STILL BUY YOU AN CANYOURRANDS
Are driving offshore economic uncertainties with political and Rand volatility, coupled locals still able to play offshore? aspirations. But are property investment
for many South Africans able to afford it, London has been top of the pile when it came to growing their offshore property investments. Considered by many as the most stable sector of the UK property market, residential property has been the preference for more than 150 South African investors who have invested here, through Propwealth, over the past five years.
“South African investors see the UK, with its low interest rates, very high tenant demand, stable economy and strong economic outlook as a very safe investment environment. They feel comfortable with UK property as the purchasing procedures are very similar to SA and property is highly regulated,” says Craig Illman, South African director of UK-based property company Propwealth. that they used to be.
In London, 30 to 40 deals annually through Pam Golding Properties International & Projects division (PGP) were commonplace for South Africans investing into property here. Today, those deals have fallen to fewer than 10, managing director Chris Immelman tells finweek. Even buying a one-bedroom apartment on the periphery of prime central London will cost South Africans £750 000 (or roughly R16.5m).
Five years ago £180 000 would have bagged investors a one-bedroom apartment in Royal Arsenal in Greenwich, a massive development with a Crossrail station in the then more affordable South East London. Those same one-bedders are now fetching £450 000 and upwards, Illman tells finweek.
“Many hotspots around Crossrail are flat-lining now as profits have already been realised by investors, and developers are adding a premium to prices,” says Illman.
Even areas within 30 minutes’ commuting time to London – towns like St Albans or Seven Oaks, both popular
Craig Illman South African director of UK-based property company Propwealth