South African property discounts

A growing number of South African property owners are radically cutting their asking prices in order to sell their homes, presenting prospective purchasers with a potential bargain, according to property auctioneers The Alliance Group.

Rael Levitt, chief executive of The Alliance Group, commented: “Homeowners are now setting asking prices at about 10% below their peak. The supply of property for sale in South Africa has outstripped demand in the past three months, which is the first time this has happened in the past six years.

"There is no doubt that sellers are rapidly becoming far more flexible and realistic due to a flood of stock hitting the market with less and less buyer uptake.

"It's a classic case of supply exceeding demand and despite South African residential real estate experiencing growth of 300% in a relatively short time frame, reality is now dawning on homeowners that values don't only go upwards but are in fact now decreasing."