Historically the exact property development market in South africa has been vibrant. Even so the current world economic slump started to take restrain in September 2008, it drained the confidence out of many investors and the market nose-dived along with general economic climate. But with the signs of economic recovery beginning to take hold again, what prospects are there for a resurgence in the commercial property markets?
When industrial and commercial property prices reached another low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to stay that path for several years, but also that the bottom of the trough were definitily reached and that the greatest 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, with the excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the indications of recovery occurring in sector 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 probability. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now is a good time to order. As confidence returns to the economy, the potential for new letting agreements is booming and properties are once again beginning to move, leading to a slow but steady rise in prices and kent ridge hill residences showflat rates. Always be forecast this specific trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking point.
Current thinking is this specific may well lead with regard to an industrial property boom in 2014/15. Keep in mind with regarding long gestation period for first time developments to come to final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all in the things should be in place before actual construction start to be fulfilled.
All in all this is now a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as of course to medium term prospects are looking very positive, and the next step is to speculate and develop.