The economic Property Development Market – From Bust to Boom

Historically the 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 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 an increase in the economic property markets?

When industrial and commercial property prices reached a good solid low, it signaled two things. Firstly that the market was severely depressed and was likely to stay that approach for several years, but as well that the bottom of the trough were definitily reached of which the best out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and with laws of supply and demand in operation, while excess of supply far outstripping demand, kent ridge hill residence prices remained depressed.

However, you will develop 12 months has seen the symptoms of recovery going on in sector sector, along 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 one among the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now is a good time to order. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are much more beginning to move, introducing a slow but steady rise in prices and rates. Always be forecast that trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.

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

All buying this will finally be a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and the next step is to speculate and sow.