Foreign buyers favour Cape

CAPE property is still favoured by British and European buyers.

Foreign buying on Cape Town’s Atlantic Seaboard and in the City bowl remains steady at about 3 to 4% of total sales, says Seeff Atlantic Seaboard managing director, Ian Slot.

Over the past year, about 86 properties to the value of close to R550-million have been sold to foreign buyers, with British and European buyers representing 67.39% (62 properties) of total foreign sales.

Despite the economic challenges faced in the UK and Europe, it seems that they still find value in properties here.

The largest percentage are UK buyers, at 23.91% (22 properties), followed by German buyers at 10.87% (10 properties). Buyers from the Netherlands, France and Norway represent 3.26% each (three properties each). Americans only bought three properties, about 3.26% of total sales.

Buyers from elsewhere in Africa are growing steadily and now represent 18.48% of all foreign sales. The largest portion though is still Namibian buyers at 7.61% (seven property sales) of all sales, followed by Tanzanian buyers at 3.26% (three property sales). Other African buyers include Kenya, Congo, Nigeria and Senegal.

While South Africa’s membership of BRICS (Brazil, Russia, India, China and South Africa) will hopefully bring about increased interest in property here, Slot says only one property sold to a Brazilian buyer over the past year. There were also sales to Japanese (two) and Unit Arab Emirates (two) buyers.

About 70% of all foreign sales were in the coastal suburbs of the Atlantic seaboard, he says. In Sea Point and Green Point, some 27 properties were sold, mostly apartments at an average price of R2.4-million and R2.6-million respectively. Camps Bay has been a particular favourite with foreign buyers with 14 sales at an average price of just more than R8.8-million. In Clifton, three apartments were bought at an average price of R7.6-million by buyers from the UK, Sweden and the USA. In Bantry Bay, five properties sold at an average price of R14.1-million, including one sale to a Japanese buyer. All of these were cash transactions. Fresnaye achieved the highest average sales price with four sales at an average price of close to R18-million.

At the V&A Waterfront four properties sold to foreign buyers.

The CBD and city bowl suburbs remain popular with European buyers, says Slot. A total of 27 properties (29% of total sales) sold to foreign buyers over the past year including six sales in Tamboerskloof, the most recent being a house in St Michaels Road that sold for R6-million to a Swedish buyer.

Foreign buying usually peaks in tourism season, between November and April when about 90% of all sales take place.

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