rode’s report 2018:3 · 2020. 4. 1. · e-mail: [email protected] website: cover illustration...

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

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

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

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

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

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

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

Panellist codesxiiiRode’s Report 2018:3


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

Panellist codesxivRode’s Report 2018:3


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

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.

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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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.

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Shopping Centres: Rode is considered one of South Africa's premier shopping-centre valuers.

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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.

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%.

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

%


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


%

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


%

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


%

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


%

Smoothed


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


%

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


%

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


%


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.


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.

--

--

- --

--


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 - - - -


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.


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


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.


Table 2.6 (continued) Survey of capitalization rates (%): shopping centres


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 - - -


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


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


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.


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 - -

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.


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.

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


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


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


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

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



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


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


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


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


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


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



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


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


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


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



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%


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.


Table 5.2 (continued) Market rental rates for office buildings


Grade A+ mean

Grade A mean

Grade B mean


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.




Grade A+

meanGrade A mean

Grade B mean


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.




Grade A+

meanGrade A mean

Grade B mean


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.


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.


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 -


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.


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


Table 5.4 (continued) Typical rent-free period in months


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 -


Table 5.4 (continued) Typical rent-free period in months


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 -


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


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


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


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


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


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


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


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


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

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


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


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


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


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



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



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


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




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



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




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




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




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


Table 6.2 Sapoa office stock (m²)


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


Table 6.2 (continued) Sapoa office stock (m²)


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




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




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




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




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




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




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


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

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)


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

)


32

30

28

26

24

22

20

1894 96 98 00 02 04 06 08 10 12 14 16 18


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


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%

Tab

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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


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


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


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 -

- -


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


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


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


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


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 -

- -


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


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


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


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


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


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


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

-

- -

- -


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


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


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


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


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


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


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



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


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.


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.


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.

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


Nominal industrial stand values (1.000m² stands)

Smoothed

R/m

²(l

og s

cale

)


1,000900800700600

500

400

300

200

10092 94 96 98 00 02 04 06 08 10 12 14 16 18


Real industrial stand values (1.000m² stands)2005 rands

Smoothed

R/m

²(l

og s

cale

)


Deflated by BER BCI (2005=100)

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).

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

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


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


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


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 -

- -

- -


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


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


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-

- -


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


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


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


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


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


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


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


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


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


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-

--

-


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


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 -

- -

-


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


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 2018:3 118 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%

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


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


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


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


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


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

- -

- -

--

- -


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-

- -

- -

- -

-


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


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

- -

- -

--

- -


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


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


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


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


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


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

- -

- -

- -

- -


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-

- -

- -

- -

-


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-

- -

- -

- -

-


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

- -

- -

- -

- -


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

-

- -

- -

- -

-


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

- -

- -

--

- -


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

- -

- -

--

- -


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


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


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

- -

- -

--

- -


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-

- -

- -

- -

-


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

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P

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Sum

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End

- -

- -

--

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mer

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--

- -

Cen

tral

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- -

- -

--

- -

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ton

Park

-

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/Hav

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- -

- -

- -

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- -

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- -

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--

- -

Will

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- -

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--

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Nav

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- -

- -

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con

tin

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) Fl

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- -

- -

- -

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--

- -

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agon

Par

k -

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ley

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Par

k -

- -

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- -

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-

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N

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bley

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on-

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- -

- -

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mar

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City

- -

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N

Pres

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- -

- -

--

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am/S

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svill

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d Cre

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-

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80

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50

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- H

N

Hay

field

s/Li

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/Bel

levu

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The

Mea

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s -

- -

- -

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-

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der

bij

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derb

ijlpa

rk C

entr

al

- -

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--

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Van

derb

ijlpa

rk C

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- -

- -

- -

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ijlpa

rk S

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- -

- -

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ijlpa

rk S

W

- -

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Van

derb

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rk C

W

- -

- -

--

- -


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


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)


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)

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


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


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.

Annexures

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

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.

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

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

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.

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

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

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.

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

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.

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:

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.

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).

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

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

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

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

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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tem

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20

16

20

17

20

18

20

19

20

20

20

21

20

22

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3 7,

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4,4

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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

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Mar

95

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5,6

101,

3 6,

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7 5,

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96

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111,

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97

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6 6,

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98

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99

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10

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Rode’s Report 2018:3 XIX Annexure 5

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

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.

Rode’s Report 2018:3 XXI Annexure 7

rode’s report 2018:3 · 2020. 4. 1. · e-mail: [email protected] website: cover illustration...

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