Property Baffled

I took a quick look at property prices in our area, expecting to see that they’d dropped massively, but was surprised to see that the value of our place appears to have gone up over the last couple of months.

This makes no sense, in light of all the articles in the press and the general ‘feel’ of what’s going in Dubai at the moment.

Are these ‘list prices’, with sellers potentially offering big discounts, people in denial, or investors simply holding on to properties they bought in cash – cash that they are happy to have sit around in an empty apartment till things improve?

I had a cold call from an estate agent today, asking if I wanted to sell. We don’t, but it’s almost tempting to pretend that we do, just to get a feel of what the real situation is out there. With rents elsewhere supposedly dropping slowly, I’m wondering if we’ll see any of our neighbours cashing in and moving out?

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2 Responses to “Property Baffled”

  1. Riz Says:

    Same here in the UK. When I look at property prices in the local paper, I only see a marginal difference. What I know, however, is that turnover has completely dried up. I also know some folk who have their house on the market at a high price, in case someone comes along. I guess many folk are doing this, trying their luck at the old prices.But what it mean is that the prices we see in the ads are probably not the true clearing prices.

  2. Seabee Says:

    Yes, I think what we’re seeing is probably the asking price rather than the actual price they’d get – if anyone makes an offer that is.
    Same’s been happening in Australia with many vendors refusing to accept the reality of the current prices and trying to hold out for what it would have brought a year ago. There are no offers but the ad continues to run with the price they’re not going to get.

  3. Dubai Properties Says:

    That’s something that is very rare in today free fall market that rates are going up even if a bit only.

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