Historically the house and property development market in South africa has been vibrant. Even so, if the current world economic slump began to take suppress in September 2008, it drained the confidence coming from many investors and the actual marketplace nose-dived along with general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an upsurge in the economic property market?
When industrial and commercial property prices reached another low, it signaled 2 things. Firstly that the market was severely depressed and was likely remain in that opportunity for several years, but as well that the bottom of the trough were definitily reached understanding that the very best out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and with the laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the symptoms of recovery as far back as in industrial municipal debt market sector, along with property prices still artificially low, it has begun to stimulate demand, kent ridge residence 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 the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now a great time to buy. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are had been beginning to move, bringing about a slow but steady rise in prices and rates. Is usually forecast this kind of 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 a good industrial property boom in 2014/15. However with regarding long gestation period moms and dads developments to come to final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all things should be in place before actual construction start to be fulfilled.
All in all this is already 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 this is the time to speculate and sow.