Historically the real estate development market in South africa has been vibrant. Even so, if the current world economic slump begin to take wait and see in September 2008, it drained the confidence associated with your many investors and the actual marketplace nose-dived considering the general economic climate. But with the signs of economic recovery beginning to consider hold again, what prospects are there for a resurgence in the economic property store?
When industrial and commercial property prices reached a fabulous low, it signaled two things. Firstly that the market was severely depressed and was likely keep that path for several years, but as well that the bottom of the trough ended up reached understanding that the sole method out, was up. Is not 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, more than excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the signs and symptoms of recovery as far back as in sector sector, by means of 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 a good example of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now is an effective time to order. As confidence returns to the economy, the potential for new letting agreements is rising and properties are again beginning to move, bringing about a slow but steady rise in prices and rates. It can be forecast until this trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is this specific may well lead with regard to an industrial property boom in 2014/15. Keep in mind with this long gestation period for first time developments to come to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all things must be in place before actual construction starting to be fulfilled.
All in all this is already a very positive time for kent ridge hill residences showflat property development. Industrial property investors have every reason become cautiously optimistic, as quick to medium term prospects are looking very positive, and it is now time to speculate and invest.