south africa attracting overseas buyers due to weak rand
News Posted On: 08 November 2011
South African property is becoming increasingly attractive to overseas buyers due to the weakened Rand, which has declined sharply since May. Many estate agents are now seeing an increase in the percentage of enquiries from international buyers.
South Africa is seen as being a safe haven in which to invest; its stable banking system and growing economy a world away from the Eurozone crumbling under debt.
Johannesburg is proving to be particularly popular, and the market for luxury homes is especially active. Sellers at the luxury end of the market are often able to wait for a sale, and this has meant that many luxury homes have retained their values, especially as buyers tend to put down large deposits. However sellers have also become more realistic about their asking price.
Although South African property is proving to be popular with overseas buyers, there are an increasing number of new South African millionaires. Credit Suisse has estimated the number of dollar millionaires in the country will increase by nearly 3 times over the next five years, from the current 71,000 to nearly 250,000.
The newly wealthy are likely to become more active as both buyers and sellers of luxury homes. Luxury property in South Africa is relatively cheap when compared to similar properties in other major cities around the world.
While the luxury property market in South Africa may be doing well, the rest of the property market is remaining largely static. A survey of the third quarter did show a slight increase in demand for residential property and improved confidence levels amongst estate agents, but this will need to be sustained for another few quarters before sentiment improves.
View South Africa property for sale
Written by Les Calvert
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