Historically the property development market in South africa has been vibrant. Even so the current world economic slump started take suppress in September 2008, it drained the confidence associated with your many investors and marketplace nose-dived considering the general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an upsurge in the industrial property markets?
When industrial and commercial property prices reached a new low, it signaled two things. 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 was in fact reached understanding that the very best out, was up. With the market having stabilized at its new low, it meant that the glut of distressed properties that had been pouring in had stopped, and with the laws of supply and demand in operation, that's not a problem excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the warning signs of recovery taking place in sector sector, by means of 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 certainly one of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now is an excellent time purchaser. As confidence returns to the economy, possibly new letting agreements is rising and properties are had been beginning to move, introducing a slow but steady rise in prices and rates. Always be forecast this kind of trend continue slowly but surely, kent ridge hill residences price depleting the supply surplus which will eventually trigger a new bout of property development taking venue.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. However with any long gestation period moms and dads developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance - all of these things must be in place before actual construction start to reside.
All in all this has grown to be a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as simple to medium term prospects are looking very positive, and the time has come to speculate and sow.