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, 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.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us