Demonstrating ongoing resilience and adaptability, positive shifts in the South African office property market as outlined in the recent SAPOA Office Vacancy Survey, underline the potential for optimism in 2024, including a reduction in vacancies across the country, says Andrew Dewey, MD of Swindon Property.According to the SAPOA’s survey, the overall vacancy rate in Q3 2023 improved by 30 basis points to 15.
“Importantly, it should be borne in mind the regional nuances in office vacancy rates, notably in the City of Johannesburg, where the rate stands at 18.0%, the highest among the major metros. Conversely, the City of Cape Town's reduction to a 7.5% vacancy rate demonstrates the popular demand in the province fuelled by a variety of factors, including solid infrastructure, proactive, solutions-driven governance, and an investment-friendly and aesthetically appealing environment.
The question of whether office demand has changed forever continues to be debated by developers, landlords, lenders and advisors. According to the Savills report, undoubtedly businesses are seeking to work more efficiently and reduce their footprint where possible, however, this too is highly nuanced and subject to overall workplace strategy, business sector and future growth.