Investors circling ‘weakened’ sa

As the rand continues to weaken, SA is expecting an influx of overseas property investors...

The recent 15% drop in the value of the rand against the US dollar and a 10% slide against the euro will re-ignite interest in upmarket Cape property among foreign buyers, says Mike Greeff, CEO of Greeff Properties.

In fact, he says, the signs of a revival in UK buyers’ demand for Cape property, is already there.  “With foreign buyers likely to comprise a maximum of 1,5% of the total of those buying Cape homes, their overall effect on the general market will,” says Greeff, “be minimal, but in “high end” properties the renewed foreign interest will keep prices buoyant.”

Greeff again repeated his earlier observation, that there is absolutely no need for the South African authorities to become xenophobic or paranoid about foreign buying. It should, he said, be welcomed because of its knock-on benefits to both the national and local economies.

Negative sentiment

In his experience many overseas people who purchased in SA bought purely for recreational or retirement purposes ended up investing here as well.

“It is the nature of such people to study the business scene and to capitalise on opportunities – and that is what happens, to the benefit of SA as a whole.”

Greeff noted that there is a “negative sentiment” in SA at the moment shrouding property. This was probably due to the high interest rates, the prospect of slower growth, increased crime, power cuts and political uncertainty.

However, in spite of these influences, he was positive that the current scenario still offered “numerous good buy opportunities, which will reward those who take the plunge now.”