Historically the exact property development market in South africa has been vibrant. But when the current world economic slump started take restrain in September 2008, it drained the confidence associated with many investors and marketplace nose-dived coupled with general economic climate. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an upsurge in the commercial property area?
When industrial and commercial property prices reached a good solid low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to keep that path for several years, but that the bottom of the trough was in fact reached and that the best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that were being 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, explored 12 months has seen the signs and kent ridge residence symptoms of recovery taking place in industrial municipal debt market sector, by means of 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 an illustration of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is a good time to order. As confidence returns to the economy, possibly new letting agreements is rising and properties are once again beginning to move, creating a slow but steady rise in prices and rates. Usually forecast that this trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead for industrial property boom in 2014/15. Of course with associated with long gestation period a great deal of developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all things should be in place before actual construction starting to are held.
All in many 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.