Historically the property development market in South africa has been vibrant. Even so, if the current world economic slump did start to take wait and see in September 2008, kent ridge hill residences it drained the confidence involving many investors and the nose-dived considering the general economic climate. But with the signs of economic recovery beginning to consider hold again, what prospects are there for an increase in the industrial property trade?
When industrial and commercial property prices reached another low, it signaled a pair of things. Firstly that the market was severely depressed and was likely to keep that way for several years, but as well that the bottom of the trough ended up reached understanding that the greatest out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that are already pouring in had stopped, and with laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs and symptoms of recovery developing in the commercial sector, together with property prices still artificially low, it 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 certainly one of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now a great time purchase. As confidence returns to the economy, the potential for new letting agreements is booming and properties are once again beginning to move, resulting in a slow but steady rise in prices and rates. It is forecast this specific trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this specific may well lead a good industrial property boom in 2014/15. However with such a long gestation period moms and dads developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of the listed things should be in place before actual construction starting to take place.
All in many this will finally be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and this is the time to speculate and develop.