Historically the property development market in South africa has been vibrant. But when the current world economic slump did start to take be patient in September 2008, it drained the confidence coming from many investors and marketplace nose-dived along with the general finances. But with the signs of economic recovery beginning to look at hold again, what prospects are there for upset in the economic property trade?
When industrial and commercial property prices reached another low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to stay that path for several years, but as well that the bottom of the trough had been reached in which the greatest out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and kent ridge hill residences price at a time 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 of recovery as far back as in industry sector, and 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 probability. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now is an excellent time to order. As confidence returns to the economy, possibly new letting agreements is booming and properties are once again beginning to move, creating a slow but steady rise in prices and rates. It can be forecast this kind of trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. However with any long gestation period for new developments to go to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of the listed things should be in place before actual construction starting to are held.
All within all this is now a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as quick to medium term prospects are looking very positive, and the time has come to speculate and sow.