Western Cape property market in the 'pound seat' for 2022
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Loading... - Kendel Vaness
- 03 Dec 2021
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FNB economist John Loos warns that while more rate hikes are expected in 2022, the July riots have had more of an impact on South Africa’s commercial property sector.
Add to this the ongoing power concerns with Eskom, it comes as no surprise that business confidence is languishing, meaning SA will battle to return to full recovery in 2022.
The office market continues to be the hardest hit across the three key sectors of commercial property, according to the latest industry data. While Industrial, Retail and Office are significantly oversupplied, a 72% bloat in the office sector remains a red flag concern cause by the shift to working from home following the lockdown.
Loos adds that office spaces will also need to undergo considerable redesigns for zoomification, in order to evolve with the current working climate.
Industry analysis shows that hoteling of desk space will also become an ongoing trend, as more people continue working from home, due to hybrid in-office models.
Loos also believes it will be a long claw-back for the hotel sector, which is seeing seriously low occupancy, well below pre-pandemic levels – with real improvements only likely in 2024. Read More…
