Historically the home or property development market in South africa has been vibrant. Shield for your windshield the current world economic slump began to take wait and see in September 2008, it drained the confidence associated with many investors and the nose-dived coupled with general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for a resurgence in the economic property trade?
When industrial and commercial property prices reached your own low, it signaled 2 things. Firstly that the market was severely depressed and was likely keep that opportunity for several years, but that the bottom of the trough were definitily reached in which the very best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and with laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs of recovery taking place in sector 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 costs being under they are, now is an effective time invest in. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are had been beginning to move, bringing about a slow but steady rise in prices and rates. Always be forecast that this trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.
Current thinking is until this may well lead to an industrial property boom in 2014/15. Of course with regarding long gestation period for first time developments to arrive at final fruition, kent ridge hill residences the process needs always be kicked off now. Feasibility studies, surveys, finance – all of these things must be in place before actual construction can start to reside.
All for all this will finally be a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as quick to medium term prospects are looking very positive, and now is the time to speculate and invest.