Property globalization increasing

We have seen increased globalization of the property industry in recent times, with foreigners buying properties in South Africa and local buyers venturing offshore. Is this factor helping to drive the South African market? Samuel Seeff believes that we are only scratching the surface.

Globalisation of the property market today is an undeniable fact. If you are in the South African property market, you will be aware that international buyers are here, and that they have an influence. They may be responsible for less than 1% of property sales value nationally and only 3% in the Western Cape - but in certain areas there is a more definite influence. This can be seen especially in coastal areas such as Clifton, Camps Bay, the Garden Route and certain parts of KwaZulu-Natal. The 2010 Soccer World Cup is already having an influence in this respect, especially on sales of apartments in Cape Town's CBD – and this is set to hot up, the closer we get to kick-off.

There is also the growing trend of ex-pats coming home – or buying over here for when they do finally come home. They buy anywhere in South Africa (especially back where they originally come from) - from Langebaan to Richard's Bay, and all in between! Our agents held a one-day expo in London in May, at which over 70% of a new development in Woodstock sold to South African ex-pats! We are also contacted by many potential buyers elsewhere in Africa who want to buy in or relocate to South Africa, especially Gauteng, which is seen as the powerhouse of Africa.

International linkages are essential in order to provide buyers and sellers with the best possible service across all the different markets. Property enquiries aimed at the South African market are channeled to Seeff from all around the world through, among others, our association with dynamic British company Foxtons and our exclusive South African membership of the UK Guild of Professional Estate Agents. Our German International Division and its links with website and magazine Kapstadt.com make it easier for German-speaking buyers to investigate the property market here.
Global interaction also happens via our website of course – but having a strong physical presence in specific sites is essential. For example, we will be putting around 650 of our properties on show at the UK Guild of Estate Agents' offices in Park Lane, London, from 14 to 17 September.

Apart from the sunny skies and stunning shorelines, another reason that South African properties remain sought after – and will continue to do so – is the fact that, even with some quieting down of the market at some levels, capital growth in our property market is still likely to outperform those of the rest of the Western world in the next few years - particularly in view of the positive effect that World Cup and Olympic events historically have on tourism and resultant property prices in host countries.

Add to this the mounting pressure on property prices elsewhere in the world, and we may see more interest from abroad in investing here, rather than in their own countries.

With the world the 'global village' that it is today, it is vital to choose an agent with strong, creditable international linkages and branding. Otherwise, you may be doing yourself a disservice.
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