Record returns for SA property market
2 April 2013
South Africa's property market showed its highest return in 2012 since the 2008-09 global financial crisis, according to the SAPOA/IPD South Africa Annual Property Index released in Johannesburg last week.
The index showed that the country's property sector delivered a 15.2% total return
last year, an increase on the 10.3% return in 2011.
"A real divergence in the market has occurred," managing director of IPD South
Africa, Stan Garrun, said in a statement.
"We have seen a good turnaround for retail and industrial properties, [but] concern
remains over the health of the office sector, as evidenced by high vacancies
particularly in the inner cities.
"Given the context of a moderate-to-soft economic outlook and relatively low levels
of consumer and business confidence, South African property has managed to once
again prove its resilience," he said.
The SAPOA/IPD index looks at a sample of 1 669 properties
worth R206.2-billion in
capital value, representing about 60% of professionally managed investment property in the country.
SAPOA is the representative body of commercial and industrial property sector in
South Africa. IPD offers real estate analysis to clients in over 30 countries
worldwide and produces more than 120 indices on the property market annually.
"South Africa joins just a handful of countries globally experiencing even a mildly
positive trend in returns," the SAPOA/IPD South Africa Annual Property Index
said.
"Once again, non-European markets are tending to outperform European countries."
SAinfo reporter
