Is the CT property bubble bursting?

terencej said:
Just a short google and I am seeing different opinions from what you guys are saying

https://www.moneyweb.co.za/investin...board-house-price-growth-now-barely-positive/
Atlantic seaboard is dropping
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That graph is showing a drop in growth, not a drop in value.

But yes, the property prices on the Atlantic Seaboard are crazy and unsustainable. You can rent a R6M place for R20K a month. That's purely speculative investing and cannot last forever.
 
People are still trying to squeeze value out of Cape Town property prices, so I don't see it dropping anytime soon.

I just had a look and classic "bargain" areas like Woodstock are still rising in price. Claremont where I looked before is similarly looking to just become more expensive.

IMO the people still want to buy, they just can't afford to buy in the CBD or surround (ie> Green Point, Sea Point, Fresnay, Clifton, Camps Bay). Which is raising prices elsewhere. Eventually the surrounds will catch up with the CBD and surrounds and the cycle will start over again.

terencej said:
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Sea Point prices were increasing around 40% YoY. My apartment in Sea Point went from R2m when I bought it to R4m in three years (or some I'm told). That fact that it dropped to 2% growth is no surprise to me.
 
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This opinion piece reads like some classic fud. First set the scene of losing lots of money, then sneakily add in a piece about finding a more reasonable agent. Hmmm, I wonder who that agent will end up being?
 
TechGirl04 said:
I own a flat in the Northern Suburbs and rent it out. The agent I use recently told me that more and more people are simply not able to afford CT rentals in most areas and it is forcing landlords to drop the rental prices. The agent might be feeding me a bunch of BS, but I can kind of believe it with the ridiculous rental prices in some areas.
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I believe it. R9k for a two bedroom FLAT. And a two month up front deposit. :crylaugh:
 
Slootvreter said:
I believe it. R9k for a two bedroom FLAT. And a two month up front deposit. :crylaugh:
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Where is that? A bachelor flat in my block in vredehoek is being rented out for R10k a month.
 
I recently moved to another place. I could literally pick and choose which place I wanted as they were all available for some time without any takers. few years ago when I moved in I literally had to make up your mind on the spot and put in your application as there were so many people interested
 
C4Cat said:
Where is that? A bachelor flat in my block in vredehoek is being rented out for R10k a month.
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I am renting in the Mutual heights building(Loft apartment) for R9k.
The smaller apartment next to mine sold a year ago vir R2.4mil.
 
terencej said:
I am renting in the Mutual heights building(Loft apartment) for R9k
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That is right in the city center right?
Bachelor (0), 1, 2 or 3 bedroom?

Think I may have been in that building before, is it right next to the Eastern Food Bazaar?
 
terencej said:
I am renting in the Mutual heights building(Loft apartment) for R9k.
The smaller apartment next to mine sold a year ago vir R2.4mil.
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That's a really interesting old building...
 
Gnome said:
That is right in the city center right?
Bachelor (0), 1, 2 or 3 bedroom?

Think I may have been in that building before, is it right next to the Eastern Food Bazaar?
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Loft - 1 bedroom. Yes that building exactly.
 
Slootvreter said:
I believe it. R9k for a two bedroom FLAT. And a two month up front deposit. :crylaugh:
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There was an ad for a 13k 3 bedroom house. 2 month deposit + 1 month rental

Property was aimed at a young professional couple and there was a requirement for a combined income of R71k I think. I was like, then these customers you're attracting may as well buy their own property lol.


Then you get rental ads like these:

https://www.property24.com/to-rent/belgravia/cape-town/western-cape/8736/106312357
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Which comes with these kinds of requirements

COST BREAKDOWN
Application fee of R120 (payable upfront, per person, non-refundable)
Lease Administration fee: R1, 000 (Once off, non-refundable and payable together with the deposit)
Double Damage Deposit: R20, 000 (Payable within 48 hours once application has been approved or down payment over a period of 2/3 months can be arranged with valid reason & approval from landlord)
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smb3 said:
There was an ad for a 13k 3 bedroom house. 2 month deposit + 1 month rental

Property was aimed at a young professional couple and there was a requirement for a combined income of R71k I think. I was like, then these customers you're attracting may as well buy their own property lol.


Then you get rental ads like these:



Which comes with these kinds of requirements
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Ugly green

And lol 21k upfront. wtf.
 
House in a complex I am also renting in, in Durbanville has been standing empty for 2 months now. Original asking price was R13500, see now it has dropped to R12400. Good news for people renting if the prices are coming down because it is a bit crazy at the moment.
 
Wait for 3-6 months and you will pick up some serious bargains , there is an oversupply at the moment but developers are hanging onto their rediculous pricing as they need to make their returns. Once they become desperate to bank some money, it's the perfect opportunity.
 
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