Historically the property development market in South africa has been vibrant. Coverage the current world economic slump started to take wait and see in September 2008, it drained the confidence out of many investors and the nose-dived along with general financial crisis. But with the signs of economic recovery beginning to look at hold again, what prospects are there for a resurgence in the industrial property market?
When industrial and commercial property prices reached a good solid low, it signaled a pair of things. Firstly that the market was severely depressed and was likely remain in that means for several years, but additionally that the bottom of the trough are already reached in which the best out, kent ridge hill residences showflat was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and together with laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the warning signs of recovery taking place in industrial municipal debt market 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 on life. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now a great time invest in. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are again beginning to move, creating a slow but steady rise in prices and rates. Is usually forecast until this trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking point.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. Certainly with regarding long gestation period for first time developments to arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of these things should be in place before actual construction start to show up.
All in all this is already a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as the short to medium term prospects are looking very positive, and it is now time to speculate and invest.