The SAPOA/IPD South African Biannual Property Indicator reveals a moderate improvement in the property market for the 6 month period to June 2012, but we are certainly nowhere near a full-blown recovery across the sector. Property investment overall delivered a total return of 5.9%, comprising 1.5% capital growth and 4.4% income return.Â
The good news for this month is that the Ballito office vacancy rates have steadily improved over the first three quarters of 2012.
                             Â
Offices                                Total Area          Q1 Vacancy        Q2 Vacancy        Q3 Vacancy
A Grade                              11745                    26%                        19%                      18%   Â
B Grade                              12102                    32%                      38%                      22%
C Grade                                2650                      19%                         15%                      19%
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Vacancy rates for mini factory and industrial space at the end of Q3
Size                                       Total Area          Vacant                 %
100 – 199 m2Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 21797Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2105Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
200 – 499 m2Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 21298Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 6512Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 31%Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
500 – 999 m2Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 15572Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1688Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
≥ 1000 m2                           16130                   3050                      19%
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The recent Tenant Property Network (TPN) commercial rental monitor also indicates an improvement in rental payment patterns for the second quarter of 2012. 61% of tenants paid their rent on time, 22% paid late, 10% made a partial payment and 7% did not pay their commercial property rentals. The 83% of tenants who are in good standing reflect the highest percentage recorded over the past 2 years, and the 7% who did not pay reflect the lowest statistics on record to date which is a 16% improvement since the 4th quarter of 2010.
