CEO's Message May 2016
Category CEO's Message
Although the last few months have seen significant fluctuations in the foreign currency exchange rates, it certainly hasn’t been all doom and gloom for the property market. The rand’s stark devaluation against the world’s major currencies has proved to be a double-edged sword with international buyers willing to risk investing in an unstable currency in order to acquire prime properties, relatively cheaply, in some of the South Africa’s most sought-after regions – one of these being Atlantic Seaboard.
Our Tyson Properties Atlantic Seaboard branch manager Nick Pearson has confirmed that the agency has experienced a significant upturn in the number of holiday makers viewing the weaker rand as an opportunity to purchase their dream house.
These buyers, traditionally from the UK and Germany and now increasingly from the Scandinavian countries, the Middle East and across Africa, are driven by the amazing lifestyle South Africa has to offer combine with the value-for-money proposition.
Research has shown that the European investors typically acquired holiday homes, while those from the Middle East and Africa wanted secure African property investments. The most popular suburbs include Tamboerskloof in the City Bowl and Camps Bay, Clifton, Llandudno and Bantry Bay on the Atlantic Seaboard.
Furthermore, people are buying in South Africa for an array of different reasons – from holiday homes to second homes, properties in which to retire full-time and ones where they can spend the northern hemisphere winters in the sun. However, international buyers are also acquiring large properties and entire apartment blocks for redevelopment and resale.
The good news for local residents and other holiday makers is that these buyers are also renting out their properties, effectively meaning Cape Town is experiencing a boom in the short-term letting industry.
Cape Town has a long history of attracting international buyers as its esteem as a prime global holiday destination has gained traction. In 2014 British newspaper The Guardian and the US’s New York Times named the city as the top holiday destination.
Traditionally international buyers have purchased with cash, injecting direct foreign investment, tax and jobs to the country and local economy. Yet another reason to remain positive about the opportunities that lie ahead the property market.
Kind regards
Chris
Author: Tyson Properties
