Despite what I read in the papers, what I am currently seeing across my desk is activity. Off the plan developments are still settling, apartments are for the most part valuing up and development sites are being acquired. People are investing in their businesses and industrial and commercial real estate transactions are still coming through the door.
This is all good.
There are certain pockets where construction prices have gone bananas, and the number of approvals for apartment dwellings is off the charts. But the reality is that the market is sorting this out. Many of the approvals will not turn into buildings, and once the serious amount of construction that is happening now starts to subside, the cost of construction will start to level off.
The issue I see is therefore not one of a dire reality, but one of perception. And the risk is that our perception has the power to become our reality.
The takeaway here is, as participants in this industry, let’s lift the tone of our conversations from half empty to half full. In the face of the negative reports, when given the opportunity to talk about the market: talk it up! And let’s see what the domino effect is.