Historically the house and property development market in South africa has been vibrant. Coverage the current world economic slump started 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 consider hold again, kent ridge hill residence what prospects are there for an upsurge in the economic property markets?
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 to keep that way for several years, but that the bottom of the trough had been reached understanding that the greatest out, was up. With all the market having stabilized at its new low, it meant how the glut of distressed properties that are already pouring in had stopped, and with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the signs and symptoms of recovery developing in industrial municipal debt market sector, together with 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 certainly one of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now is a good time invest in. As confidence returns to the economy, the potential for new letting agreements is booming and properties are once again beginning to move, bringing about 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 situation.
Current thinking is until this may well lead for industrial property boom in 2014/15. Not surprisingly with this long gestation period moms and dads developments to find final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all things should be in place before actual construction can start to take place.
All in all this is already a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as the short to medium term prospects are looking very positive, and the time has come to speculate and make an investment.