) divided by the current price/value. It stands to reason that existing leases would largely determine the net income of year 1. See also historic (income) yield.
Freehold title: The owner of the land enjoys free ownership in perpetuity (no land rental payable to a landlord) and can use the land for any purpose, albeit in accordance with the local regulations. Cf. Leasehold.
Full title (FT): The house or other type of building is part of an Estate or Cluster scheme and is built on a separate erf registered at the Deeds Office. The scheme is governed by a homeowners’ association rather than a sectional title body corporate. Thus, the term is used to distinguish it from Sectional title (ST). In theory, full-title homes could be built on Leasehold or Freehold land, although the former is unlikely in SA. It is, therefore, wrong to call ‘full title’ ‘freehold’, when it could in fact be full title on leasehold land; also, most, if not all, sectional title schemes are built on free-hold land.
Fundamental value (FmV): It is a subjective value based on the investor’s own, subjective forecast of rentals and maybe the investor’s unique or different in-house discount rate/capitalization rate.
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Rode’s Report 2018:3 III Annexure 1
An FmV higher than the more objective market value (MV) is a buy signal to an investor.
The calculation of the FmV is especially indicated where the economy, or property market, changes gear, e.g. a secular change in inflation rate or the real-rental cycle bottoming out. These are instances where any market is notoriously poor at forecasting trends.
An alternative term is intrinsic value.
Geometric mean: A measure of central tendency calculated by multiplying the series of numbers and taking the nth root of the product, where n is the number of items in the series. The geometric mean is defined only for sets of positive numbers. For example, the geometric mean of 6 and 7 is the square root of (6*7). The geometric mean of 6, 7 and 8 is the cube root of (6*7*8); and so forth. See also arithmetic mean and median.
Geometric mean return: It is also called the time-weighted rate of return or the average compounded rate of return. It is calculated by taking the geometric mean of a portfolio’s subperiod returns. Where there is a great variance in subperiod returns, this is a better return measure than the arithmetic mean return. Unlike the internal rate of return, it is not influenced by the timing and weights of money-flows.
Haylett index: A measure of the movement of all input costs in the building industry, most significantly material and labour costs. Other costs include plant and fuel. Designed to recompense the building contractor for in-contract rises in input costs. Does not include profit margins for contractors. Official designation: CPAP Haylett Formula (Work Group 180 & 181). Work Group 180 covers lump-sum domestic buildings and Work Group 181 entails industrial and commercial buildings. The Haylett index published in RR is obtained from the Medium-Term Forecasting Associates (MFA).
Historic or trailing (income) yield: A bourse term, hence it is typically applied to listed properties. It represents the net income of year 0 divided by the current price/value. See also forward (income) yield. In a market of rising net incomes, the historic yield would be expected to be lower than the forward yield.
Hurdle rate: The minimum total return (income yield plus expected capital appreciation) required by potential investors to induce them to invest in a property. Also known as the required rate. As such this is normally the correct rate to use when doing discounted cash flow (DCF) analyses. This is a similar concept to a company’s cost of capital, and it is not to be confused with the cost of money (say, overdraft interest rate). One way of measuring the total return on an investment, ex post or ex ante, is the internal rate of return (IRR) method. See also discount rate.
Index: Describes the method of standardizing the base for comparative data in a time series, usually equating the initial measure to 100 and then expressing all other data in exact relation to that base. For instance, the index for office rentals in any year by comparison with a base-year value of 100 might stand at 90 or 110, indicating a fall or rise of 10% respectively.
Inclusionary housing: A housing programme that, through conditions attached to land-use rights approvals, requires private developers to dedicate a certain percentage of new housing developments to low-income and low-middle-income households, or to households that may not otherwise afford to live in those developments. Source: City of Johannesburg, Inclusionary Hous-ing: Proposed Amendments, 2 August 2018
Industrial-building grades: Prime: An industrial property in
which space is easily lettable because
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Rode’s Report 2018:3 IV Annexure 1
it satisfies each of the followingprerequisites:
a. Generally, in a good condition;b. Satisfactory macro access (i.e.
access to freeway);c. Satisfactory micro access (i.e.
from street to building);d. Proper loading facilities;e. Eaves >4 m (excluding micro/ mini
units);f. Wide clear span of trusses (few
internal pillars);g. On ground level;h. Adequate three-phase electrical
power.
The eight conditions above are pre-requisites for space to be considered prime. However, a building may possess additional enhancements that could improve lettability through increasing the size of the potential tenant pool.
Such enhancements could include sufficient office accommodation, ade-quate parking, sprinkler systems, masonry up to sill height, adequate floor loadings, roof insulation and suf-ficient yard space.
Secondary: This is industrial spacewhich is not classifiable as primebecause it does not satisfy all eightprerequisites for prime space listedabove. Such space is typically oldbuildings or structures, which havebeen haphazardly renovated. It wouldhave poor access, too little yard spaceor office accommodation, inadequategoods lifts, no three-phase power andobsolete electrics and ablutionfacilities. Such space is often (but notexclusively) found in highly urbanisedareas.
Industrial park: An industrial park is a multi-tenanted complex of industrial build-ings, typically surrounded by a security fence with access control and possibly some greenery.
Initial yield: The first year’s expected net operating income (based on existing leases and other income reasonably expected) divided by the purchase price. Therefore, the initial yield and the capitalization rate are only the same in those rare cases where a building is let at open-market rentals.
Internal rate of return (IRR) [interne rentabiliteit]: A performance measure-ment that takes cognisance of the time-value of money. Technically, it is that rate which equates the inflows with the outflows of a cash flow. Also known as the money-weighted rate of return because the timing and weights of the money-flows influence the return. Cf. geometric mean re-turn.
JSE: JSE Securities Exchange South Africa.
