Sandton’s Commercial Property Market Continues to Soar
Category Commercial Property News
Sandton, otherwise known as the continent’s richest square mile, has remained South Africa’s business centre since the dawn of democracy in 1994. For over 20 years, the Johannesburg suburb has contributed significantly to the country’s GDP and is home to over 10 000 businesses, 10% of which are listed on the Johannesburg Stock Exchange. Labelled as “SA’s Engine Room", the suburb continuously shows remarkable growth, transformation and innovation.
Recent reports indicate that Sandton is set to grow further as developer confidence is at an all-time high. The suburb currently holds the majority of Gauteng’s development pipeline, with 61% of new commercial developments planned for the node. This means that more than half of Gauteng’s new commercial stock will be built in the suburb.
As new developments begin to burgeon throughout Sandton, it will add to the already high-stock existing here. In fact, the suburb holds the most commercial stock when compared to other high growth and heavy demand areas such as Rosebank, Waterfall and Illovo, with a total stock count of 1, 684, 048sqm. To put this in perspective, the second highest suburb is Rosebank, with an overall stock count of 387, 504sqm, which is 76.99% less than “the continents richest square mile".
The Sandton we know today is synonymous with ultimate commercial modernity characterised by P - and A - grade buildings, blue-chip and multinational companies, streamlined commute and high-quality infrastructure. These factors and more have led to the suburb consistently experiencing high-demand which drives up stock levels.
Sandton’s success can be attributed to its ability to adapt to transitions within society. For example, in 1994 SA experienced tremendous changes as a new democratic regime took over. The suburb responded to this transition by embracing globalisation through foreign direct investments. This led to massive growth as it allowed for national, international and multinational companies to co-exist and thrive in an open market.
As the foundation of Sandton gradually strengthened, big corporates such as Ster-Kinekor, Massmart and IBM moved into the area. Today, the suburb continues to adapt to changes and this can be seen in its response to new trends and changing mindsets.
At the beginning of the millennium, the concept of “green buildings” took prominence as society became increasingly environmentally conscious. These buildings are designed and constructed to eliminate or reduce the negative impact of development on the environment. In true leadership style, Sandton became the first suburb to receive a Green Star SA rated building in 2009 when Nedbank Phase II was constructed. The building features an energy efficient lighting system and a sustainable rainwater harvesting system. Fast-forward eight years later, the suburb is home to one of the largest numbers of green-rated buildings when compared to other commercial hubs around SA.
Sandton was also at the helm of adopting new forms transport. In June 2010, the R24bn Gautrain began operation, with its flagship station in the suburb. As it took to the rails, the Sandton community was the first to experience the rapid rail link, which today is renowned for safe, reliable, quick and comfortable public transport.
With the suburb holding majority of Gauteng’s development pipeline, the landscape is expected to change dramatically. New companies, innovative architectural designs and technological advancements will come to the fore. If history is anything to go by, Sandton will not only embrace these changes, but it will lead the way in heralding in new trends that place SA’s commercial property market in an international league.