Now that all South African’s, also the most naive, realise that the residential property is really bursting, a second leak is appearing: the commercial property market is collapsing.

Read the full article in Nosweek this month.

People thought that prime apartments on the Capetonian V&A waterfront were a safe investment.
Wrong.  Dalene Visagie of Seeff, yes, the same Seeff which was shouting in April “Huisprijse sal nie daal” is literally spamming her address book with “urgent sales opportunities with +12% discounts on price reductions.  See below this 158m2 apartment in Faulconier of which the price was reduced from R7,5m to R6,6m.
Also Emelia VD Linde and Karen Miller, the once sales mavens of Seeff are now spamming their address books with massively discounted sales in Victoria and Albert.
The harsh deflationary reality of South African real estate  is slowly dripping in at Seeff.

And yes, the Reserve Bank dropped interest rates by 100 basis points today.  But this won’t stop the massive recession which is hitting SA (6,4% annualised decline in Q1 2009).  On the contrary, with the current loosening of Monetary policy and inflation targeting, an inflationary tornado could hit SA later in 2010, when oil prices surges again.  This will have a devastating devaluation effect on the South African Rand.