News
Property investment in SA
Aided by the disparity between the South African Rand and major first world currencies, South Africa’s property market is an increasingly popular choice
President Thabo Mbeki has made it clear that foreign investment is welcome in the country with property investors who purchase renovation properties in South Africa's 16 major cities receiving welcome taxation breaks. Smaller investors also benefit from the increasing demand among European holiday makers for spring and summer rental properties.
Though appreciation figures in South Africa's property market were not as high in 2006 as previous years, some areas around the country have continued to outperform the national average. For example suburbs in both Johannesburg and Cape Town have seen strong yearly growth. According to Knowledge Factory's SAPTG statistics, Llandudno has seen a yearly growth of 38.06 per cent and Westcliff 51.58 per cent for the year 1 November 2005 to 31 October 2006.
The Associated Bank of South Africa's (Absa) latest House Price Index also noted that a nominal house price growth of 12,7% year-on-year in South Africa's property market was recorded in October 2006 compared to the revised growth rate of 13,5% in September.
Property prices in South Africa's property market are expected to continue to rise in 2007, Asba forecasting an increase in nominal house price growth of approximately six per cent.
Sue McDermott from Space Home Search and Relocation in South Africa said: "we have already seen evidence that in certain parts and certain price brackets, it is becoming a buyers market."
"Interest rates are slowly rising which is squeezing affordability on property. In addition, the market has been moving at such a fast pace that it was inevitable that things would slow down at some point, however this change is being challenged by the weakening rand which is making it cheaper for overseas buyers. We have been extremely busy as a result."
For further information:
Space SA
Properties in South Africa
Pictured: Property in Helderberg on 1.37ha. Price: ZAR7,500,000
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Jo-ann Hodgson 26 January 2007