Labour tenant: A person who works on a commercial farm in exchange for the right to live on that farm without compensation, as well as the right to work a portion of that farm for himself.
Leaseback: A fully repairing and insuring lease (tenant pays all operating costs) for 10 years or longer (with typically 5-yearly rent reviews or fixed annual escalations) with a tenant with a strong covenant.
Leasehold land: The leaseholder (land-lord) grants the Lessee a long lease on the land (in South Africa, typically 40-99 years), in exchange for which the tenant pays a rent stream to the landlord. At expiry of the lease, the land (together with the improvements) reverts to the leaseholder. This type of tenure is not common in South Africa, but since 1994 the government seems to prefer it when disposing of state land. Cf. Freehold.
Comparative grading nomenclature of industrial and office space Industrial OfficesPrime + APrime BPrime - CSecondary D
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Rode’s Report 2018:3 V Annexure 1
Lessee: A tenant to whom space or land is rented under a lease. Cf. Lessor.
Lessor: A landlord that lets space to another under a lease. Cf. Lessee. Market rental: The most probable rental that a voluntary, informed and prudent lessee will pay a voluntary, informed and prudent lessor in a normal open-market (arms-length) transaction, when neither party is under any compulsion to rent or let, other than their normal desire to transact. As per IVS 2011 – the estimated amount for which a property would be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion
Market value: Market value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion. [Source: Intern-ational Valuation Standards Committee, 2003]
The MV is an objective value in that the crucial value determinants are largely derived from the marketplace. See also price and fundamental value.
As per IVS 2011 – the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.
Mean: See arithmetic mean; median; geometric mean.
Median: Midpoint of a series of ob-servations when arranged in order of magnitude. Thus, it is a measure of central
tendency that divides the data set into halves. Less affected by outlier ob servations than the arithmetic mean. For example, the median of 5, 6, 7, 8, 9 is 7. And for 5, 9, 15, 16, 17, 21, 23 themedian is 16. Cf. geometric and arithmetic mean.
Metro: Metropolitan.
MFA: Medium-Term Forecasting Assoc-iates, building-construction economists located in Stellenbosch.
n: Number of respondents.
N/A: Not available — fewer than two respondents.
NNN lease: Also known as a triple-net lease. A fully repairing and insuring lease (tenant pays all operating costs). The commonest example is a Leaseback.
Office-building grades defined by quality of finishes and facilities (not location):
Grade A+: Generally, new, top-quality,modern buildings; ample parking; apace-setter in establishing rentals, aprestigious lobby finish. A minimum 4-star rating by GBCSA is a prerequisite.
Grade A: Generally, not older than 10years, unless renovated; high-qualityfinishes; adequate on-site parking; air-conditioning.
Grade B: Generally, 10 to 20 years old,unless renovated; accommodation tomodern standards; air-conditioning; on-site parking.
Grade C: Generally, 20 to 30 years old,unless renovated; in fairly goodcondition, although finishes are not up tomodern standards; may have some on-site parking; unlikely to be centrally air-conditioned.
Grade D: A building reaching the end ofits functional life but can be used forstorage; old and in poor condition; nearthe bottom of the rental rate range;typically, no air-conditioning and no on-site parking; may have good location.
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Rode’s Report 2018:3 VI Annexure 1
These grades might be further sub-divided into sub-grades, viz. A-, B+, B-, C+ or C- for purposes of fine-tuning market rental rates.
In every issue of Rode’s Report (RR), we reflect rentals for the following sub-grades:
A+ Reported in RR tables A Reported in RR tables A-
B+ B Reported in RR tables B-
C+ C Reported in RR tables C-
Sub-grades not reported on, can be established by straight-line interpolation.
This schema has been appearing in Rode’s Report since 1995. At a later stage, Sapoa (following the Australian example) changed the name of grade A+ to P grade (for ‘premium’). As the reader will see, the P-name does not fit in with the above schema, and for this reason, we did not follow the Sapoa nomenclature.
The vigilant reader will notice that, in contrast to Sapoa, we do not include ‘location’ as a determinant of grading. Our point of departure is that the grading should only reflect quality of finishes and facilities. However, location does of course play a role in determining market rental rates, which is why we in RR we report on market rental rates by node (and grade).
Office demand: Office stock less office space vacant (space on the market for renting irrespective of whether there is still a valid lease over the space). In other words, demand is office space occupied.
Office stock: Total rentable office space.
Office take-up: Change in office demand. Where take-up is positive, it can also be called the growth in demand.
Office vacancies: This is the floor area available for leasing at any given time,
irrespective of whether there is still a valid lease over the space. Often expressed as a percentage of the stock in rentable m².
Operating costs: See outgoings. Opportunity cash flow (OCF): A valuation term introduced by Rode. The OCF quantifies the amount gained or foregone by the landlord in that the property is either over rented or under rented. More precisely, for each lease and the space that such a tenant occupies, it is, until expiry of such a lease, the present value (PV) of the contractual rental less the open-market rental (as at the valuation date) escalating at the open-market escalation rate (as at the valuation date).
Outgoings (operating costs): In the case of office buildings, the following items are included under total gross outgoings, irrespective of who pays for these: Repairs & maintenance. Cleaning. Security. Management (excluding head office
overheads). All leasing expenses: broker’s
commission and in-house payroll,advertising, tenant installations &relocations (unless recovered), buy-outs, etc.
Municipal tax. Insurance (fire & SASRIA). In the case
of self-insurance, the market averageshould be included.
Refuse & sewerage less recoverableamount.
External & common area repairs &maintenance.
Audit fees.
THE FOLLOWING ITEMS ARE EXCLUDED:
VAT. Head office overheads. Tenant’s own electricity and water. Tenant installations/relocations
recovered. Internal maintenance. Recoverable refuse & sewerage.
