Industrial land values rocket
Record R1 750/sq m fetched in Cape Town
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