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Johannesburg - Almost one in five foreign buyers of residential property in SA are estimated to be from elsewhere in Africa, according to estate agents surveyed by FNB.
The agents surveyed estimated that the percentage of foreign home buyers believed to be from elsewhere on the African continent for the two quarters up until the first quarter of 2014 was 19.5%, up from 16% in previous quarter.
Of these buyers a higher percentage buying around Gauteng as compared to the coastal cities.
"This arguably makes sense, given Gauteng’s status as Southern
Africa’s business and economic 'hub, thus having strong business
ties and transport links with the rest of the continent," said John Loos, FNB's household and property strategist.
Foreign buyers in general
Foreigners, in general, are becoming more interested in SA property again, according to the latest FNB Estate Agent Survey.
The survey hints at improving levels of foreigner buying of South African residential property, according to Loos.
"Certainly, for these people, a very weak rand has made our property far cheaper on average for foreign buyers in recent years," said Loos.
"But one shouldn’t necessarily jump to the conclusion that it is the weak rand that is fully responsible for greater levels of foreigner buying."
He said it is likely rather the global economic recovery, which strengthens foreigner purchasing power and has restored confidence in property globally, playing the biggest role.
"Just as we observe some exporters and policy-makers living in hope that rand weakness will boost SA exports meaningfully and are often disappointed, we believe that rand weakness does very little on its own to support local property buying by foreigners," said Loos.
"Rather, it is a strong global economy and high levels of popularity of property as an asset class that are likely to support this source of local property buying."
In the high volume market of 2005, estimated foreigner buying was as
high as 7% of total local home buying.
It mattered not that the rand was going through a very strong period by modern day standards, said Loos.
"Property was the darling asset class in a booming world, and little was going to stop it."
"So, should the global economic and property recovery continue, we could expect a gradual increase in foreign interest in domestic residential property in the near term."
The agents surveyed estimated that the percentage of foreign home buyers believed to be from elsewhere on the African continent for the two quarters up until the first quarter of 2014 was 19.5%, up from 16% in previous quarter.
Of these buyers a higher percentage buying around Gauteng as compared to the coastal cities.
"This arguably makes sense, given Gauteng’s status as Southern
Africa’s business and economic 'hub, thus having strong business
ties and transport links with the rest of the continent," said John Loos, FNB's household and property strategist.
Foreign buyers in general
Foreigners, in general, are becoming more interested in SA property again, according to the latest FNB Estate Agent Survey.
The survey hints at improving levels of foreigner buying of South African residential property, according to Loos.
"Certainly, for these people, a very weak rand has made our property far cheaper on average for foreign buyers in recent years," said Loos.
"But one shouldn’t necessarily jump to the conclusion that it is the weak rand that is fully responsible for greater levels of foreigner buying."
He said it is likely rather the global economic recovery, which strengthens foreigner purchasing power and has restored confidence in property globally, playing the biggest role.
"Just as we observe some exporters and policy-makers living in hope that rand weakness will boost SA exports meaningfully and are often disappointed, we believe that rand weakness does very little on its own to support local property buying by foreigners," said Loos.
"Rather, it is a strong global economy and high levels of popularity of property as an asset class that are likely to support this source of local property buying."
In the high volume market of 2005, estimated foreigner buying was as
high as 7% of total local home buying.
It mattered not that the rand was going through a very strong period by modern day standards, said Loos.
"Property was the darling asset class in a booming world, and little was going to stop it."
"So, should the global economic and property recovery continue, we could expect a gradual increase in foreign interest in domestic residential property in the near term."
