Overactive developers have caused an oversupply of shopping centre space in certain areas of the country.
Analysts say Pretoria and its eastern side have a surfeit of shopping space.
Anton de Goede, property portfolio manager at Coronation, says SA’s retail property sector now sits at the tail-end of an overdevelopment period that is characterised by relatively high vacancy rates.
Dr Dirk Prinsloo, CE of Urban Studies, a firm that investigates the feasibility of new shopping centres, says more developers planned centres during the good times in 2006 and 2007 and this pace is only now coming to market. He says this has resulted in the market being oversupplied in certain areas.
SA has shopping centre space of about 17,3m sqm and will be getting a further 100,000sqm during 2010.