Cape Town property slump
Artificially high property prices and oversupply are the reasons given for a property slump affecting property in Cape Town according to several agents based in the City Bowl.
The price of high end apartments in the city centre are dropping fast and owners who purchased property during the boom are losing hundreds of thousands of rand when they eventually find a buyer, although buyers are spoilt for choice as there is no shortage of apartments on the market.
Prior to the downturn in the Cape Town property market apartments in the CBD were fetching up to R28000 per square metre but today can be bought for as little as R17,000.
Many owners of high profile apartments have been waiting years for a buyer despite dropping the asking price in some cases to below the price they paid and according to experts the market will continue to deflate for some time yet.