Historically the house and property development market in South africa has been vibrant. Even so, if the current world economic slump started to take hold back in September 2008, it drained the confidence coming from many investors and marketplace nose-dived along with the general economy. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for upset in the industrial property trade?
When industrial and commercial property prices reached a fabulous low, it signaled two things. Firstly that the market was severely depressed and was likely to keep that opportunity for several years, but that the bottom of the trough are already reached understanding that the greatest out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that are already pouring in had stopped, and that isn’t laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs and symptoms of recovery as far back as in industry sector, together 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 certainly one of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now is a good time to buy. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are much more beginning to move, kent ridge hill residences price leading to a slow but steady rise in prices and rates. It is forecast that trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is this specific may well lead to an industrial property boom in 2014/15. Of course with regarding long gestation period kids developments to come to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all things should be in place before actual construction starting to take place.
All for all this has grown a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as the short to medium term prospects are looking very positive, and it is now time to speculate and make an investment.