Following the growth of northwestern Johannesburg, light industries have emerged to support the residential boom.
This has helped spawn renewed demand in such places as Lazer Park, Northriding and KyaSands as well as providing a massive labour pool for emerging business, major proposed developments in close proximity such as Cosmo City could well increase this demand - which typically is in the form of household products and accessories, furniture products and related goods and services.
To the northeast, the industrial property market of Midrand appears to be improving after a lull over the past four years as a result of the development of new modern nodes and a general decline in some of the key clusters - primarily IT related. New developments brought to market are generally fully let. One of the advantages for new developments is that land prices of between R150-R280/m2 are lower than those of other areas where comparable highway exposure is sought. By comparison, in popular nodes like Longmeadow and Linbro Park, land now trades at R350/m2 or more, with prime highway-fronting sites trading from R380/m2 to R400/m2.
Midrand's relative affordability should rapidly change as the strip is seeing new developments and limited land supply will create a premium in due course. As a node that has a wide variety of supply as well as propensity for combining light industrial and office, the market should continue improving.
Industrial supply indicators at a national level confirm that industrial property investment is growing strongly and supports the fixed investment sentiment emanating from the manufacturing survey in general. City Deep and Kaserne to the southeast of the CBD play a critical role in the economy of Gauteng.
Forty percent of all cargo exported from the Durban port originates in the area. The infrastructure development process around the terminal is well under way with three roads identified as priority areas.
Brownfield industrial complexes such as City Deep/Kaserne face competition from their more modern counterparts located along the city's freeway system to the north and east of Greater Johannesburg.