Price: The amount actually paid for an
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Rode’s Report 2018:3 VII Annexure 1
asset. Not the same as market value, because special circumstances may have applied when the transaction was con-cluded (cf. the definition of market value).
PLS: Property loan stock, also known as variable loan stock (VLS) (type of listed property fund). (historic)
PUT: Property unit trust (type of listed property fund). (historic)
REIT: A REIT is an entity that invests primarily in real estate and qualifies for special tax status in that there is single taxation at the end-investor (not the fund) level. The Dutch term ‘ fiscale beleggings-instelling’ (FBI) stresses the tax characteristic. The FBI is the world’s oldest fiscally transparent investment structure for property (since 1969). Source: https://www.vastgoedmarkt.nl, published 16/11/2017.
Rental:
Basic rental (base rental in theUSA): A set amount used as aminimum rent in a lease which alsoemploys a percentage of turnover orother allocation for additional rent.
Gross rental: The total rental payableby the tenant, excluding VAT, thetenant’s own electricity and watercharges, but including other operatingcosts recovered by the landlord (ifany), as well as promotion expensespayable by the tenant in the case ofshopping centres. See also rental,net.
Net rental: The amount payable bythe tenant, excluding VAT andexcluding operating costs recoveredby the landlord (if any). See alsorental, gross.
Nominal rental: This has a dualmeaning:o Firstly, it refers to rentals where
the analyst or valuer assumes noincentives like a rent-free period,free relocation, cash upfront, or
o balance-of-installation allowance. It also excludes amortisation of tenant-installation costs.
o Secondly, it can also mean actualrental values (i.e. not deflated).See also rental, real.
Parking types: Detached open parking: parking bay is
detached from the main building andwith no cover
Detached shade-net parking: parkingbay is detached from the main buildingwith shade-net cover
Detached covered parking: parkingbay is detached from the main buildingand has a solid roof
Structured parking: parking formsinherently part of a structure (forinstance, the main building). It couldbe in the basement, in an abuttingparkade or on the rooftop (where itcould be open or covered).
Pioneer rental: The highest rentalactually achieved – and could be aonce-off outlier deal; hence “pioneer”is not “market”. The differencebetween pioneer and the highestmarket rentals may be used as a blunttool to gauge the prospects for marketrental growth in the short term. If thedifferential is positive, it is anindication of growth prospects in thenode. If the differential is negative, itis an indication that landlords arefinding it difficult to find new tenantsat the asking rental rate.
Real rental: Deflated rental, typicallyobservations (values) over time (atime series) from which the relevantinflation has been removed. See alsorental, nominal.
Rent-free period: No rent is payable by the tenant for an initial portion of the term of a lease. It is offered by a landlord as a rental concession to attract tenants. Measure the rent-free period at the start of beneficial occupation.
Required rate: see hurdle rate.
Retail price: In the context of property syndication, this means the price at which a property-holding company’s shares are
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Rode’s Report 2018:3 VIII Annexure 1
sold to the public or the price at which these shares trade. See also wholesale value.
RR: Rode's Report on the South African Property Market, a quarterly journal for the professional property practitioner.
Sapoa: South African Property Owners Association.
SARB: South African Reserve Bank (viz. the central bank)
Sectional title: A type of property ownership method whereby ‘sections’ of a building, or a complex of buildings, are created to allow for each ‘section’ of the building to be individually owned. In Australia it is known as ‘strata title’, and in North America and Europe as ‘condo-minium’ (condo) (also, Eigentumswoh-nung in Germany).
Secular trend: A long-term growth path of an economic variable, around which there might be short-term (business cycle) or other fluctuations. See also cyclical trend.
Shopping-centre configurations: Mall: Typically enclosed with common
walkway between two facing strips of stores. This is the design mode for super regional, regional and most community shopping centres.
Strip centre: Is an attached row ofstores or service outlets managed as a coherent retail entity, with on-site parking, usually located in front of the stores. Store-fronts may be connected by open canopies, but there are no enclosed walkways linking the stores. Store configuration is either a straight line, “L” or “U” shaped. This is the design mode for most neighbourhood, convenience and value (USA: power) centres.
Shopping centre types:
Super regional: More than 100.000rentable m² of shop space; substantial
comparison-shopping; principal tenants are three or more major department stores; more than 250 shops. Examples are: Eastgate and Sandton City (Johannesburg); Menlyn Park (Preto-ria); Gateway (Durban metro); Canal Walk (Cape metro).
Regional: 30.000-100.000 rentable m²of shop space; principal tenant(s) areone or more major department stores;approximately 40-250 shops. Examplesare: Westgate, Fourways Mall, Cresta(Johannesburg); Brooklyn Mall(Pretoria); The Pavilion (Durbanmetro); Sanlam Centre in Parow, TygerValley, Kenilworth (Cape metro);Greenacres (Port Elizabeth); MimosaMall (Bloemfontein); Vincent ParkShopping Centre (East London).
Community: 10.000-30.000 rentablem² of shop space; the principal tenanttypically is a variety store (e.g. Clicks)or a discount department store (e.g.Dion or Game); approximately 30 to 60shops. Examples are: Sunnypark(Pretoria); Musgrave Centre (Durban);Middestad Mall (Bellville CBD),Constantia Village (Cape metro);Constantia Centre (Port Elizabeth);Brandwag Centre (Bloemfontein);Beacon Bay Retail Park (East London).
Neighbourhood: 3.000-10.000 rentablem² of shop space; the principal tenantis a supermarket; 15-40 shops.
Convenience: 300-1.200 rentable m²of shop space; the principal tenant is acafé or grocer like Kwik Spar; 5-15shops.
Retail warehouse: Stand-alone; singletenant; >10.000 m²; air-conditioned,no ceiling, warehouse-like finishes, e.g.Makro, Hypermarket, Game, Dion.
