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Feb 08, 2008:
A mixed use development in Cape Town's burgeoning northern suburbs is seeing a growing trend towards owner occupiers seeking to purchase their own office accommodation.
"While these were previously predominantly investor purchasers, we now see a market swing towards owner occupiers," says Gil Ben-David, leasing and sales consultant for Pam Golding Commercial (PGC).
"Despite the current higher interest rates there's always a sound demand for good quality office accommodation in Century City. Such properties are always increasing in value and new developments are proceeding steadily.
"The fact is, there's always a demand from those wishing to own their own office space, and we are seeing a number of buyers seeking property in Century City as opposed to heavily traffic-congested areas. Currently, the price per square metre for accommodation in new buildings is R16,500 inclusive of parking, with VAT additional. In the older existing buildings the rate is R14,500 inclusive of parking, plus VAT.
"We are seeing an increase in demand among international purchasers, as well as from corporates with head offices in Gauteng - wishing to open a Cape Town office," says Ben-David.
He adds that from a rental perspective, rates of office accommodation in new buildings start at R100 per square metre, with parking additional. Upmarket AAA grade accommodation is generally priced between R115 and R125 per square metre.
