select
|

Foreign and expat buying fever spills into Cape Town’s southern suburbs

The foreign and expat buying fever has spilled into Cape Town's southern suburbs, says Seeff's managing director for the area, Andy Todd. After an almost 5-year period during which buying by foreign nationals and South African expats were sporadic rather than a trend, about 20-30% of our buyers over the last few months fall into this buying category. Additionally, we have also seen an influx of upcountry buyers, mostly with the view to relocating to the city, he adds.


4 Bedroom House for sale in Bishopscourt

While the depreciation of the rand has obviously made property here more attractive for buyers, Todd says that the upward trend should also be seen in the light of the improvement in the economies of the UK and Europe. Likewise, the growing trade on the African continent is adding to the increase in African buyers.

Bishopscourt agent, Ingrid McFarlane says that four of her seven recent sales were to foreign buyers. Aside from two homes that sold for R13,2 million and R16,5 million respectively, a four-bedroomed home in Kirstenbosch Drive sold for R24 million and a four-bedroomed home in Salisbury Avenue sold for R25 million; both to UK buyers.

Constantia Upper agents, Shelley Kruger, Janine Stevenson and Marie Durr say that three of their recent buyers were UK nationals planning to relocate to the city. Sales include a double-storey home in Peter Cloete Avenue that sold for R9,4 million, a home in Jacaranda Way that sold for R4,5 million and a property in Loquat Walk that sold for R5,8 million. A further five are buyers from upcountry looking to relocate to the city. The majority of our buyers though are still locals, but we have certainly seen an influx of upcountry buyers, mostly from the Johannesburg area.

Agent, Barbara Stephenson who operates in the Constantia hills and rural area says here too, she has seen an increase in interest from foreign buyers including two recent Kenyan nationals looking to invest in property. A noteworthy recent sale concluded by the agent is a four-bedroomed home located in Uitsig Close, a security complex that sold for R7,12 million to a buyer from London. Aside from the sale of a property for R4,1 million to a French national, agent, Nikki Edenborough also concluded the sale of a home for R4,35 million to a Cypriot who plans to relocate to the country in May next year. Two expat buyers also invested R3,5 million and R4,1 million respectively in homes that they will rent out until they return from the UK in 2015.


4 Bedroom House for sale in Durbanville

New estates in the Constantia area are also attracting interest amongst foreign buyers, says Mandy Kuhn who recently concluded the sale of a three-bedroomed townhouse in the Nieuwe Steenberg development to a German buyer for R7 million.

The Newlands area too has seen good interest from foreign buyers according to agents Barbara van der Westhuyzen and Vanessa Clerke. About half of our recent sales were to foreign nationals, mostly from the UK. Sales include six homes that sold for upwards of R2,2 million in Avenue Road to R4,2 million in Upper Wheelan Street and three sales at between R5,45 million and R5,9 million. A lovely lock-up-and-go home close to the world renowned Kirstenbosch Botanical gardens also sold to a Swiss buyer for R5,5 million.

The apartment and sectional title sector of the market is also seeing interest from foreign, expat and relocation buyers, says agent, Sean Guy. Both the affordability and cosmopolitan street-café culture have made the areas around Claremont, Kenilworth and Newlands highly sought-after. 

Recent sales to foreign buyers here include a two-bedroomed apartment at The Intaba in Upper Claremont that sold to a Chinese buyer for R2,82 million and a three-bedroomed duplex at Sevenoaks in Newlands that sold to a Zimbabwean buyer for R2,65 million.

Todd says this comes amidst a generic uptick in activity across the various neighbourhoods of the southern suburbs with buying activity up almost across the board; from entry level apartments to upper income homes and estates in the R10 million plus sector of the market. While buyers are spending anything upwards of R2 million to R25 million on homes, the foreign and expat interest is not driving prices up. Across the board, buyers are smart about what they are looking for and how much they are prepared to pay and it is rather due to the overall uptick in demand and stock shortage that sellers are seeing better offers.

The general upward trend in activity has seen most of the stock clear out of the market and stock shortages almost across the board. This is now an opportune time for sellers to put their properties up for sale as they are likely to get good offers, but we would urge them to act sooner rather than later if they hope to take advantage of the favourable selling conditions, concludes Todd.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 24 Jan 2017
      Today’s (24 January 2017) announcement by the Monetary Policy Committee meeting that the repo rate remains unchanged is surely what is needed to help fuel increased activity in the residential property market, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 24 Jan 2017
      The iconic Church Square in the heart of Pretoria will undergo an upgrade which will see more trees, lawns and, benches in the modern landscaped square to just name a few. This is all part of the rejuvenation of the CBD.
    • 24 Jan 2017
      Despite an overall modest slowdown in house price growth in South Africa’s residential property market, with house price inflation averaging at 4.88 percent in 2016, which is only marginally below the 2015 national average of 5.34 percent, the three coastal metropolitan markets of Cape Town, Nelson Mandela Bay and Durban continue to outperform the interior metro markets.
    • 24 Jan 2017
      Often car loans and credit cards accrue interest at a much higher rate than a home loan, which is why many people decide to take equity out of their home loan to pay off their other debts. Focusing on paying off debt with the highest interest rate is a very good financial strategy to implement, but is using a home loan to do it the best idea?
    • 23 Jan 2017
      From the historic Cape wine lands to the balmy beaches of KwaZulu Natal, South Africa has some of the most beautiful historic homes just waiting to be discovered
    • 23 Jan 2017
      Need a break from the hustle and bustle of city life? Then this remote island off the Australian coast might just be what you have been looking for.
    • 23 Jan 2017
      The online short term letting platform, Airbnb allows property owners to list their apartments and homes to attract travellers and charge daily accommodation rates. In June 2016, there were about 7 500 Airbnb hosts in South Africa, making this a fast growing industry of its own.
    • 21 Jan 2017
      Most of today’s grandparents are members of the Baby Boomer generation, which is renowned for doing just about everything in life really differently from their parents and all previous generations.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK