Historically the exact property development market in South africa has been vibrant. Even so the current world economic slump started take be patient in September 2008, it drained the confidence coming from many investors and the market 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 increase in the industrial property trade?
When industrial and commercial property prices reached another low, it signaled two things. Firstly that the market was severely depressed and was likely remain in that opportunity for several years, but additionally that the bottom of the trough was in fact reached understanding that the only way out, was up. Together with market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and that isn’t laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the symptoms of recovery taking place in industrial municipal debt market sector, and with 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 one among the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is an effective time invest in. As confidence returns to the economy, possibly new letting agreements is booming and properties are much more beginning to move, leading to a slow but steady rise in prices and kent ridge hill residences rates. Always be forecast until this trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking venue.
Current thinking is this specific may well lead for industrial property boom in 2014/15. Of course with such a long gestation period a great deal of developments 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 starting 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 quick to medium term prospects are looking very positive, and now is the time to speculate and invest.