Value centre: Multi-tenanted stripcentre; >10.000 m²; warehouse typefinishes in order to deliver lower pricesto consumers.
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Rode’s Report 2018:3 IX Annexure 1
20
30
40
50
60
70
80
90
93 94 95 96 97 98 99 00 01 02
A graphic portrayal of a rental time seriesQuarterly frequency
R/m
² p
er m
onth
Smoothing: Removal of shorter-term fluctuations in a time series, by e.g. moving averages, exponential smoothing, or curve fitting.
Standard capitalization rate: It is the expected net operating income for year 1, assuming the entire building is let at open-market rentals, divided by the purchase/ transaction price, normally expressed as a percentage. This calculation ignores VAT, transfer duty and income tax, and assumes a cash transaction (in contrast to a paper-based sale).
Standard deviation (SD): A measure of dispersion in a set of data. For instance, assume a normal distribution of ob-servations and a mean of R10 and an SD of R1,50. This means there is a 68% chance the values will lie between R10- R1,50=R8,50 and R10+R1,50=R11,50.
Stats SA: Statistics South Africa, South African government’s statistics depart-ment. Previously known as Central Stat-istical Services (CSS) and even earlier as the Department of Statistics.
Through rate: Where a property consists of various components (for example office and industrial space) the through [rental] rate is the weighted average rental rate of these components.
Time series [tydreeks]: A set of observa-tions for the same variable at regular intervals (see graph). The intervals or frequencies may be of any length, e.g. years or quarters for national-income or property data, monthly for prices, and weekly, daily, or even minute-by-minute for stock exchange prices.
Total return: Normally measured over a year, in which case it is the income yield for the applicable year (net income in year 1 divided by the purchase price or value in year 0) plus the change in capital value over that year. Also known as the combined return because it combines the income yield and capital return in one measure.
Town house [meenthuis]: A modern town house has a small footprint on multiple floors, for instance a duplex. In the UK it is known as a terraced house. Town houses are often found in cluster complexes. Historically, it was the (small) house of the landed gentry in town. Cf. in Afrikaans tuishuis/ dorpshuis, a small house in town where farmers used to stay for Nagmaal (Communion).
Triple-net lease: see NNN lease.
VAT: value-added tax.
Wholesale value: In the context of property syndication, this means the estimated price that a share or shares of a syndicated property-holding company would fetch (excluding winding-up costs) should the holding company be dissolved and the underlying property sold as a normal, non-syndicated property. See also retail price.
Year-on-year (y-on-y) growth: Rate by which a figure has changed compared to a year earlier.
Year 0: Refers to the year ended at the present time.
Year 1: Refers to the period from year 0 to the end of the first year thereafter.
References:
1. International Council of ShoppingCentres
2. Sapoa3. Bureau of Market Research, University
of South Africa4. International Valuation Standards,
2017
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Rode’s Report 2018:3 Annexure 2X
Technical background to the Rode surveys Rode has been surveying the crucial variables of the property market in South Africa since the beginning of 1988 using the expert-panel method. Broadly speaking, the researcher has two potential approaches available to him. These are:
o Track actual transactions, like therental levels of lettings or thecapitalization rates at which sales areconcluded. Valuers (appraisers) callthese ‘comparables’.
o The expert-panel method of surveying,in which the surveyor regularly asks thesame individual members of the panelfor their expert opinions, which in turnwill of course be based on actual dealsof which the panellists are aware.
The cons of tracking actual transactions are:
o A paucity of transactions in most nodes,making statistical inferences impossible.
o Hence the danger of relying on outlierdata (mainly the result of smallsamples)
o Dated transactions
o The cost
o The unwillingness of the parties toreport the details of individual deals.
In contrast, through the expert-panel method of research, most of the above cons of the actual-transactions approach are addressed through opinion surveys. This results in cheaper, more accurate and timely information. Sample size is still (and
will always be) a problem in some of the less active nodes, but to a lesser extent.
Below we give the reader some insight in our survey approach to determine the levels of the various property variables:
Capitalization rate: The Rode capital-ization rate panel consists of two categories of panellist — major owners, and leading investment brokers who know their market segments intimately. This means that the latter's knowledge is based on actual sales. The question put to these carefully chosen panellists is:
Owners/Brokers: “In your opinion, what is presently the capitalization rate at which your organization is equally happy to buy or sell the properties in the cities below? (Assume a typical location and a cash sale, rather than paper.). For leasebacks, assume the escalation rate reported by you in this questionnaire.”
Escalation rate (for industrial lease-backs). The question put to the panellists is:
Owners/Brokers: “In your opinion, what is the current prevalent (i.e. most often achieved) market escalation rate for prime industrial leasebacks (assume the market capitalization rate you provided in this questionnaire)?”
Office rentals: The Rode office rental survey asks respondents to supply average market rentals by grade (grades A+, A, B & C) for a specific office node.
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Rode’s Report 2018:3 XI Annexure 2X
“In your opinion, what is presently the nominal gross achievable/market rental (not asking rent, not escalated contractual rents, not exceptional deals) per rentable m² excluding VAT?” The questionnaire also asks for the typical rent-free period in months, the gross current-year operating costs per rentable m² and the predominant escalation rate on net & gross rentals, and operating costs.
‘Nominal’ rental means the panellist has to assume no incentives like a rent-free period.
Industrial rentals: The question put to panellists is:
“In your opinion, what are the current gross achievable/market rentals per m² (NOT asking rent, NOT exception deals, NOT escalated contractual rents) for prime industrial buildings for the industrial nodes and floor-area sizes indicated below? (Exclude VAT.)”
The assumed floor area sizes are: 250 m², 500 m², 1 000 m², 2 500 m² and 5 000 m². Respondents are also asked to fill in their vacancy estimate for prime industrial space, using a scale of 1 to 9. See the table below for detail on the vacancy scale.
