Continental buyers investing in South African
Data indicates that even when wealthy foreigners from Europe were nervous regarding the South African property market, investors from closer to our borders were not. From children going to school in SA to simply wanting a home with an iconic view, the local property market continues to be attractive
While foreign investment in South African property went through a bit of a rough patch during some of former President Zuma’s tenure, the local market has always enjoyed the ability to bounce back quickly, which says something about the desirability of the country to land investors. We often hear a great deal about foreign investment and most of us think of ultra wealthy Europeans and Americans but, interestingly, a lot of the investment actually comes from closer to home, in the form of neighbouring African nations.
According to Dr Andrew Golding, chief executive of the Pam Golding Property group, many buyers are coming from Zimbabwe, Zambia, Namibia, Nigeria, Botswana, Kenya, Mozambique, Angola, DRC, Ghana and Gabon, among others, and they’re purchasing property for around R800 000 to approximately R5 million.
“Some with children attending schools and universities here look to buy a home where they can reside when visiting during vacation periods or purchase a well-positioned apartment as student accommodation for their adult children, coupling as a sound investment. Some investors look to own a getaway holiday home in a highly desirable location, such as Cape Town’s Atlantic Seaboard, Southern Suburbs and the Blouberg area; the Cape’s Boland and Overberg regions, namely Stellenbosch and Somerset West or Hermanus, Kleinmond and Onrus; or the scenic Garden Route, for use by their immediate family for short or extended time frames during the year.”
While goals and areas of interest vary, this reinforces the message that the local property market always retains ready customers, keeping prices healthy even when investors from off continent area are scarce. More information shows that if you’re considering purchasing a home in or around Johannesburg, then you’re probably getting in at a good time. Market confidence is on the rise as President Ramaphosa carries through on promises to stabilise the government.
