Lots of foreign enquiries coming in

The beneficial impact of foreign investment in SA property should not be under-estimated, especially in the face of early indications that such investment will increase this summer.

And although restrictions on land ownership such as those mooted by the South African government are not uncommon worldwide, care should be taken not to scare away foreign capital, warns Chris Cloete, owner of the Chas Everitt International Northern Suburbs office in Cape Town.

"Countries such as China, Mauritius and especially Dubai are now doing their utmost to attract foreign investors, and South Africa needs to stay competitive. Foreign business investment and tourism often go hand-in-hand with local property ownership and overseas buyers often make use of residential property to invite friends and family to visit the country they have invested in - South Africa being no exception," he notes.

According to Stats SA, tourism contributed eight percent to SA's gross domestic product last year, generating income of more than US$19m in foreign earnings and providing employment for at least 1,2-million people.

Cloete adds that long-term investment, which is often linked to property investment, is much more valuable and less risky to the country's balance of payments than fluctuating share market investments.

Meanwhile, Louis Harding of the Chas Everitt International Western Seaboard office in Cape Town says the local property market still offers foreign buyers quality at affordable prices. "Furthermore, SA's banking system is established, dependable and technologically advanced, giving the country some headway in attracting foreign investment in the property sector."

Andre de Villiers, principal of the Southern and South Peninsula cluster of Chas Everitt International franchises, predicts an increase in foreign buyers this summer, based on a substantial increase in internet enquiries over the last three months.

"There is traditionally a strong correlation between winter enquiries and summer sales," he says. "And our experience in recent years has been that foreign enquiries at the British and European expos we attend in the northern autumn benefit sellers for up to six months as many buyers do preliminary investigations and then visit the country in our summer to look for property," he says.

Di Reid of the group's City Bowl and Atlantic Seaboard offices says she has been pleasantly surprised by the increase lately in the number of 'walk-in' international buyers visiting the group's new office in Camps Bay.

"I believe our exposure of local property at the recent international exhibition in London, coupled to the 2010 World Cup hype, have created new interest in Cape Town property. But even though our prices are still competitive, foreign buyers certainly do their homework before buying, a fact that local sellers should keep in mind."

Foreign sales have been surprisingly steady throughout the winter in towns such as Franschhoek and Paarl in the Cape winelands, says Henriette Basson, co-owner of the Chas Everitt franchises in these Boland towns. "We have seen a definite increase in overseas enquiries, especially for property under R2m. Buyers are much more informed about prices than a few years ago and consider their investments carefully," she says.

For more information contact 082 442 7076 click here to visit the website.

Readers' Comments
Have a comment or question about this article? Tell us about it..

Looking for a new home?
To find a property to buy, visit Find a Property and view listings of properties in all areas. Check out the PropertySPI and get an affordable online report on actual sold prices of properties in your area.

Property News
Click here for more property news articles.