Vacancy scale for industrial townships
<10% 10 – 20% >20%
1 2 3
Low
4 5 6
Medium
7 8 9
High
Thus, the reported vacancies do not represent percentages.
Industrial land values: The question put to panellists is:
“In your opinion, what are the current market values per m² (NOT asking price, NOT exception deals) for vacant, serviced levelled stands in the industrial nodes and and for the stand sizes indicated below? Exclude transfer costs and VAT. Provided you are well informed, please give us your opinion even though you might not have concluded a sale for the exact sizes.”
The information is required for stand sizes of 1’000 m², 2’000 m², 5’000 m² and 10’000 m².
Flat rentals: The question put to panellists is:
“In your opinion, what are the current market rentals (not asking rent) for new lettings for uncontrolled standard and upmarket flats in the following categories and areas? The rental data required is for unfurnished flats, excluding water and electricity. Parking is typically included.”
Respondents are asked to provide rentals for bachelor, 1-, 2- and 3-bedroom units. Note that the flat rentals are not quoted per m²
The question put to the panellists is:
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Rode’s Report 2018:3 XII Annexure 3
How to interpolate industrial rental rates and land values The industrial rental and land value tables in the body of the RR contain regression equations in natural log (ln) form in order to allow the reader to interpolate rental rates or industrial land values for area sizes other than those given in the tables. (All references below are to the industrial rental tables. However, they also apply mutatis mutandis to the industrial land value table.)
The regression equations are in natural log (ln) form because the relationship between the rental rates and area sizes leased, is curvilinear. This means that the rental rate for area sizes other than those quoted cannot be calculated by straight linear interpolation. In order to calculate the rental rate for an area size other than those quoted, use the following equation from the tables:
ln Y = a + b(ln X), where: ln Y = the natural log of the rental rate, i.e. the value which we want to calculate. ln X = the natural log of the applicable floor area in m² for which we want to calculate the market rental rate.
Note that a and b are given in the table. The coefficient of determination r2 is an indication of the goodness of fit of the curve, i.e. how much confidence we can put in the interpolation we want to perform. An r2 close to 1 is a good fit.
An example:
Interpolate a rental rate for an area size other than those quoted in the table — e.g. for an area of 750 m². Use your financial calculator and proceed as follows:
Assume the following equation: ln Y = 3,8855 — (0,2263 (ln X)) where X = 750 m².
Step 1: Calculate the natural log of X, viz. the floor area for which you want to interpolate the market rental rate. The natural log of a floor area of 750 m² is 6,6201 (use the ln key of your financial calculator).
Thus:ln Y = 3,8855 — (0,2263 (6,6201))
= 3,8855 — 1,4981 = 2,3874
Step 2: In order to calculate Y, get the exponential of ln Y (viz. of 2,3874) by using the ex key on your financial calculator. The answer is R10,89 per m².
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Rode’s Report 2018:3 XIII Annexure 4
Approximate building cost rates as at 1 July 2018 Source: AECOM AFRICA PROPERTY AND CONSTRUCTION COST GUIDE 2018
This section provides a list of approximate inclusive building cost rates for various building types in South Africa.
Rates are current to 1 July 2018, and therefore represent the average expected building cost rates for 2018. It must be emphasised that these rates are indicative only, and should be used circumspectly, as they are dependent on upon several assumptions. The area of the building expressed in m² is equivalent to the ‘Construction Area’ where appropriate, as defined in the ‘Method for Measuring Floor Areas in Buildings, Second Edition’ (effective from 7 November 2007), published by the South African Property Owners Association (SAPOA).
Construction cost normally vary between the different provinces of South Africa. Costs in parts of the Western Cape and KwaZulu-Natal, specifically upper-class residential, for example, are generally significantly higher than in Gauteng due to the demand for this type of accommodation. Rates have, therefore, been based on data received from Gauteng, where possible. Be mindful that cost differences between provinces at a given point in time are not constant, and may vary over time due to differences in supply and demand or other factors.
Rates include the cost of appropriate building services, e.g. air-conditioning, electrical, etc. but exclude costs of site infrastructure development, parking, any future escalation, professional fees and value-added tax (VAT).
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Rode’s Report 2018:3 XIV Annexure 4
Building rates Rates include the cost of appropriate building services, e.g. air-conditioning, electrical, etc. but exclude costs of site infrastructure development, parking, any future escalation, professional fees and VAT. Offices 1. Low-rise office park development with standard
specification /m² R7.700 – R9.500
2. Low-rise prestigious office park development /m² R10.000 – R14.800 3. High-rise tower block with standard specification /m² R11.100 – R14.800 4. High-rise prestigious tower block /m² R14.800 – R18.600
Note: Office rates exclude parking and include appropriate tenant allowances incorporating carpets, wallpaper, louvre drapes, partitions, lighting, air-conditioning and electrical reticulation.
Parking 1. Parking on grade, including integral landscaping and
ground preparation /m² R500 – R600 2. Structured parking /m² R3.800 – R4.100 3. Parking in semi-basement /m² R4.100 – R5.600 4. Parking in basement /m² R4.400 – R6.800
Retail 1. Local convenience centres (not exceeding 5.000m²) /m² R7.600 – R10.000 2. Neighbourhood centres (5.000m² - 12.000m²) /m² R8.200 – R10.500 3. Community centres (12.000m² - 25.000m²) /m² R9.000 – R11.600 4. Minor regional centres (25.000m² - 50.000m²) /m² R10.000 – R12.300 5. Regional centres (50.000m² - 100.000m²) /m² R10.500 – R12.800 6. Super regional centres (exceeding 100.000m²) /m² R11.100 – R14.400
Note: Super regional centres and regional centres are generally inward trading with internal malls, whereas convenient, neighbourhood and community centres are generally outward trading with no internal malls. Retail rates include the cost of tenant requirements and specifications of national chain stores. Retail costs vary considerably depending on the tenant mix and sizing of the various stores.
