foreigners cash in on SA property
19 August 2008
Even though times are tough across the globe, growing numbers of buyers from the Middle East, Asia and even Russia are shopping for property in South Africa.
Ian Slot, managing director Seeff Atlantic Seaboard, CBD, V & A Marina & City Bowl, pointed out that while many foreigners were buying purely for investment, others were looking for retirement or holiday homes. Some were even relocating. In addition, the build-up to the 2010 World Cup was undoubtedly fuelling growth in the South African property market and would continue to do so during the countdown to the event. "Everything a foreign purchaser might desire is currently available in South Africa," Slot pointed out. He said property development over the past eight years had covered the full gamut of residential property from gated estates through to beach front villas and golf estates.
He said the strongest and most consistent growth tended to be on the Cape Coast in areas such as Clifton, Bantry Bay and Camps Bay. The Victoria and Alfred Waterfront had seen the largest growth and ongoing interest in the Victoria & Alfred Marina together with the commitment of the owners to develop it further, meant this would continue or even increase.
Slot added that areas around Johannesburg and across Gauteng would see significant growth as Johannesburg continued to grow and develop as the economic hub of Africa. From an international buyer's perspective, he said a number of factors would continue to drive South African property sales for the next five years. "First, South Africa has largely escaped the sub prime fiasco. The introduction of the National Credit Act (NCA) in South Africa before the sub prime crisis hit, made it effectively impossible for such a scenario to develop here."
Secondly, the South African property market had been very stable for a long time with strong upward growth over the past eight years. "Obviously, this began tapering off with the general slow-down that has occurred this year. However, it remains very stable with even greater prospects of stronger growth expected in about 18 to 24 months' time," he said.
Slot said he believed that foreign property sales would not be restricted to new developments, but would encompass existing quality properties.