Property favours foreigners FOREIGNERS are continuing to invest in Cape Town’s property market on the back of a weaker rand, the city’s popularity as a destination, and value-for-money houses in the luxury segment of the market. However, they comprise only a small portion of the luxury property market pie because the biggest percentage of properties in the more than R20 million price range is bought by wealthy South Africans, say residential property experts. Mike Greeff, chief executive of Greeff Properties, an exclusive affiliate of Christie’s International Real Estate, said foreigners continue to invest in Cape property. The December 2014 Propstats figures indicate that these buyers accounted for 11.6 percent of the City Bowl’s sales revenues last month. “The allure of the City Bowl is indisputable in that properties offer easy access to the buzz of the inner city and its nightlife, the beaches of the Atlantic Seaboard, and the convenience of MyCiTi transport.” Greeff said buyers were mainly from Germany, the UK, Switzerland, United Arab Emirates, Australia and Botswana. |The average selling price of properties bought by them in the City Bowl was R2.4m. Greeff said Propstats figures recorded for the Atlantic Seaboard last month showed that foreign buyers were responsible for 12.6 percent of the total sales revenue in this region. He said for the southern suburbs, 6.6 percent of total sales revenue for the past month was attributed to foreign buyers, with the average selling price R6.8m. “This was identical to the listing price, which is a symptom of the tremendous stock shortage and high demand for homes in the southern suburbs, where we’re seeing a trend of rising selling prices. Cape Town continues to be a top destination, and with the current drop in the oil price, it’s anticipated that tourism during 2015 will increase, therefore the ground is being laid for sellers to tap into the foreign investment buyer pool. The rand is still at a very attractive rate for anyone earning US dollars, pound sterling and euros.” Story: Joseph Booysen (Read the full story in todays Cape Argus or get the app at myindependent.co.za)
Posted on: Tue, 20 Jan 2015 06:15:01 +0000
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