Industrial Industrial warehouse, including office and change facilities within the structure area:
1. Steel frame, steel cladding and roof sheeting (light-duty) /m² R3.800 – R5.600
2. Steel frame, brickwork to ceiling, steel cladding aboveand roof sheeting (heavy-duty) /m² R4.400 – R6.300
3. Administration offices, ablution and change room block /m² R7.200 – R9.100 4. Cold storage facilities /m² R13.300 – R19.000
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Rode’s Report 2018:3 XV Annexure 4
Residential
1. Site services to low-cost housing stand (250m² -350m²) /site R33.100 – R50.600
2. RDP housing /m² R1.900 – R2.200 3. Low-cost housing /m² R2.900 – R5.000 4. Simple low-rise apartment block /m² R7.100 – R9.800 5. Economic duplex townhouse /m² R7.100 – R10.100 6. Prestige apartment block /m² R13.400 – R20.800 7. Private dwelling houses:
Economic /m² R5.000 Standard /m² R6.300 Middle Class /m² R7.600 Luxury /m² R10.800 Exclusive /m² R17.000 Exceptional (‘Super luxury’) /m² R26.000 – R54.000
8. Outbuildings /m² R3.600 – R5.100 9. Carport (shaded):
Single /no. R4.300 Double /no. R8.300
10. Carport (covered): Single /no. R6.800 Double /no. R12.400
11. Swimming pool Not exceeding 50kl /no. R90.000
Exceeding 50kl and not exceeding 100kl /no. R84.000 – R148.000
12. Tennis court
Standard /no. R368.000 – R500.000
Floodlit /no. R442.000 – R632.000
Hotels 1. Budget /key R1.000.000 – R1.500.000 2. Mid-scale (3 Star) /key R2.000.000 – R2.500.000 3. Upper scale (4 Star) /key R2.500.000 – R3.500.000 4. Luxury (5 Star) /key R3.500.000 – R4.500.000
Note: Hotel rates exclude allowances for furniture, fittings and equipment (FF&E).
Studios 1. Studios: dancing, art exhibitions, etc. /m² R13.300 – R19.000
Conference Centres 1. Conference centre to international standards /m² R23.900 – R31.000
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Rode’s Report 2018:3 XVI Annexure 4
Retirement Centres 1. Dwelling house
middle class /m² R7.900 luxury /m² R11.100
2. Apartment block middle class /m² R8.100 luxury /m² R12.600
3. Community centre middle class /m² R10.600 luxury /m² R15.600
4. Frail care /m² R12.600 Schools 1. Primary school /m² R6.300 – R7.300 2. Secondary school /m² R7.500 – R8.000 Hospitals 1. District hospital /m² R26.000 Note: Hospital rates exclude allowances for furniture, fittings and equipment. Stadiums 1. Stadium to PSL standards /seat R33.000 – R50.000
2. Stadium to FIFA standards /seat R75.000 – R100.000
3. Stadium pitch to FIFA standards /pitch R21.000.000 – R25.300.000
Prisons
1. 1.000 Inmate prison /inmate R563.000 – R599.000
2. 500 Inmate prison /inmate R599.000 - R670.000
3. High/maximum security /inmate R894.000 – R1.197.000
Infrastructure airport development costs Rates exclude any future escalation, loss of interest, professional fees, VAT and ACSA direct costs. Apron stands (incl. associated infrastructure)
1. Code F stand (85m long x 80m wide =6.800m²) /m² R4.800
2. Code E stand (80m long x 65m wide =5.200m²) /m² R5.100
3. Code C stand (65m long x 40m wide =2.240m²) /m² R6.400
Taxi lanes (incl. associated infrastructure) 1. Code F taxi lane (101m wide) /m R159.000 2. Code E taxi lane (85m wide) /m R134.500 3. Code C taxi lane (49m wide) /m R78.000
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Rode’s Report 2018:3 XVII Annexure 4
Service roads 1. Service road (10m wide) /m R16.500 2. Dual carriage service road (15m wide) /m R21.100 Taxi ways (incl. associated infrastructure) 1. Code F taxi way (70m wide) /m R114.000 Runways (incl. associated infrastructure)
1. Code F runway (3.885m long x 60m wide =233.100m²) /m R265.000
Parking (excl. bulk earthworks) 1. Structured parking /bay R175.000 2. Basement parking /bay R267.000 Perimeter fencing/ Security gates
1. Security walls with perimeter intrusion detection(PIDS), etc. /m R8.100
2. Security gate /no. R15.300 3. Super security gate /no. R45.800 Terminal & other buildings (excl. bulk earthworks, external site & services works)
1. Terminal building (excl. terminal buildingbaggage & X-ray) /m² R27.100
2. Pier terminal building (excl. telescopic airbridges, seating & aircraft docking system) /m² R28.400
3. Telescopic air bridges /unit R10.395.000 4. Aircraft Docking System /unit R1.525.000
Building services Electrical installation 1. Office buildings — standard installation /m² R550 – R750 2. Office buildings — sophisticated installation /m² R750 – R1.000 3. Office buildings – UPS, substations, standby generators /m² R350 – R500 4. Residential /m² R500 – R750
5. Shopping centres /m² R750 – R1.000
6. Hotels /m² R850 – R1.150
7. Hospitals /m² R1.200 – R1.600
Electronic installation
1. Offices - standard installation /m² R350 – R500
2. Offices – sophisticated installation /m² R500 – R700
3. Residential /m² R300 – R450
4. Shopping centres /m² R700 – R900
5. Hotels /m² R650 – R850
6. Hospitals /m² R700 – R900 Note: Electronic installation include access control, CCTV, public address, fire detection, data installation, WiFi, CATV, PABX (Private Automatic Branch Exchange) and Building Management Systems (BMS). Fire protection installation 1. Sprinkler system including hydrants and hose
reels (excluding void sprinkler) /m² R250 – R350
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Rode’s Report 2018:3 XVIII Annexure 4
Air-conditioning installation
1. Ventilation to parking/services areas /m² R400 – R550
2. Office buildings: console units /m² R750 – R950
3. Office buildings: console/split units /m² R900 – R1300
4. Office buildings: package units /m² R1.200 – R1.800
5. Office buildings: central plant /m² R1.750 – R2.750
6. Office buildings: Variable Refrigerant Flow /m² R1.600 – R2.750
7. Residential: split units /m² R900 – R1.400
8. Shopping centres: split units /m² R1.000 – R1.400
9. Shopping centres: package units /m² R1.200 – R1.800
10. Shopping centres: evaporative cooling /m² R750 – R1.100
11. Hotels: public areas /m² R1.750 – R2.750
12. Hospitals central plant /m² R2.250 – R3.550
13. Hotels: console units /key R19.000 – R26.000
14. Hotels: split units /key R26.000 – R40.000
15. Hotels: central plants /key R60.000 – R85.000
16. Hospitals: operating theatres /theatre R500.000 - R800.000
Notes
1. Regional variations: Construction costs normally vary between the different provinces ofSouth Africa. Costs in the Western Cape and KwaZulu-Natal, specifically upper classresidential, for example, are generally significantly higher than Gauteng due to the demandfor this accommodation.
