The JSE All Property Index closed at 8 808 last night.
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The Western Cape and KZN reported the highest annualised trading densities of R45 460 per square metre and R42 676 per square metre respectively during Q1 2024 with Gauteng at R40 348 per square metre, according to Clur Internationalβs newly launched provincial indices which forms part of the quarterly Clur Shopping Centre Index. Growth rates for the first quarter tell a different story with the Western Cape showing the highest year-on-year growth rate of 8.2% and Gauteng at 5.9%, both outperforming CPI by 2.9% and 0.6% respectively. However, KZN reported negative year-on-year growth of -2.4%, underperforming CPI by -7.7%.
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Cape Town has emerged as SAβs most expensive city to develop in with construction costs having reached $1 088 per m2, up from $1 061 in 2023, according to the 2024 International Construction Market Survey (ICMS) by Turner & Townsend, with the average cost to build a CBD high-rise prestige office in the Mother City now standing at $1 284 per m2. In Africa, Harare in Zimbabwe, is the most expensive city to build in with average construction costs having risen to $1 993 per m2.
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The V&A Waterfront has signed a ten-year power purchase agreement (PPA) with Etana Energy for 43 GWh of renewable energy a year which will effectively see electricity, sourced from wind and solar farms, meeting up to 70% of the mixed-use precinctβs energy needs from early 2026. With 24m visitors a year, the V&A Waterfront has already reduced its carbon emissions by 47%, its water usage by 61%, and all organic and recyclable waste β 62% of the total β is diverted from landfills. Single-use plastic will be phased out by 2025.
Stor-Age REIT is considering lowering its payout ratio to 90% - 95% of distributable income due to the current high cost of capital Β β having maintained a 100% payout ratio since listing on the JSE in 2015. In a FY24 SENS announcement, the Group said that although it has delivered strong results in SA, with the UK presenting a βmore challenging environmentβ compared to the last few years, its business is well positioned in both markets, and it will continue to consider acquisition and development opportunities in SA, but it remains βvery circumspect with capital allocation.β The REIT declared a dividend of 56.81 cps for FY24 with its LTV currently sitting at 31.4%.Β
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SAβs national residential rental vacancies are at their lowest level since 2016, according to TPN Credit Bureauβs latest Vacancy Survey Report for Q1 2024. Gauteng, with the highest percentage of households renting, reported reduced vacancies from 8.14% to 4.3%; the Eastern Cape, with the lowest percentage of households that live in rental properties, produced a vacancy rate of 3.54%; KZN, with the highest percentage of households living in owned properties, reported a decrease in vacancies to 6.41%; and the Western Cape, which continues to boast the lowest number of vacant rental units in SA, boasted a 1.51% vacancy rate.Β
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Liberty Two Degreesβ Eastgate Shopping Centre has claimed SAβs largest registered rooftop solar installation. In total, and constructed over two phases, the mall has almost 13 675 solar panels equating to 35% of the energy required to run its daily load with the installation covering most of the available mall roof space, an area of approx. 28 100m2. The project is scheduled for completion during Q3 2024.
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The Western Cape accounted for 29% of ooba Home Loan semigration applications during Q1 2024, up from 14% at the start of 2020 while semigration to Gauteng declined from a high of 34% in 2019 to 25% during Q1 2024. Investors are also capitalising on the huge demand for rentals in the Western Cape by purchasing investment properties at the highest rate seen in the past five years.Β
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The Engineering Council of South Africa (ECSA) has placed the engineer, who oversaw the construction of the George building that collapsed, on precautionary suspension. In a media statement, the ECSA said this decision is a preventative measure, not disciplinary action, and its Council will maintain the suspension until a decision is made regarding the potential charges against him.Β