Commercial property market reflects steady growth

A prime 2000sqm piece of vacant land in sought after Sandton Drive in Johannesburg has been sold by Pam Golding Commercial (PGC) for R5.25 million. The property was purchased for the development of a commercial building, says Pam Roux, PGC sales and leasing broker who concluded the transaction.

Alex Harper, leasing and sales director for the company's Gauteng region, says the commercial sector of the property market is showing steady growth with significant movement of investors into this market. "Retail space remains in high demand, with shopping centres experiencing a particularly strong demand from investors. In the industrial market the general trend has slowed due to a shortage of stock, however, investors and users are still plentiful," he says.

Recent transactions concluded by Harper include a number of industrial buildings sold in the Selby commercial/industrial area. These are a 2000sqm, three-storey building with a warehouse component of 1500sqm - purchased by an engineering company for R2.25 million; and a further two adjacent buildings sold comprising a 1500sqm three floor building with basement parking sold for R3.85 million; and a 1200sqm building comprising two floors, sold for R1.4 million. He also sold a 800sqm commercial property in Melrose Arch for R3.5 million.

Further transactions by PGC Gauteng include a property already zoned for commercial use and comprising a 200sqm house on an erf of 3000sqm sold for R5 million and a commercial office in Petervale, well situated adjacent to the freeway, sold for R1.2 million - both concluded by Pam Roux; the sale of sectional title office space in Northcliff concluded by leasing and sales broker Pieter Luyt for: R850 000, R875 000 and R1.4 million respectively; a three-year lease of a 1546sqm storage and manufacturing industrial unit in a business park in Randjespark, Midrand, for R1.35 million, concluded by broker Lelané Leach; and a commercial lease for 800sqm of offices in the Melrose area, concluded by broker Jeff Smith for R1.5 million.

In catering for the strong demand for commercial property in South Africa, Pam Golding Commercial has expanded its operation nationally with recently opened satellite offices in conjunction with the group's residential operations in Nelspruit, Pretoria and Somerset West.

Source: Moneyweb - www.moneyweb.co.za

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