Historically the house and property development market in South africa has been vibrant. But when the current world economic slump begin to take wait and see in September 2008, it drained the confidence associated with many investors and marketplace nose-dived considering the general finances. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for a resurgence in the commercial property market?
When industrial and commercial property prices reached a new low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to keep that way for several years, but also that the bottom of the trough ended up reached and that the best out, was up. With all the market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and at a time laws of supply and kent ridge residence demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs and symptoms of recovery occurring in industrial municipal debt market sector, other than 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 this the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being at only they are, now is an excellent time invest in. As confidence returns to the economy, the opportunity of new letting agreements is rising and properties are again beginning to move, introducing a slow but steady rise in prices and rates. It can be forecast this kind of trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead a good industrial property boom in 2014/15. Of course with associated with long gestation period kids developments arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of those things should be in place before actual construction will start to be fulfilled.
All in all this is now a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as quick to medium term prospects are looking very positive, and this is the time to speculate and develop.