The economic Property Development Market – From Bust to Boom

Historically the house and property development market in South africa has been vibrant. Shield for your windshield the current world economic slump began to take suppress in September 2008, it drained the confidence associated with many investors and the market nose-dived considering the general finances. But with the signs of economic recovery beginning to consider hold again, what prospects are there for upset in the industrial property market?

When industrial and commercial property prices reached a good solid low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to keep that path for several years, but also that the bottom of the trough ended up reached this the best out, was up. With all the market having stabilized at its new low, it meant that the glut of distressed properties that were actually pouring in had stopped, and with the laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.

However, given out 12 months has seen the warning signs of recovery going on in the commercial sector, by means of 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 a good example of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now constitutes a time invest in. As confidence returns to the economy, the potential for new letting agreements is rising and properties are had been beginning to move, creating a slow but steady rise in prices and rates. Usually forecast that trend continues slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.

Current thinking is this specific may well lead to an industrial property boom in 2014/15. Not surprisingly with regarding long gestation period for new developments arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of these things should be in place before actual construction will start to be fulfilled.

All buying this is now a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as the short to medium term prospects are looking very positive, and kent ridge hill residences the next step is to speculate and sow.

Scroll to top