Historically the property development market in South africa has been vibrant. Even so, if the current world economic slump started take wait and see in September 2008, it drained the confidence coming from many investors and marketplace nose-dived along with the general economic situation. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for a resurgence in the industrial property store?
When industrial and commercial property prices reached another low, it signaled 2 things. Firstly that the market was severely depressed and was likely in which to stay that means for several years, but also that the bottom of the trough had been reached of which 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 together with laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the symptoms of recovery occurring in industrial municipal debt market sector, along 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 the small sum of they are, now is an effective time to order. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are much more beginning to move, resulting in a slow but steady rise in prices and rates. It can be forecast this specific trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.
Current thinking is this may well lead for industrial property boom in 2014/15. However with such a long gestation period moms and dads developments arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all in the things should be in place before actual construction can start to take place.
All in all this has grown a very positive time for kent ridge hill residence property development. Industrial property investors have every reason to cautiously optimistic, as quick to medium term prospects are looking very positive, and it is now time to speculate and develop.