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SAPOA’s Operating Costs Report for H1 2023

Property operating costs, as a percentage of gross income, continued to trend upwards during the first half of 2023 which applied pressure to net income growth of property owners – after costs stabilised somewhat during 2021 and trended in line with gross income, according to SAPOA’s Operating Costs Report for H1 2023.

As a percentage of gross income, total operating costs increased by a marginal 20 basis points to 42.5% at the end of June 2023 with this deterioration as a result of total operating costs growing by 12% while gross income grew by 10.3%.

Gross income was driven by a higher growth in tenant recoveries as opposed to growth in contractual base rental. In 2022, base rentals increased by 8.4% while fixed recoveries increased by 9.1% and variable recoveries increased by 18.6%.

For more detailed information on the SAPOA Operating Costs Report, download a free copy of the latest report here (free to SAPOA members only).

How to access SAPOA’s reports:

  • Visit
  • Login/register on SAPOA Members 
  • Click on ‘Reports’
  • Click on ‘Free Reports’
  • Click on ‘SA Property Trends Report’

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