2. Value added tax (VAT): As the majority of developers are registered vendors in the propertyindustry, any VAT on commercial property development is fully recoverable. Therefore, toreflect the net development cost, VAT should be excluded. Should the gross cost (i.e. afterVAT inclusion) be required, the VAT at the ruling rate (currently 15%) should be added.
Cognizance should be taken, however, of the effect of VAT on cash flow over a period oftime. This will vary according to the payment period of the individual vendor. In all cases,however, it will add to the capital cost of the project to the extent of interest on outstandingVAT for the VAT cycle of the particular vendor.
3. For guidance with regard to the cost of buildings rated under the Green Star South Africarating tool system, see the latest edition of the AECOM publication entitled “Quick Guide toGreen Design Attributes.”
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Mon
thly
for
ecas
t of
in-c
ontr
act
bu
ildin
g
cost
s (H
ayle
tt f
orm
ula
) W
ork
grou
p 18
0 Lu
mp
Sum
Dom
estic
Bui
ldin
gs (
Dec
embe
r 20
16 =
100
)
Fore
cast
dat
e:
Sep
tem
ber
2018
20
16
20
17
20
18
20
19
20
20
20
21
20
22
Mon
th
Ind
ex
% c
h
Ind
ex
% c
h
Ind
ex
% c
h
Ind
ex
% c
h
Ind
ex
% c
h
Ind
ex
% c
h
Ind
ex
% c
h
Jan
93
,2
3,7
100,
3 7,
6 10
4,4
4,1
110,
0 5,
4 11
5,9
5,4
121,
7 5,
0 12
9,7
6,5
Feb
95
,1
6,0
101,
1 6,
3 10
4,4
3,3
110,
5 5,
8 11
6,1
5,1
122,
1 5,
1 13
0,0
6,5
Mar
95
,4
5,6
101,
3 6,
2 10
4,6
3,3
110,
7 5,
9 11
6,4
5,1
122,
8 5,
4 13
0,7
6,5
Ap
r 96
,2
5,7
101,
5 5,
5 10
4,9
3,3
111,
1 5,
9 11
7,0
5,3
123,
8 5,
8 13
1,8
6,5
May
96
,4
5,8
102,
4 6,
2 10
5,0
2,5
111,
4 6,
1 11
7,3
5,3
124,
4 6,
0 13
2,3
6,4
Jun
97
,4
6,4
102,
1 4,
8 10
5,5
3,3
111,
9 6,
1 11
8,1
5,5
125,
4 6,
2 13
2,9
6,0
Jul
97,7
6,
3 10
2,2
4,6
106,
7 4,
4 11
2,5
5,4
118,
6 5,
4 12
6,2
6,4
133,
7 5,
9
Au
g
97,8
6,
9 10
2,7
5,0
107,
4 4,
5 11
2,8
5,1
118,
9 5,
4 12
6,5
6,4
133,
8 5,
7
Sep
98
,0
7,2
103,
4 5,
5 10
8,4
4,9
114,
0 5,
1 12
0,0
5,2
127,
6 6,
3 13
4,7
5,5
Oct
98
,4
6,8
104,
2 5,
9 10
9,0
4,6
114,
7 5,
2 12
0,5
5,1
128,
5 6,
6 13
5,5
5,5
Nov
99
,1
7,6
104,
8 5,
8 10
9,4
4,4
115,
2 5,
3 12
0,9
5,0
129,
1 6,
7 13
5,7
5,2
Dec
10
0,0
8,6
104,
9 4,
9 10
9,8
4,6
115,
6 5,
3 12
1,4
5,0
129,
6 6,
8 13
6,2
5,1
Avg
. 9
7,1
6
,4
10
2,6
5
,7
10
6,6
3
,9
11
2,5
5
,5
11
8,4
5
,2
12
5,6
6
,1
13
3,1
5
,9
Sou
rce:
Bur
eau
for
Econ
omic
Res
earc
h (BER
); M
ediu
m-T
erm
For
ecas
ting
Ass
ocia
tes
(MFA
)
Rode’s Report 2018:3 XIX Annexure 5
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Rode’s Report 2018:3 XX Annexure 6
BER Building Cost Index (non-residential tender prices)
2005=100
First quarter Second quarter Third quarter Fourth
quarter Average
