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SA property now at least 35% cheaper for foreign buyers

All developing market currencies are under pressure at the moment, and the rand is no exception. However, its recent poor performance against both the pound and the dollar has underlined the exceptional purchasing opportunities currently available to foreign investors in the SA real estate market.

So says Berry Everitt, MD of the Chas Everitt International property group, who notes that for those buying property in strong currencies, home prices in SA have effectively been discounted by between 35% and 50% since 2011.

“At that time, according to www.XE.com, the dollar was worth around R8, compared to almost R14 currently*, while the pound was worth around R12,50, compared to around R21 currently.”

What this means in bricks-and-mortar terms, he says, is that a R10m luxury property in SA that would have cost a foreign investor US$1,25m five years ago will today only cost some US$723 000 – or around 42% less.

“For those buying in pounds, today’s price for the R10m property would be some GBP475 000 compared to around GBP800 000 five years ago – which equates to a saving of almost 41%.

“And even though the Euro has also taken quite a beating over the past five years, investors keen to buy in this currency now will need around 35% less than they did five years ago – that is, E646 000 to acquire the R10m property in SA now compared to E1m in 2011.”

In short, Everitt says, there has seldom been a better time for foreign purchasers to buy holiday homes or investment properties in SA.

“And through our membership of the Leading Real Estate Companies of the World® (LeadingRE) network and its luxury real estate programme, Luxury Portfolio International®, the Chas Everitt International property group is now able to market the best homes for sale in SA to a global audience of more than three-million high net worth individuals.”

*Conversions as per rand exchange rates on 30 September 2015.



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