Historically the exact property development market in South africa has been vibrant. Even so the current world economic slump began to take wait and see in September 2008, kent ridge hill residences it drained the confidence coming from many investors and marketplace nose-dived considering the general economic climate. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for an increase in the economic property market?
When industrial and commercial property prices reached another low, it signaled a couple of things. Firstly that the market was severely depressed and was likely to stay that path for several years, but as well that the bottom of the trough were definitily reached understanding that the best out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the symptoms of recovery going on in the commercial sector, other than 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 one among the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now is an effective time purchaser. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are much more beginning to move, bringing about a slow but steady rise in prices and rates. Always be forecast that this trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking venue.
Current thinking is until this may well lead for industrial property boom in 2014/15. Not surprisingly with associated with long gestation period a great deal of developments arrive at final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all in the things end up being in place before actual construction will start to be fulfilled.
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 it is definitely to medium term prospects are looking very positive, and it is now time to speculate and make an investment.