Real Estate Investor Magazine South Africa Real Estate Investor Magazine - October 2017 | Page 17

EXTENDED DEADLINE According to findings presented at the 21st annual Shopping Council Convention 2017, Walmart’s online sales grew by 29%, compared to Amazon’s 22% growth in total sales. This clearly does not tell the whole story, but it does hint at the fact that brick-and-mortar may not be dead just yet. In fact, many have speculated that retail won’t necessarily move solely to a computer screen, but will change in such a way as to make the exercise more enjoyable. Experiential shopping is a bit of a buzzword at the moment, with many big names (most recently, Apple) emphasising their role in creating communities through their stores. In addition to this, the SACSC Q2 - 2017 Retail Trading Density Index found that Super Regional malls showed a -8.2% year-on-year negative growth, while Commu- nity Malls indicates a 2.8% growth in the same period. Interestingly, the study finds that although foot count in Su- per Regional centres is down, the amount spent per visit has increased. This indicates that consumers are less likely to visit large malls for everyday shopping, preferring a more convenient and local option. This trend is likely to grow, as urbanisation incre ases and shoppers end up living in close proximity to con- venience shops. The below chart indicates that, contrary to what many in South Africa may believe, we have seen exceptional growth over the past 10 years. Second only to Hong Kong, South Africa’s retail properties have yielded a compound growth rate of 14.5% over the past decade. 2 nd ANNUAL INVESTOR OF THE YEAR AWARD 2017/18 INVESTOR OF THE YEAR AWARD ENTER & WIN R50 000 Do you think you have what it takes to be the 2017/18 Real Estate Investor of the year? Do you have a property story to tell? Have you managed to creatively secure a property and maximise your investment? It could be an incredible experience, goal achievement, monetary return, reward, obstacles you overcame, something that you learnt or something that impacted you and people around you. Impress our expert panel of judges with the number, value and types of properties in your portfolio. Go to www.reimag.co.za to download your entry. Total return, retail property; compound annual growth rate; 10 years to December 2016 Source: MSCI Real Estate In conclusion Global and local changes are constantly affecting how we live our daily lives. It’s inevitable that technology’s disruptive force will change real estate - for the better. In order to remain rele- vant, investors and developers need to stay up-to-date on trends both here and abroad. As we’ve seen with the recent demise of Toys ‘R’ Us, being complacent in the face of disruption is dan- gerous. SOURCES Bloomberg, Gordon Institute of Business Science, Javelin Group, The McKinsey Global Institute, MSCI Real Estate, South African Council of Shopping Centres, UN-HABITAT, Wired Submit your application to [email protected] by 30 October and stand a chance to win* • R50, 000 in cash • An all expenses paid trip for two to Mauritius • Plus other prizes and gifts • PR exposure across REIM/SAPIN social media platforms • A feature article in Real Estate Investor Magazine *T&Cs Apply SA Real Estate Investor Magazine OCTOBER 2017 15