2012 153,3 156,1 161,4 164,9 158,9 %ch 8,9 4,7 9,2 5,2 6,9 2013 171,0 165,7 173,3 171,8 170,5 %ch 11,6 6,1 7,4 4,2 7,2 2014 179,2 186,6 191,2 194,3 187,8 %ch 4,8 12,6 10,3 13,1 10,2 2015 198,2 191,2 194,8 197,2 195,3 %ch 10,6 2,5 1,9 1,5 4,0 2016 194,9 206,2 211,5 208,6 205,3 %ch -1,7 7,8 8,6 5,8 5,1 2017 213,6 215,3 220,7 217,8 216,8 %ch 9,6 4,4 4,3 4,4 5,6 2018 233,1 231,0%ch 9,1 7,3Source: The data for 2012 to 2017 is from the Report on Building Costs of the Medium-Term Forecasting Associates, P.O. Box 7119, Stellenbosch, 7599, Tel. 021 881 3887, and is published with their permission. The data for the first two quarters of 2018 is based on Rode’s own estimates
227,12,9
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Pri
me
over
dra
ft r
ate
at m
onth
-en
d (
%)
(pro
xy f
or t
ren
ds
in m
ortg
age
rate
s*)
Yea
r Ja
n
Feb
M
ar
Ap
r M
ay
Jun
Ju
l A
ug
S
ep
Oct
N
ov
Dec
Y
ear
19
93
17
,3
16,3
16
,3
16,3
16
,3
16,3
16
,3
16,3
16
,3
16,3
15
,3
15,3
1
6,2
1
99
4
15,3
15
,3
15,3
15
,3
15,3
15
,3
15,3
15
,3
16,3
16
,3
16,3
16
,3
15
,6
19
95
16
,3
17,5
17
,5
17,5
17
,5
17,5
18
,5
18,5
18
,5
18,5
18
,5
18,5
1
7,9
1
99
6
18,5
18
,5
18,5
19
,5
20,5
20
,5
19,5
19
,5
19,5
19
,3
20,3
20
,3
19
,5
19
97
20
,3
20,3
20
,3
20,3
20
,3
20,3
20
,3
20,3
20
,3
19,3
19
,3
19,3
2
0,0
1
99
8
19,3
19
,3
18,3
18
,3
18,3
22
,3
24,0
25
,5
25,5
24
,5
23,5
23
,0
21
,8
19
99
22
,0
21,0
20
,0
19,0
19
,0
18,0
17
,5
16,5
16
,5
15,5
15
,5
15,5
1
8,0
2
00
0
14,5
14
,5
14,5
14
,5
14,5
14
,5
14,5
14
,5
14,5
14
,5
14,5
14
,5
14
,5
20
01
14
,5
14,5
14
,5
14,5
14
,5
13,8
13
,5
13,5
13
,0
13,0
13
,0
13,0
1
3,8
2
00
2
14,0
14
,0
15,0
15
,0
15,0
16
,0
16,0
16
,0
17,0
17
,0
17,0
17
,0
15
,8
20
03
17
,0
17,0
17
,0
17,0
17
,0
15,5
15
,5
14,5
13
,5
12,0
12
,0
11,5
1
5,0
2
00
4
11,5
11
,5
11,5
11
,5
11,5
11
,5
11,5
11
,0
11,0
11
,0
11,0
11
,0
11
,3
20
05
11
,0
11,0
11
,0
10,5
10
,5
10,5
10
,5
10,5
10
,5
10,5
10
,5
10,5
1
0,6
2
00
6
10,5
10
,5
10,5
10
,5
10,5
11
,0
11,0
11
,5
11,5
12
,0
12,0
12
,5
11
,2
20
07
12
,5
12,5
12
,5
12,5
12
,5
13,0
13
,0
13,5
14
,0
14,0
14
,0
14,5
1
3,2
2
00
8
14,5
14
,5
14,5
15
,0
15,0
15
,5
15,5
15
,5
15,5
15
,5
15,5
15
,0
15
,1
20
09
15
,0
14,0
13
,0
13,0
11
,0
11,0
11
,0
10,5
10
,5
10,5
10
,5
10,5
1
0,8
2
01
0
10,5
10
,5
10,0
10
,0
10,0
10
,0
10,0
10
,0
9,5
9,5
9,0
9,0
9,8
2
01
1
9,0
9,0
9,0
9,0
9,0
9,0
9,0
9,0
9,0
9,0
9,0
9,0
9,0
2
01
2
9,0
9,0
9,0
9,0
9,0
9,0
8,5
8,5
8,5
8,5
8,5
8,5
8,7
2
01
3
8,5
8,5
8,5
8,5
8,5
8,5
8,5
8,5
8,5
8,5
8,5
8,5
8,5
2
01
4
9,0
9,0
9,0
9,0
9,0
9,0
9,3
9,3
9,3
9,3
9,3
9,3
9,1
2
01
5
9,3
9,3
9,3
9,3
9,3
9,3
9,5
9,5
9,5
9,5
9,8
9,8
9,4
2
01
6
10,3
10
,3
10,5
10
,5
10,5
10
,5
10,5
10
,5
10,5
10
,5
10,5
10
,5
10
,5
20
17
10
,5
10,5
10
,5
10,5
10
,5
10,5
10
,3
10,3
10
,3
10,3
10
,3
10,3
1
0,4
2
01
8
10,3
10
,3
10,0
10
,0
10,0
10
,0
10,0
10
,0
10,0
S
ourc
e: S
ARB
*Ave
rage
mor
tgag
e ra
tes
for
new
bon
ds a
re,
on a
vera
ge,
belo
w t
he p
rim
e ov
erdr
aft
rate
. In
divi
dual
mor
tgag
e ra
tes
will
dep
end
on t
he c
redi
twor
thin
ess
of t
he m
ortg
agor
.
Rode’s Report 2018:3 XXI Annexure 7
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