Property and Politics
Well, it has been quite a year !! what with the cabinet reshuffles, internal shenanigans with NPA; HAWKS; IPID; SAP; Radical Economic Transformation talk and two rating downgrades; nuclear; Gupta’s; Petro SA scandals; and corruption – have all helped to make this political soap opera very interesting.
Let’s get back to property; more importantly Industrial property. Even though the country is currently on a 0.05 % economic growth trajectory, Industrial property still holds its own. Scarcity of land in the South has meant Industrial Growth nodes in the North and West of Durban. Hammarsdale/Cato Ridge – is fast becoming the Midrand of Kwazulu Natal. Developments north like Cornubia and Dube Tradeport at King Shaka International Airport are very active. Recent land sales in Cornubia have reached R1650/m2 and Industrial factories/warehouses in this area are around the R10, 000/m2 mark. Leasing property is in the R60/m2 region. These figures were unheard of five years ago. Admittedly the Rand has lost its shine and rates and taxes on property has also gone through the roof, hence the high rentals.
Some industries (textile, steel, car industry + agriculture) are taking strain whilst others (logistics, bulk imports/exports) are keeping the economy going. We have seen this all before. South African’s are resilient people and if we can ignore the political rhetoric and fog that it brings maybe we can get back to work. Change is inevitable and some of the calls for radical economic transformation are fully justified. If we as a nation can do this in an orderly fashion, pull together and work together for the benefit of all !! then hopefully our rainbow will appear again.
The secret to our success is racial tolerance; empathy; constructive dialogue; and growth in our economy that benefits all. Let’s also not forget the total eradication of corruption. Our country is at a tipping point and if we don’t learn from history then I fear we will all be losers.
I yearn for the days of the Rugby and Soccer World Cup when national unity and pride prevailed. South Africa was, is and will be a great country if the current generation (20/30-year age groups) see the benefits and help change the status quo.
We at Rasmussen Properties firmly believe this and hope that stability including change will bring about a stronger economy.