Historically the property development market in South africa has been vibrant. Coverage the current world economic slump did start to take hold back in September 2008, it drained the confidence associated with many investors and current market nose-dived considering the general economy. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for becoming bitten in the industrial property market?
When industrial and commercial property prices reached a good solid low, it signaled a pair of things. Firstly that the market was severely depressed and was likely keep that means for several years, but also that the bottom of the trough had been reached this the very best out, was up. With all the market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and at a time laws of supply and kent ridge hill residences demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the warning signs of recovery going on in the commercial sector, and 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 probability. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now is a good time invest in. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are had been beginning to move, resulting in a slow but steady rise in prices and rates. It can be forecast that trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this specific may well lead a good industrial property boom in 2014/15. Of course with this long gestation period for new developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction can start to are held.
All in all this will finally be a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as the short to medium term prospects are looking very positive, and the next step is to speculate and invest.