Magner Properties
  • Home
    • About Us
  • Property Articles
  • Landlord Legal
  • Developments
    • Vida 'Unico
    • 1 on Albert
  • Contact
  • News & Listings
  • Calculators
  • De Wijnlanden Properties

Cape Town 'breaking free' from Eskom will greatly impact property value

2/24/2020

0 Comments

 
Picture

A bold move by Cape Town to ‘break free’ from Eskom will have a great impact on its property values
​
Following President Cyril Ramaphosa’s announcement to ‘fix the fundamentals’ at last week’s SONA address, the breakaway from Eskom through alternate energy sources and the speeding up of licences to generate more than 1MW of power, shows clear signs of hope for the Commercial Real Estate industry.
The property sector has been at the mercy of Eskom and new measures being put in place will see growth in real estate values in the long-run. Welcoming both local and global independent sustainable power producers into the market will boost market confidence and see significant investments into South Africa. The question is, how fast can this happen, and can we afford to wait?

Uninterrupted power supply to Cape Town through the creation of its own power generation will see small businesses relocating from Johannesburg to Cape Town, while larger Johannesburg-based businesses would have already put plans in place to generate their own power”. Based on this, the prediction is a land price increase towards areas like Atlantis as a commercial hub.

The Real Price of Power Cuts

The replacement of equipment and increased maintenance due to power cuts is costing the industry. Increasingly, landlords are moving towards being sustainable and self-sufficient. If you are not making your portfolio sustainable then you are behind the curve. Today, tenants want to know if a property is equipped with a generator, solar power etc. and this has become a key selling point.
​
In addition, the news of Moody’s growth forecast down from 1 percent to 0.7 percent has once again placed a negative sentiment on South Africa. There is a lot pressure on the market and there isn’t a lot of growth to drive the market. We are seeing upward pressure on interest rates and a reduction of 25 basis points has very little impact on the industry.

Landlords want to see a clear decrease in interest rates. 100 points, for instance, will have a big impact on the industry. Landlords still have debt to service – regardless of whether they have a tenant or not.

Signs of Hope post-SONA

There are two additional key take-outs from President Cyril Ramaphosa’s SONA address to consider:

Land Expropriation: To a large degree, land expropriation has no impact on large commercial property owners, nor does it concern them. Where there is plans to develop land, we do not foresee it being taken away and don’t believe that there is any reason to panic”.

Infrastructure Investments: Talk of a smart city, a new university and a major dam to name a few will provide a much-needed boost for both the construction sectors.

That said this has been in the pipeline for years at Lanseria and is 'nothing new' he said.

Article referenced from:
https://www.iol.co.za/business-report/economy/cape-town-breaking-free-from-eskom-will-greatly-impact-property-value-42999429
​
0 Comments



Leave a Reply.

    SO WHY US?....

    ​1. Our core values of communication and transparency means that clients are never unpleasantly  surprised during the process and what you see is what you get - great results, fast and friendly

    2. Our priority is to get you the highest possible price in the shortest amount of time with minimal amount of hassle... and we're good at it!

    3. Our focus on relationship-centric service and mutual respect means that we listen, we act on your behalf and we work for the sort of deal for you that we would appreciate ourselves

    4. Punctual and reliable are our middle names and therefore we don't waste your valuable time...

    5. As your own personal realtor - we'll coordinate with our service professionals and other agents in the process, so you don't have to - not only will it eliminate stress but you receive a seamless service.

    So why not put the job of buying or selling your home into the hands of those who know the service you deserve and are the people you can trust? Call Susan on 083 320 1145 now and when you do, be sure to ask about our professional movers' special offer...

    Archives

    February 2021
    December 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    September 2018
    May 2018
    February 2018
    September 2017
    May 2017
    February 2017
    October 2016
    April 2016
    February 2016

    Categories

    All

    RSS Feed

Powered by Create your own unique website with customizable templates.
  • Home
    • About Us
  • Property Articles
  • Landlord Legal
  • Developments
    • Vida 'Unico
    • 1 on Albert
  • Contact
  • News & Listings
  • Calculators
  • De Wijnlanden Properties