Loading...
See More

Emigration property sales dive

Aug 15 2011 12:53 Sapa

Related Articles

Residential payments conduct worsens

Allegations sensationalist: EAAB chief

EAAB stands behind its chairperson

Hawks investigate estate board chief

Property development under pressure

Katota property project a fraud

 
Johannesburg - The number of people selling their property with a view to emigrating is the lowest since 2008, according to the second-quarter First National Bank Estate Agent Survey released on Monday.

“From a peak of 20% (of total residential selling) in the third quarter of 2008, the percentage of residential sellers believed to be emigrating has declined to 4% for both the first and second quarters of 2011,” said FNB home loans strategist John Loos.

FNB has since the first quarter of 2008 been asking agents for estimates on why people were selling their homes. Loos said it was not clear why the rate had dropped.

“But... flows of investments and people between countries have to do with ’relative sentiment or environment changes’ between countries,” Loos said.

There had been a significant drop in confidence levels in many European countries, including the United Kingdom, and the United States due to their declining economic fortunes.

“Sentiment aside, high unemployment rates in many developed countries probably mean that they aren’t nearly as welcoming to immigrants from the likes of South Africa compared to a few years ago in the global boom years, and even where they are welcoming of immigrants the job prospects just aren’t as promising as a few years ago.”

Loos said agents’ estimates indicated that the percentage of expatriates buying property in South Africa has been relatively stable at around 2% to 3% of total buying since mid-2009.

“This is not perfect, as expats buying property in South Africa don’t always do so with a view to returning permanently.

“Nevertheless, we assume that this is a partial indicator of skills returning or intending to return,” he said.

The gap between emigration sellers at 4% of selling and expatriate buyers at 2% of total buying appeared to have narrowed, suggesting that the net skilled labour outflow may have subsided in 2011, Loos said.

fnb  |  property market
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
9 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...