Falling Rand likely to boost sales of top-end Cape properties

“Buyers with foreign currencies are perfectly poised to snap up luxury homes on the Cape Peninsula, and the coming summer season is likely to herald a new flurry of interest from beyond our shores,” says Mike Greeff, CEO of Greeff Properties. “With the local currency battling to strengthen against the US Dollar, Euro and Pound, our fellow affiliates in the Christie’s International Real Estate network have been reaching out with requests from buyers interested in luxury Cape-based homes. There is particular interest for homes bordering on vineyards and those with ocean views,” adds Greeff. “As this week sees the rand breaking through 12.89 to the US$, with R13/$ looking quite possible, and at R20.19/£ this week, real estate with a ZAR price is a bargain for foreign currency holders,” says Greeff. “A R10 million luxury property is now available for £478 469, or US$775 795 ­– this is value that is almost impossible to beat for the quality and beauty of South African real estate, and in particular that which the Western Cape has to offer,” says Greeff.

Beyond the Atlantic Seaboard

“While the sale of huge ticket homes along the Atlantic Seaboardtends to make the headlines, there is always a lot of interest along the False Bay and Southern Peninsula coastline as well, where prices are comparatively lower and space is more generous,” adds Greeff.  “Since Jan 2015, an average of 7.5% of property sales in False Bay have been to foreigners, according to Propstats,” he says. He reports that many of the foreigners buying in South Africa are those who tend to travel extensively and require a pied-à-terre for the summer months. “There is also interest from former South Africans currently living overseas and earning foreign currency who wish to keep a foothold in the country. Recent sales by Greeff in this category include: a five-bedroom, five-bathroom home with a cottage on an acre in Bishopscourt, which sold for R42 million to a South African living in Singapore, while a two-bedroom, one-bathroom holiday home with ocean views in Monkey Valley resort, was sold by Greeff’s Noordhoek agent for R4.625 million, to a buyer who lives in Switzerland, but was born in South Africa and has decided to invest in the country,” explains Greeff.

Foreign buyers take over in 2015

“In the Constantiaberg suburbs, according to Propstats, an average of 6.1% of all property sales have been to foreigners since the start of 2015, while in the City Bowl, an average of 7% of all property sales have been to foreigners for the same period. The Atlantic Seaboard comes in first, with an average of 16.6% of all property sales being attributed to foreign buyers since the start of 2015,” says Greeff. “Understandably, interest from foreign buyers was highest in the summer months with January, February and March seeing the highest number of sales to buyers other than locals,” he explains. “Of the foreign buyers who purchased properties in the aforementioned areas, 36% were from countries in Europe, 29% were from the United Kingdom, 15% were from other countries in Africa, 6.7% hailed from the United States, 5.04% from Singapore, a further 5% from Middle Eastern countries and 2.5% were from Australia,” reports Greeff.

Foreigners are expected to continue to invest in South African real estate, even more so as the Rand continues to weaken. For such buyers, it’s truly value for money and an opportunity to own prime property in beautiful South Africa is not one many would be willing to pass up.