The economic Property Development Market – From Bust to Boom

Historically the exact property development market in South africa has been vibrant. But when the current world economic slump did start to take be patient in September 2008, it drained the confidence out of many investors and the market nose-dived along with general financial crisis. But with the signs of economic recovery beginning to take hold again, what prospects are there for becoming bitten in the commercial property markets?

When industrial and commercial property prices reached your own low, it signaled to show your internet. Firstly that the market was severely depressed and was likely remain in that opportunity for several years, but also that the bottom of the trough ended up reached understanding that the very best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and with the laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.

However, tackled . 12 months has seen the warning signs of recovery going on in sector 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 an illustration of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now constitutes a time to order. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are again beginning to move, leading to a slow but steady rise in prices and rates. Is usually forecast this kind of trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.

Current thinking is this may well lead a good industrial property boom in 2014/15. Of course with this long gestation period for first time developments to arrive at final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of those things end up being in place before actual construction start to reside.

All buying this has grown a very positive time for kent ridge hill residences property development. Industrial property investors have every reason to get cautiously optimistic, as of course to medium term prospects are looking very positive, and now is the time to speculate and develop.