A large percentage of the world’s super rich pays cash for their pricey property purchases.
This seems to also be the case in SA where the super luxurious market is characterised by properties costing more than R10m.
Rael Levitt, CE of Auction Alliance, says 60% of buyers that purchase properties of more than R10m do so without bond finance.
Knysna on the Garden Route remains a sought-after destination for super rich buyers, foreigners as well as South Africans, says Ling Dobsen, area principal for Pam Golding Properties (PGP).
She says the area has even during the recession maintained its sales in the price range of R10m and above. The sales during the recession were mainly to local buyers, who are less affected by the worldwide economic downturn than international buyers.
She says 80% to 100% of PGP’s sales in Knysna are to cash buyers.
“The reason why the area is luring so many super rich buyers is because of the privacy factor in a breathtaking natural environment with several options.
“Buyers can choose between homes with a sea view in the Sparrebosch estate that surrounds the Pezula estate, the Pezula Private Estate and a sumptuous waterside lifestyle on the Thesen Island development.”
The Pezula estate stretches over 612ha, of which only 15% is allocated to residential development. The prices of properties in the estate range between R9,8m and R38m. Dobsen is busy finalising two deals at the estate, one totalling R16m and the other one R13m.
The cherry on top in Knysna is still the Thesen Island development, a residential marina consisting of 19 individual islands. PGP is currently marketing a luxury property at R18m as well as a house on its own island for R14,5m.
She says interest in the Knysna Heads has increased of late and several properties were sold for between R11m and R13m.
On the global front, super rich cash buyers from China and Hong Kong are busy buying into the London housing market, the New York Times reported on its website.
These buyers increased from 0,5% to 5% over the last 12 months of all London sales to foreigners in the price range between £500k and £1m. – Elma Kloppers, Sake24
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