The Square: If It Won't Sell For R570 000 I'm Sure It Will For R635 000

Back in May we spotlighted an apartment in a new complex called The Square which was a 29m^2 bachelor on sale for R570 000 and renting for R3 300. Today I noticed an ad also for a 29m^2 bachelor in The Square and also renting for R3 300 a month, except now the asking price is R635 000, R65 000 more than 7 months ago.
I'd bet this is the exact same flat.

So why would the price increase if the flat remains unsold? Well if you consider that our seller is probably paying in money every month to cover the bond that is not paid for by the rent; then every month that goes by he loses more money and thus has to sell for a higher price to make a profit. But by raising the price all our seller does is ensure that the flat remains unsold and he continues to pay every month. In 7 months time another price hike will probably be required to cover the newly accrued losses since the last hike.

The new asking price is also especially high when you consider a 61m^2 2 bedroom apartment in the same block is on sale for R839 000.

For any investor who would be looking to buy the place the ROI is now even worse when you consider the price has increased, interest rates have increased but rent has stayed the same.