The worst thing you can do in a declining market when trying to sell is to "chase the market down", that is to lower your price but not low enough so that other investments are still cheaper than yours. The De Waterkant is supposedly one of the most in demand areas in Cape Town (Which begs the question if it's so in demand why are
so many units for sale?) and yet it seems people are struggling to get rents they want. A
few days ago I mentioned a townhouse for rent for R4700 a month. Well that's now been reduced to R4500 a month, plus a new unit is available for R3850 a month:
DE WATERKANT Loader Street. renovated 2 beds, lounge/dining room. R4 500. 2 beds, lounge/dining room 1 June R3 850. Phone o/h XXX XXX. (CAPE ARGUS - 11/05/2006)
Compare those prices to this ad:
Really lovely loft apartment in the heart of the Waterkant, close to Town, Convention Centre, the Latin Quarter, Greenpoint, Waterfront, great location, own parking, swimming pool, 1 bedroom, lounge/diner/kitchen, own balcony with table mountain view. Available early June (unfurnished)
And that's going for R6000 a month. Who do you think is chasing the market?
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