In­dus­trial land val­ues rocket

Record R1 750/sq m fetched in Cape Town

Finweek English Edition - - Openers - JOAN MULLER

A VA­CANT PIECE OF in­dus­trial land was last week sold for a record price of R1 750/sq m at Air­port City in Cape Town by auctioneers Auc­tion Al­liance, un­der­scor­ing the ex­tent to which zoned in­dus­trial land is be­com­ing a highly sought-af­ter com­mod- ity. This is a far cry from the sit­u­a­tion about three years ago when in­dus­trial land prices had hardly moved for a decade.

Auc­tion Al­liance CEO Rael Le­vitt says the Air­port City sale to a private owner-oc­cu­pier is be­lieved to be the high­est price (rand/sq m) ever paid for un­de­vel­oped in­dus­trial land in South Africa. He says two years ago the same 2 000sq m plot was sold for R400/sq m, so the price in­creased more than four­fold in two years. Le­vitt says strong growth in de­mand for zoned land is driv­ing in­dus­trial prop­erty val­ues sky-high, in big­ger cities and smaller towns alike.

Un­de­vel­oped land in ar­eas ear­marked for Gov­ern­ment’s in­fras­truc­tural spend­ing pro­gramme and large private sec­tor cap­i­tal projects is see­ing ex­cep­tional growth.

Le­vitt says a large, va­cant plot in Spring­field Park – a sought-af­ter in­dus­trial area near the pro­posed La Mercy air­port north of Dur­ban – bought for R5m in 2001 was re­cently resold by Auc­tion Al­liance for a hefty R52,9m.

Zoned in­dus­trial land is even fetch­ing record prices in smaller towns like Brits in North West Prov­ince where a 10 000sq m site was re­cently sold for R1,7m. Le­vitt says that three years ago they wouldn’t have been able to give the same piece of land away.

De­mand is driv­ing val­ues sky-high. Rael Le­vitt

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