Property in South Africa increasingly attractive as rand weakens

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Estate agents are reporting an
increased interest in property in South Africa due to the weakness of the
country’s currency.  The rand has
declined sharply since May making property in the country more attractive to
overseas buyers.

Luxury homes in South Africa selling well

Property Abroad reports that ‘South Africa is seen as being a safe
haven in which to invest; its stable banking system and growing economy a world
away from the Eurozone crumbling under debt.’

Luxury homes in South Africa are
proving particularly popular with foreign buyers.  The website reports that sellers of luxury homes are often
prepared to be patient when selling, meaning that high value homes have tended
to retain their values, particularly as buyers tend to put down a large
deposit.

Johannesburg is currently one of
the most popular locations with buyers, partly because the cost of luxury homes
in the city is relatively low compared to similar properties in other major
global cities.

Both foreign and domestic demand for property in South Africa
increasing

In addition to overseas buyers
tempted by the weakness of the rand, domestic demand for luxury homes is also
on the increase.  Research from
Credit Suisse has estimated that the number of dollar millionaires in South
Africa will more than treble over the next five years, from 71,000 to almost
250,000.  This increase in wealth
will also drive the demand for high end homes.

However, while there remains high
demand for luxury homes from both overseas and domestic buyers, the low to
medium end of the property market in South Africa is picking up more
slowly.  A recent survey found that
there was a rise in demand for property in the country as well as an improved
level of confidence amongst estate agents, although the increases were slight.