Gauteng the top destination for foreign property investment
A new report shows that South Africa remains an attractive option for global property investment, with Johannesburg commanding the largest slice of the foreign investment pie.
Gauteng the top destination for foreign property investment
South Africa continues to roll out the red carpet for foreign investment, but when it comes to property, where do overseas buyers focus their capital on? According to a new report by Lightstone properties, the country’s two leading cities, Gauteng and the Western Cape, top the bill for those looking to build an overseas portfolio.
The report states that between January 2017 and January 2018, foreign ownership saw an increase of 42%, with 47% of sales happening in Gauteng and 36% in the Western Cape. Sales for Gauteng homes in the above R4 million value band were slow to pick up but the province was the top performer for homes between R3 million and R4 million, with this segment experiencing growth of 39%. By comparison, the market for above R4 million homes have been busy for the Western Cape while sales for homes in the R3m-R4m range cooled down. Interest in the R2 million to R3 million value band remained stable for both provinces.
The report also showed which suburbs were the big winners among transactions. Lonehill, Sandton, which used to be a popular investment choice, has declined while Parkhurst showed stronger growth. In Greater Johannesburg, foreign investors are losing interest in Parkhurst and are setting sights on Northcliff and Glenvista instead.
Things are more widespread in the Western Cape. A popular area, Sea Point, stepped aside to make way for up-and-coming suburbs, Observatory and Rondebosch, currently a hotbed of new property developments. In the northern suburbs, sales were prevalent in Century City and Table View
The report says that foreign buyers are drawn to Johannesburg due to the many industrial and commercial opportunities the city has to offer, while Cape Town’s spectacular natural beauty and vibrant lifestyle scene were the main factors in determining value to foreign investors.
With President Cyril Ramaphosa’s pledge to boost investor confidence in the country, this market is expected to remain in good shape as more foreigners will look for opportunities in South Africa in the years to come
