The market is swirling around like a cyclone, not knowing which direction to take, often creating destruction as it hits projects, and generating a lot of hot air in the media.
The analogy can be applied all year round, as the rush to get things started and actioned is still creating havoc in the construction finance sector. To add to this, the weight of funds pressing the commercial investment market as all manner of Syndicators, REITS and Sovereign Funds look to place their money and you have the environment for some serious damage to spin off the “eye”. Uncertainty globally and in local politics is also pressing the environment of the cyclone, so could it create the perfect storm again?
My message is simply that I think complacency is growing and developers and investors are a little less cautious than 5yrs ago.This is the time to consider taking more advice (not less) and make the conscious assessment of risk and how to share the “risk”. You just CAN’T legislate to protect everyone, so I encourage all developers and investors to seek more advice and become more a-tuned to finding good advice in the property world and “stick to what you know” at this point in the cycle.