Price Reduced by R 15 000 to R 935 000I'm sure that 1.57% drop in asking price will really change peoples minds....
Update: And another - "Price Reduced by R 14 000 to R 985 000"
What's that.. 1.4% off? Be still my beating heart!
13 April 2011
Not Selling? Drop The Price 1.5%!
Just got this in my email for this apartment:
Update: And another - "Price Reduced by R 14 000 to R 985 000"
What's that.. 1.4% off? Be still my beating heart!
Update: And another - "Price Reduced by R 14 000 to R 985 000"
What's that.. 1.4% off? Be still my beating heart!
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14 comments:
Ah yes. Perspectives. I used to live there and I seem to recall the average price for 2 bed 2 bath apartments in that block used to be 1.2/1.3m.
On gumtree at the moment there are 9 ads for 2bed/2bath apartments in Perspectives, all for around 955k. I also found one that's still going for 1.3:
http://www.bidorbuy.co.za/item/32151540/CAPE_TOWN_CITY_CENTRE_714_Perspectives_ROELAND_STREET_Apartment_2_bedrooms.html. Good luck with that.
Sadly, I don't have figures for the number of apartments for sale in the city bowl, but I suspect there is a serious glut in apartments for sale in the City Bowl, just looking on gumtree etc. and considering all the new apartment building that were renovated or built in the last decade.
So? How much should buy one of those shoe-boxes for?
How about THIS one. A "penthouse" that's valued at 1.2 mill but might accept half that amount. As in 50%? Seriously?
@ last anon.
I'd like to see that bank valuation because I believe this is BS.
Perhaps a bit off topic, but does anyone know what rate banks are granting on bonds right now? I built a house last year using a building bond, with what I thought was a high rate of Prime-0.5% ( Absa said building was high risk so once the house was complete I could ask for a reassessment) I have just asked for a better rate as the value of the house very conservatively, even in the shitey market we are in, exceeds the bond by about 2 bar. Absa have come back with Prime-1. WTF ? Should I accept this or try another bank?
Prime - 1 is ok I think. My bond was Prime - 1.25 from a few years ago. I just sold my house and the buyer got slightly more than prime, house value exceeds bond by about 200K.
slightly more than prime?
holy crapballs
rates I hear are between -.5 and -1 off of prime.
1.5% is very much in line with what FNB's property strategist, John Loos, predicts for 2011.
So in fact, the seller hasn't changed his selling price at all.
http://www.property24.com/articles/property-market-little-to-cheer-about/13426
The Sheriff will sell it for him.
"Beijing March New House Prices Plunge 26.7% M/M"
http://imarketnews.com/node/29203
The prices can come down 1.5%, 15% or 35%. The fact remains that there aren't many buyers at the moment.
People have lost interest in property because of the long, protracted "correction" that is never appearing to happen, at least not in the general media.
People are up to their eyeballs in debt. First time "buyer's" can't afford diddly-squat on first time buyer salaries. Why buy something that is only going to depreciate when you can rent, buy a car and afford groceries for the same price?
Rent is usually gauged on what the property is worth. With the decreasing nominal house prices, should rent be coming down too?
If it doesnt, surely it would get to the stage where it would be cheaper to buy then rent....
@Jim,
you assume that the buy/rent ration is at a normal level. In my experience this is completely out of line. House prices need to fall by min. 50%. Only then the return on the rent would be ok.
I pay 12000 Rand rent in a 4.2 Million property (was bought 4 years ago). Substract about 2500 in levies and taxes. That would make roughly a 2.5% return per annum.
@ last anon - ouch, that is an awful buy-to-let investment IMHO.
@ previous anon - I think the fact that there are more people looking to rent than ever before is in fact pushing up rental prices. At least that is what I have seen in Cape Town's desirable areas. Having said that, the ratio of rent/buy is still totally out of whack as illustrated by the other comment.
Rents are usually a truer reflection of what something is worth because they adjust more easily to the supply/demand.
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