Lockdown blues: Foreigners buy mansions in SA
REAL estate agency Seeff says it has made over R178 million (US$11,68 million) in sales to foreign buyers across the Atlantic Seaboard and City Bowl areas over the last four months alone, including a luxury villa in Fresnaye sold in December, for R36 million (US$2,36 million), to a buyer from Dubai.
Ross Levin, managing director for Seeff Atlantic Seaboard and City Bowl, said there has been a notable uptick in the market including demand from foreign buyers, especially from the European countries which have experienced hard lockdowns and are in their winter months.
“We have seen several of those citizens flock particularly to Cape Town to enjoy the summer months here and have also seen a massive influx of clientele from the African continent, high net-worth Nigerians in particular,” he said.
“ is has mainly impacted the short term rental market of luxury properties.”
Seeff said sales to foreign buyers have included the United Kingdom, Switzerland, China, Malaysia, Italy, the United States, the United Arab Emirates, Nigeria and Greece.
However, the group said that enquiries are coming from across the board, including Northern European countries such as Germany, the Netherlands and more.
Other high-value transactions include three sales in Camps Bay, being R17,7 million (US$1,16 million) to a buyer from the US, R19,5 million (US$1,28 million) to a buyer from Malaysia and R21,5 million (US$1,4 million) to a buyer from the US.
Big sales
e latest statistics for the Atlantic Seaboard and City Bowl also shows that there has been a general uptick in sales to foreign buyers in December, with these representing about 20% of all transactions compared to just 7% for the previous two months, being October and November.
According to an FNB property report, sales to foreign buyers (non-residents) amounted to around 4,7% of all sales for the second quarter of 2020.
Coastal areas and lifestyle and golf estates are often favoured by foreign buyers. ey do not just buy for own use, many of them invest in properties for the rental market as well.
Levin said that there has been a welcome uptick in the market across the Atlantic Seaboard and City Bowl for full title houses in the R10 million (US$659,885) to R20 million (US$1,3 million) price range and sectional title below R5 million
“Aside from foreign buyers, we have also seen an increase in sales to semigration buyers, especially from Gauteng and KwaZulu-Natal,” he said.
Levin added that Seeff has concluded a number of high-value sales including the sale of two properties to the same buyer for R33 million (US$2,16 million), and a Bantry Bay apartment sold for R20,2 million (US$1,32 million).
He said agents expect that once there is a return to normalcy with borders and travel open, that there will be a notable further pickup in demand from foreigners who, not unlike South Africans, will be looking to spread their wings and enjoy a better quality lifestyle.
“ e Seeff Property Group has also seen a welcome return of interest from foreign buyers in many other areas, especially coastal hot spots such as the Cape coastal areas, the Garden Route and all the way up to the KZN North Coast and even the South Coast.” — BusinessTech