Brokers say all three commercial property markets are oversupplied
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CAPE TOWN - PROPERTY brokers view all three major commercial property buying and selling markets as “substantially oversupplied”, with the office market being the most oversupplied, while in terms of major metro, Johannesburg was the most oversupplied.
This was according to the fourth quarter 2020 results of the FNB Commercial Property Broker Survey, which surveyed a sample of commercial property brokers in Joburg and Ekurhuleni, Tshwane, Ethekwini, Cape Town and Nelson Mandela Bay.
FNB commercial finance property strategist John Loos said yesterday that a key theme to emerge was that the industrial property market was still perceived to be the strongest, but all three property classes had “a very weak” perceived demand-supply balance in the fourth quarter survey.
In industrial property, the three coastal metros, Cape Town, Nelson Mandela Bay and Ethekwini was where the relative market strength was believed to be the most, with Gauteng metro regions being the area of relative weakness.
Greater Johannesburg came out with the weakest demand-supply balance readings in all three sectors.
Brokers saw industrial property as strongest in terms of time on the market, with an average for occupied industrial properties of 23.26 weeks quicker than the 25.07 weeks for retail and 25.86 weeks for office space.