High end properties resisting price drops, middle market falls…
It certainly has been an interesting year for property rentals in the North of Mauritius so far. As expected, most of the prices that are being acheived have dropped. The length on market has also substantially increased albeit only when owners are resistent to adjusting their asking prices.
This diagram below perfectly illustrates the effect of CORRECT pricing on the market.
One will notice that the higher the percentage above market value, shown on the left-hand side of the pyramid, the less interest on the right-hand side i.e. potential tenants. Naturally we could add another parameter to this and that would be TIME, the bottom of the pyramid being shortest time spent on market and the top end being longest time on market.
Quite often we see an over priced property sit on the market for many months, no interest, no viewings and no income for the owner, its quite sad because quite often the potential client(s) are in the market but because the property has been incorrectly priced it is over-looked. Some observations over the last couple months in terms of price drops:
House Rented Calodyne:
Originally asking Rs80 000 p/m
Price achieved Ra55 000 p/m
House Morcellement Swan Pereybere:
Originally asking Rs50 000 p/m
Price achieved Ra32 000 p/m
House Bain Boeuf:
Originally asking Rs75 000 p/m
Price achieved Ra50 000 p/m
It is not always the case though, we have noticed that the higher end of the market, the extravagant luxury properties, for the most part have remained quite resilient:
House Belle Vue Harel:
Originally asking Rs115 000 p/m
Price achieved Ra100 000 p/m
House Hillside:
Originally asking Rs100 000 p/m
Price achieved Ra90 000 p/m
House Belle Vue Harel:
Originally asking Rs110 000 p/m
Price achieved Ra95 000 p/m
House Cap Malheureux:
Originally asking Rs220 000 p/m
Price achieved Ra200 000 p/m
Quality and location naturally hold their value, but more so we think the reason the values hold on these particular properties is basically because of the scarcity, there is a real lack of choice when it comes to modern, spacious well built homes for expatriates.
Well thats our little (obvious) food for thought this month!
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