More foreigners are buying South African property

The South African residential market has become a lot cheaper in recent years for foreigners whose incomes are denominated in some of the World’s major currencies.

Marina Martinique has benefited from foreign property buyers
Marina Martinique has benefited from foreign property buyers

This is due to a major depreciation in the Rand over the past few years, which has negated any house price growth which has taken place in Rand terms.

Not only is South African property a lot cheaper for foreign buyers than a few years ago, but property is more popular as an asset class globally compared to its status a few years ago.

This increase in popularity, coupled perhaps to the cheaper foreign currency denominated house prices, appears to have been driving a further uptick in the levels of foreigner buying in the local market.

From a low point of 2 % of total buying at a stage of 2010, the FNB Estate Agent Survey respondents have gradually raised their estimate of the foreigner buying to 5.5 % of total domestic home buying in 2014.

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Foreign buying of SA property by African Continent buyers appears to continue to strengthen, with African Continent buyers estimated at 24.5 % of total foreign buying in 2014. This is up from 12.5 % in 2013.

It would appear that the Cape Town region has experienced the strongest recovery in foreign buying levels, with agents in the 4th quarter survey estimating foreign buying to be 13 % of total buying in their areas.

The next best of the big cities is Joburg on 6 %, with similar percentages for the rest (6 % for Port Elizabeth, 5 % for Pretoria and 5 % for Ethekwini),

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