Cape sales to foreigners hit high point.

News > news - 28 May 2007
The purchasing of Cape residential property by foreigners hit a high point over the 2006/2007 December/January period, according to figures assimilated by Rawson Properties working off the Regional Property Price Ranger and other statistic.

The figures also show that houses bought by the foreign contingent were priced at almost double those of the average Cape home.

Commenting on the figures, Tony Clarke, MD of Rawson Properties, said that in December 2006 and January 2007 foreign buyers had spent 16,3% on the total residential sales turnover for that period. This was seven percent higher than for the same period last year.

“The average price of houses bought by foreigners was R2,7 million. By contrast, the average price of Cape homes sold in the same period was R1,6 million.”

This high level of sales, said Clarke, had not been witnessed since the boom in foreign sales experienced in 2002 prior to the government’s moratorium that temporarily interrupted the market for sales to foreigners.

Clarke noted that unit sales this year are down by some 12% on last year and that the foreign buying upswing dwindled markedly in February and March.

Increased tourism to the Western Cape, said Clarke, probably had much to do with the upswing. Figures released by Cape Town Routes Unlimited showed that the number of foreign visitors rose by almost eight percent this year, making the Western Cape the most popular South African tourist destination. The four most visited venues were the V & A Waterfront (with 22 million visitors in one year), Cape Point, Kirstenbosch and Robben Island.

“The sales and tourism figures are encouraging,” said Clarke, “and it seems likely now that with 2010 just around the corner next summer’s property buying by foreigners will hit an all time high - in our group we are preparing for this in various ways - and are excited by the prospects ahead of us.”
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