Johannesburg Property Has A New Lease On Life
Category Advice
According to a report which was released on Monday, new investors are feeling more confident about doing business in the inner city areas of Johannesburg (including areas such as Berea, Yeoville, Braamfontein, and Hillbrow). Business confidence is the highest in the development zone which links Braamfontein and Newtown, which has been affirmed by the Performance Indicator of The Johannesburg Development Agency (JDA's) 2006, inaugurated by the mayor of the city, Amos Masondo.
75% of respondents were of the opinion that turnover had risen, as opposed to 67% last year. Business profits were expected to rise by 68.6%. Evidently confidence on business since 2003 has risen. 35% believed there would be an increase. In excess of 59% believed the city’s crime rate would be on the decline. Compared to last year though, fewer people thought that inner-city crime had declined. On a positive note, the respondents who thought it was unsafe to walk dropped to 48.6% this year. Last year it was 54,4%. People who thought there weren’t enough police on the streets dropped to 41% which was 51% the year before. Forty out of hundred respondents were of the opinion that there were fewer inner city security issues compared to other areas of Johannesburg. This all has a positive effect on investment property in Johannesburg.
58% of the respondents of the cultural district thought inner city security was far better compared to some of the other areas of Johannesburg. There was a significant increase in signage, 68% of the population as opposed to 30% last year, thought that the situation was improving in comparison with other parts of Johannesburg. 68% of the population of the CBD and 70 out of 100 in the cultural district, however, were of the opinion that there wasn’t sufficient parking space. Almost 46 out of 100 people responding to the survey were not at all happy about the pavements being littered which is an improvement from last year when 52,5% of the people who responded to the survey weren’t happy at all.
With a decrease in vacancy rates of grade A and grade B properties, there has been an influx of businesses to the CBD according to the report. Occupancy rates have risen to 4.9% in Braamfontein compared to 5.2% of Rivonia, 13,5% increase in Midrand and 6.4% in Rosebank.
According to the report the survey echoed most of the findings of the previous year. However, there was improvement with regard to data relating to the economy. An issue that the JDA is currently facing is with regard to new inner city development projects.
Randburg's CBD in Johannesburg, which contributes significantly to the business district, has been earmarked for revitalization by the council. There has been a rapid fall in Randburg CBD’s grade A vacancy rates which have declined to 6.8% from 17.5%. Grade B vacancies dropped steadily as well. However with a 13.3% rise in the previous quarter it is still below the figure of 2004.
Even though Randburg’s crime rate has been steadily decreasing from 1998-99, people are of the opinion that crime rates haven’t dropped much.
Compared to 35% last year only 25% of the respondents this year believe that the CBD had improved with regard to its management which is a cause for concern. Fewer businesses in comparison to last year, felt that there was an improvement in terms of cleanliness and increased turnover was reported by fewer of the respondents. Most of the respondents were of the opinion that Randburg is dirty and unsafe.
However, 84% believed the crime rate in the area could improve, and 73% (68% from last year) believed that turnover of businesses would increase.
That the CBD revitalization project is paying off is quite apparent which is keeping in line with the trend in other cities of the world.
Author: IMAGINE Properties
