As retail property fundamentals continue to strengthen, Sesfikile Capital anticipates further declines in vacancies due to limited supply. Like-for-like rents are projected to grow by 3% to 4% over the next two years.
REITs report reduced vacancies, increased trading densities, and higher tenant turnover as more shoppers visit their malls. Data from MSCI indicates an 8.3% year-on-year increase in foot traffic at major malls, with footfall consistently rising each month since December 2021.
For the period ending June 30, Hyprop Investments Limited noted improvements in average reversions, decreasing vacancies, and growth in turnover and trading density, alongside a 6.4% increase in average foot count.
In its pre-close update, Vukile Property Fund highlighted growth in turnover and trading density across key retail categories, including pharmacies, health and beauty, bottle stores, and sports utilities/gyms. Notably, township malls saw a 5.3% increase in trade, while rural malls recorded a 3.5% rise.
