High density properties are going as high as USD 600 while properties in medium density areas fetch up to USD 900, increasing the number of rent defaulters. The situation is similar to the hyperinflationary period before the new government was formed in 2009.
The situation had changed when the new government introduced the multi-currency system.
Property analysts criticised the high rentals saying, they were unjustified in the absence of significant improvements on the property.
The Estate Agent Council of Zimbabwe said:”All that glitters is not gold and a desperate person or highest bidders are not consistent. Finding a tenant is now more of an auction. Proper valuations should be done in order to charge justified rentals.”
EACZ also said rentals displayed in newspapers’ classifieds were exaggerated.
Prices of residential properties were also distorted with greedy sellers not wanting to carry out property evaluations.
Properties director, Prosper Madzime, described the property market as “overpriced”.
Madzime said there was a tendency by property sellers to be guided by prices displayed in newspapers, saying sellers should not compare prices for properties in the same area because houses were different. Properties with extras such as swimming pools, tennis or basketball courts and were near recreational facilities should fetch much more than those without.
He said his research had shown that only those properties where proper evaluations had been done and priced right were not staying long on the market.