Historically the property development market in South africa has been vibrant. Even so the current world economic slump begin to take wait and see in September 2008, it drained the confidence out of many investors and marketplace nose-dived along with general economic climate. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for becoming bitten in the economic property markets?
When industrial and commercial property prices reached a fabulous low, it signaled a couple of things. Firstly that the market was severely depressed and was likely remain in that approach for several years, but as well that the bottom of the trough ended up reached of which the greatest out, was up. Together with market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and with the laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs and symptoms of recovery developing in the commercial sector, together with property prices still artificially low, this has begun to stimulate demand, as property development speculators are one again sensing the opportunity of making good short to medium term returns on new investments.
Office properties in particular are an illustration of this the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and prices being at only they are, now a great time to order. As confidence returns to the economy, possibly new letting agreements is booming and properties are once again beginning to move, resulting in a slow but steady rise in prices and rates. Is usually forecast until this trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is this specific may well lead with regard to an industrial property boom in 2014/15. Not surprisingly with associated with long gestation period moms and dads developments to go to final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all in the things must be in place before actual construction can begin to be fulfilled.
All in all this has grown a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as of course to medium term prospects are looking very positive, and kent ridge hill residences the time has come to speculate and sow.