‘African elite’ snapping up prime SA properties
A GROWING number of buyers from elsewhere in Africa are snapping up properties in upmarket South African suburbs, some paying as much as R32-million for houses.
High net earners from the continent now comprise 20% of foreign investment in South Africa’s residential property market.
Among the recent sales to African buyers were two properties in Johannesburg, which were sold in June by Lew Geffen Sotheby’s International Realty, to two Zimbabwean businessmen.
A four-bedroom, four ensuite house with four reception rooms on 4 000m2 of land on Saxon Road, Sandhurst, sold for R32-million, while the other, a five-bedroom home on Empire Road, went for R25-million.
A Dainfern Valley property sold in December to a Mozambican for R17-million.
The home was described by Pam Golding Properties as a “quintessential Floridianstyle architectural masterpiece that commands an elevated position overlooking a park and boasts 180º northfacing views”.
The five-bedroom house boasts “generous flowing ambassadorial entertainment areas”, marble staircases, an atrium and a “Hollywoodstyle” entrance hall.
A Nigerian paid R26.7-million in April for a two-bedroom unit with a patio offering sea views from Victoria Road, Clifton, on Cape Town’s Atlantic seaboard.
Andrew Golding, chief executive of Pam Golding, said the company recently sold a unit at the V&A Waterfront for R25-million. Other highend homes sold to African investors include one in Sandton to an Angolan for R14.95-million, a home in Constantia for R11.35-million to a Kenyan, a house in Fourways for R8.3-million to a buyer from Gabon and a house in Somerset West in Cape Town for R7.4-million to another Angolan.
According to a recent FNB estate agent survey, the number of foreigners snapping up residential property in South Africa was growing — apparently because of the weakening rand.
But Europeans still make up the bulk of foreign buyers into the South African residential properties.
According to Pam Golding Properties, its top 10 foreign buyers this year were investors from the UK, Germany, France, US, Switzerland, Italy, Zambia, the United Arab Emirates, Namibia and Mozambique.
FNB’s household and property strategist John Loos said that since 2012 the property
If it only constitutes 4% of total land buy in upmarket suburbs, I don’t see it as a threat
market had regained favour with investors, with growing interest coming from the rest of Africa.
“The rest of Africa’s economy is growing quite fast. I get the impression that a lot of them do like South Africa for the facilities such as retail. The African elite come for slightly different reasons compared to European buyers who want to be near the sea,” said Loos.
The 20% figure for 2013-14 was a marked improvement from previous years where it averaged 15% or less.
Jonathan Davies, of Pam Golding Properties in Sandton, said the market was seeing an interest from buyers from Ghana, Nigeria, Zimbabwe, Kenya and China.
“Prices vary from R2-million to R50-million. Some are relocating for business reasons and some are seeking investment,” he said.
The rise in foreign ownership comes as the government prepares to introduce legislation to limit foreigners buying land in South Africa.
Lew Geffen, of Lew Geffen Sotheby’s International Realty, said foreign property ownership should not concern the government because it was a small percentage.
“I think the new legislation is a wrong move. Direct foreign investment needs to be looked at as a strategy for South Africa because without that we would be in worse trouble. If it only constitutes 4% of total land buy in upmarket suburbs, I don’t see it as a threat. There’s a global community of rich people buying all over the world,” said Geffen.