For­eign buy­ers keen on buy­ing SA prop­erty

George Herald - Private Property - - Property News -

Spring is in the air, and with it the pleas­ing prospect of the an­nual in­flow of for­eign tourists to South Africa - and prop­erty in­vestors - as the North­ern Hemi­sphere win­ter starts to set in.

"This mi­gra­tion may be dif­fi­cult for us to un­der­stand, given our lo­cal con­sid­er­a­tions about the econ­omy, cor­rup­tion and crime," says Ger­hard Kotzé, MD of the Real­net es­tate agency group, "but one just needs to con­sider the prop­erty value for money that is avail­able in South Africa to ap­pre­ci­ate the in­ter­na­tional in­ter­est in own­ing a sec­ond home here."

Ac­cord­ing to a re­cent re­port re­leased by prop­erty data com­pany Lightstone, that in­ter­est has shown a def­i­nite in­crease in re­cent times, he notes. "For­eign own­er­ship of South African prop­erty was up 42% in Jan­uary this year com­pared to Jan­uary 2017, with 47% of the trans­ac­tions con­cluded in Gaut­eng be­ing over­seas buy­ers, and 36% in the West­ern Cape.

"And we be­lieve that trend is set to gather mo­men­tum as South Africa con­tin­ues to de­velop its re­la­tion­ships with old and new trad­ing and in­vest­ment part­ners. Pres­i­dent Ramaphosa and his eco­nomic en­voys have al­ready se­cured more than half of the US $100-bil­lion for­eign in­vest­ment tar­get he set ear­lier this year, and as that money starts flow­ing into the coun­try it is likely to catal­yse even more in­vest­ment by for­eign pri­vate com­pa­nies or en­trepreneurs with plans to set up or grow busi­nesses in South Africa and live, work and play here." The Lightstone re­port shows that the most pop­u­lar price bracket for for­eign buy­ers in Gaut­eng cur­rently is R3-mil­lion to R4-mil­lion, and the most pop­u­lar in Cape Town is R4-mil­lion and more. "How­ever, there is also strong de­mand in both re­gions for homes priced at R2-mil­lion to R3-mil­lion, which will still buy you a lot of home in South Africa com­pared to the UK or Europe," says Kotzé. "For ex­am­ple, in North­cliff, which is cur­rently the top pick of for­eign buy­ers in Greater Jo­han­nes­burg, the me­dian home price is around R2,2-mil­lion (about US $152 000), for which one can buy a lux­ury three-bed­room apart­ment with stun­ning views or a four-bed­room fam­ily home with ex­pan­sive gar­dens."

He says that in Cen­tury City, the area that is cur­rently at­tract­ing most for­eign buy­ers in greater Cape Town, the me­dian home price is cur­rently around R2,9-mil­lion (or US

$200 000), for which one can ac­quire a lux­ury, fully fur­nished two-bed­room apart­ment in one of the city's most sought-af­ter live-work-and­play precincts.

"Add this type of value to our won­der­ful cli­mate, wide open spa­ces, friendly peo­ple, re­laxed life­style and the rand's favourable ex­change rate against dol­lars, pounds and eu­ros, and it's clear that we have a prop­er­ty­plus-life­style of­fer­ing quite en­tic­ing enough to ac­tu­ally prompt per­ma­nent re­lo­ca­tion and in­vest­ment into South Africa - rather than just "snow­bird" buy­ing, es­pe­cially among those af­flu­ent Bri­tish, Euro­pean and East­ern in­vestors for whom sum­mer is al­ways too short."

Is­sued by Real­net

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.