Reader KS writes:This apartment has been on the market for at least a year at R1495000. Now it's asking price is R1535000. I guess when things aren't selling the logical plan of action is to raise the price R40 Gs.
Me thinks someone is trying to recoup some bond payments...
12 comments:
Nice view and balcony. The interior needs updating though. It's not a crazy price and the levy/rates are low. I mean look what 3 bedroom apartments in the CBD rent out for these days. You won't find much under R10k a month. The correct price for this is probably R1.25 million.
Among the properties I monitor there has been a sudden spate of increases in asking prices. Are estate agents drinking extra-concentrated Kool Aid and telling their clients about an imminent revival in the market?
This is nice flat, I agree with Anon that the rates are very low. But I'd be leery about paying even R1.25-m for this place for two big reasons.
Firstly the building next door is one cracked window pane short of being a full-blown crack-den - don't know who lives there but it looks HORRIBLE from the street.
The second deal-breaker for me is the wind. The ad proudly announces "high up in Vredehoek". God spare me from being high up in Vredehoek: 260 days a year of pounding wind slamming the roof around (ever tried sleeping in Vredehoek during a gale?) and blowing in endless dust under doors and through cracks in windows.
Off topic but feel the need to share- a friend rents out a house using a Remax agent - except the agent has now vanished taking the deposit and a months rent - my friend is out of pocket 20 grand and Remax HQ seem to be washing their hands of the situation.
Meanwhile the tenants, pissed off at losing their deposit, have decided to stop paying rent
Ahh the joys of being a landlord.
Seems that estate agents are having a few cash flow problems.
Incidently, hop over to https://housepricesouthafrica.wordpress.com/blog/
where the blogger has kindly taken up my suggestion to show the SA real price graph - and what a beaut it is - 50% overvalued anyone ... seems about right... no wonder nothing is selling and agents are stealing from the cookie jar.
Property has been selling, but often through knock-down auctions, though liquidation sales are apparently trending downwards. The SA banks and real estate industry has pulled a masterful trick of creating a dual market over the past few years. One which is maintained by the property ads in weekend papers, the other which is to be found hidden on the auction pages. The combination of these two markets has given us the muted price movements relative to UK and US markets. There is also a case to be made for a fundamental re-rating of SA property post 1994, which finally gained steam when interest rates dropped in early 2000's, and may be more "sticky" than the gains made in UK, US, Mediterranean Europe. This price stickiness in SA persisted despite strength in the rand. If the rand weakens dramatically, this would also mitigate against a drop in SA property prices. Employment level and cost-of-living adjustments (COLA) amongst med-high earners is another significant driver. Many opposing forces, always difficult to predict outcomes.
first Anon.."correct price is R1.25 million". May I ask how you came to that figure? If its been on the market for over a year, and if its "decent" like you claim, I'm pretty sure offers around R1.25 would have come in. For the area its still shit loads. If you want a better gauge of the correct price I suggest looking at what it was valued at in the early 2000's. before this speculative craze got out of control.
AND..if one HAD to buy in that area I wouldn't look further than High Cape/ Devils Peak. www.ridsdale.co.za have loads for sale and while still overvalued they offer better value compared to other places/area's in the CBD.
I've been in the US and know its "old news" but surprised there's been no mention of Wendy Machanik on this site. She's basically been running a ponzi scheme. Pam and Seeff next ?? This SA property market is so out of whack with reality !!!!
@ ex Wall Street. The comment was actually "the correct price for this is probably R1.25". PROBABLY. Don't attack someone with false facts and quotes. And I'm still looking for the word "decent" in that comment.
Hi Anonymous (11:05 AM)
I think you need to read the post by "ex Wall Street" again. It seems very polite and really does not appear to be an attack.
I base this on reading phrases like:
"May I ask how..."
and
"I suggest looking at ..."
LS
great blog...
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@ anon...my we are a little drama queen. Botton line is you came up with that figure and I,in a polite manner (as pointed out by LS), asked how?
Based on your tantrum i figure you're a saleman of some sort who fancies himself as a bit of an expert in property valuations.
@ ex Wall St...HAHAHA..NICE ONE.
@Anon- i hear Madam Zingara are looking for some queens
@ 1ST anon...are you for real? I would say your comment describes the place as "better than decent". You def sounding off a bullish/BUY tone on the place.
and like the other posts said...enough with the drama you clown.
It is not always the agents that push up the prices (I can’t believe that I am defending them!). I’ve had more than one honest conversation with agents that are exasperated at their clients insistence on increasing the price of a property that just isn’t moving. The SA property market seems to think it is devoid of any connection to the real economy (and hence reality). Owners and landlords don’t understand the concept of market dynamics and seem to think that their property value must keep going up each year. My landlord just slapped on an 8% rent increase (at 1 week’s notice) merrily thinking I would accept it; now I’m moving out and he is about to be lumped with an empty house. It is bare faced greed and it is up to the buyers and tenants reject these unrealistic prices.
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