The South African property sector is worth R4.9-trillion, according to research by the Property Sector Charter Company, marking the first study of its kind on the size and shape of the country's property industry.
Inset: Luxury apartments look onto the marina at Cape Town's V&A Waterfront, a mixed-use shopping, hotel, business and residential development set in a working harbour (Photo: Rodger Bosch, MediaClubSouthAfrica.com)
It is the first study of its kind about the size and shape of the country's property industry.
"The research creates a hub of knowledge about the property sector, consolidating information and developing a common and consistent understanding," chief executive officer of the Property Sector Charter Company, Portia Tau-Sekati, said in a statement.
"By determining the size of the South African property sector, we are moving towards a proper baseline measure to assess market size and its components, the scale of different services and activities within the sector."
The sector contributes significantly to the country's economy and in 2009 comprised 8.3% of gross domestic product (GDP), according to a South African Property Owners Association research report entitled "the economic impact of the property sector in South Africa".
According to the Charter Council's study, only 1% of the country's land is urban and residential, about 73% is natural pasture, approximately 12% is agricultural and the remaining land is comprised of conservations and reserves.
It also indicates that about two-thirds of the property owned in South Africa is residential and worth R3-trillion, while commercial property is worth R780-billion.
Undeveloped land that is zoned for development is valued at R520-billion and publicly owned property, including national, provincial and local government and state-owned enterprises, is worth R570-billion.
"Retail property has the highest value of the commercial property sectors in South Africa at R340-billion, followed by office properties at R228-billion and industrial properties at R187-billion," the Charter Council reported.
"Representing a small comparative value of R25-billion is hospitality, leisure and 'other' property."
The study will be an annual one and the Charter Council aims for it to become the benchmark against which progress in the industry is measured. "The study is a useful tool for understanding the South African property market and its dynamics," Tau- Sekati said.
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