Historically the property development market in South africa has been vibrant. Shield for your windshield the current world economic slump started to take wait and see in September 2008, it drained the confidence out of many investors and the market nose-dived coupled with general economic situation. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for upset in the industrial property market?
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 stay that means for several years, but additionally that the bottom of the trough ended up reached understanding that the best out, was up. With all the 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, the actual excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs of recovery going on in industrial municipal debt market sector, and 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 one among the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is an effective time purchaser. As confidence returns to the economy, the potential for new letting agreements is booming and properties are much more beginning to move, creating a slow but steady rise in prices and rates. It is forecast that this trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is that this may well lead a good industrial property boom in 2014/15. Of course with this 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 end up being in place before actual construction can start to show up.
All for kent ridge hill residences all this has grown to be a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and the time has come to speculate and develop.