Real Estate & Investment News in South Africa from Propertyshowrooms.com

South Africa's coastal properties 'are popular'

Mon, 5 Mar 2012 00:00:00 GMT

Coastal properties in South Africa are holding their value well and proving to be popular among buyers.

This is the assertion of Spacesa director Darren McDermott, who explained the market in the Western Cape of the country has not experienced significant price falls over the past few years.

"It's [in] coastal property that you see real value, compared to similar property on the Mediterranean - and everyone wants to live with sea views," he stated.

Mr McDermott highlighted the Atlantic Seaboard in Cape Town and the city's suburb of Constantia as being two of the most sought-after locations among real estate investors at present.

He added the rand's strength against sterling is impacting buyers from overseas, noting many are borrowing in South Africa to hedge against movements on the money markets.

Last month, Currency Index offered some advice to those purchasing property abroad. The firm suggested fixing the exchange rate in advance to avoid any nasty surprises, as well as shopping around to find the most competitive rates available.

Hout Bay 'a hotspot for property investment in South Africa'

Tue, 13 Dec 2011 00:00:00 GMT

Many property investors are interested in owning an apartment or house in Hout Bay, just outside Cape Town, it has been revealed.

Co-founder of Spacesa Sue McDermott explained that the beach-front area is particularly popular due to the wide range of different homes for sale here.

She noted that it offers "a lot more value" due to its location near Camps Bay, which is not as favoured by investors due to the higher house prices and windy conditions it often experiences.

"If people just want to dip their toe in the water with an apartment and spend less money, there is a place called Sea Point which is a bit nearer the town," Ms McDermott added.

Last month, managing director of Rawson Properties Tony Clarke commented in an article for SA Commercial Prop News that the South African real estate market has not been hit as hard by the global economic downturn as other nations.

He highlighted rising house prices across the country as a positive sign for the future of the sector.

"Good value" property available in South Africa

Wed, 7 Dec 2011 00:00:00 GMT

It is still possible for investors to find South African property that represents "good value", it has been claimed.

Co-founder of property search and relocation firm Spacesa Sue McDermott explained that homes overlooking the sea can be purchased in the nation "for a fraction of the price that you would pay in most European countries".

She noted that it can cost as little as £100,000 to buy an apartment on the coast.

Ms McDermott also highlighted the group of real estate owners known as swallows, "who come and spend the British winter in South Africa - so they have summer all year round".

This lifestyle choice is one of the main attractions of buying a property in the country and spending time there, she added.

According to the latest house price data published by Knight Frank, South Africa saw its residential real estate values climb by 1.1 per cent during the third quarter of 2011, compared to the previous three-month period.

The firm also highlighted that, since the third quarter of 2010, property prices in the country have risen by 5.5 per cent.

'A buyers' market' for South African property

Wed, 21 Sep 2011 00:00:00 GMT

Now is a good time to invest in property in South Africa, particularly along the Garden Route, it has been claimed.

Speaking to SAcommercialpropNews.co.za, Rael Levitt from Auction Alliance explained that resorts have experienced the biggest price drops in recent months, while regions just outside large cities have also seen property values decline.

He highlighted the Garden Route as one of the areas that has seen prices plummet, due to the high level of development over the past five to seven years.

Consequently, there is more supply than demand for homes in this part of the country, Mr Levitt stated.

"A burgeoning trend within the sector is that it is a real buyers' market right now," he commented, adding that it offers a "historic opportunity to get into the market at significantly reduced prices".

South African mortgage provided ABSA noted in its most recent Housing Review that property prices in the nation declined in real terms during the second quarter, compared to the same three-month period in 2010.

South Africa's Umhlanga Rocks may attract investors

Mon, 22 Aug 2011 00:00:00 GMT

Investors intending to plough some money into South African real estate may want to consider the Umhlanga Rocks area after one local expert pointed out the advantages of owning property in this region.

Speaking to SAcommercialpropNews, Pam Golding Properties area principal Elwyn Schenk explained that a lack of supply in the market has helped prices to rise.

He said that housing on the Umhlanga beachfront "continues to be highly sought after, with little new stock available".

Mr Schenk told the publication that there are some new projects planned for the district, but that these have timelines of between three and five years.

However, he stressed that these developments are likely to benefit the area's real estate sector, commenting: "Existing stock should, even with modest growth, start to see a strong uplift in prices."

Umhlanga may also appeal to investors due to its proximity to Durban and the good transport links that it enjoys.

A casino, shopping centre, numerous golf courses and Isimangaliso Wetland Park - a UNESCO World Heritage site - are just some of the attractions that the coastal region boasts.

Overseas investors 'less active' in South Africa

Fri, 18 Feb 2011 00:00:00 GMT

The number of foreign investors active in the South African property market has fallen compared to last year, according to the fourth-quarter 2010 FNB Estate Agent Survey.

It follows the release of the January 2011 FNB House Price Index report which revealed that there has been an average decline in home values of 1.3 per cent over the course of the month.

Overseas investors made up just 3.5 per cent of the overall Cape Town real estate market during the final quarter of 2010 and 4.75 per cent of the market over the year as a whole.

This is significantly down on the estimated 10.75 per cent average share of buyers for 2008 and 7.75 per cent in 2009.

"The absolute amount of foreign buyers may not have declined as much as the percentages suggest, because the market was thinner in 2008 than in 2010," the survey said.

"But that magnitude of decline in percentage would suggest some sort of absolute decline in foreign buying in our region."

Celebrities targeting South African property investment

Tue, 29 Jun 2010 00:00:00 GMT

The fact that South Africa is currently hosting the football World Cup has led to many celebrities visiting the country and some showing interest in making a property investment.

According to the Times Live, some estate agents in the country have been visited by famous names in order to take a look at what properties are for sale in South Africa.

Area manager Ling Dobson highlighted that coastal properties were proving particularly popular, with guests from the UK, US, France and Italy among those seeking luxury accommodation.

She told the news provider: "Even just prior to the World Cup we sold a property in Knysna to a French buyer."

Ms Dobson added that an appointment has also been scheduled with a wealthy Italian and his family in relation to viewing a number of properties in the country's Eastern Cape.

The most recent real estate performance index by IPD/Sapoa revealed that investors in the South African property market could expect an average total return of 8.7 per cent.

South Africa posts good investment returns

Tue, 27 Apr 2010 00:00:00 GMT

Individuals with a property interest in the South African market will be pleased by news that despite the economic crisis real estate in the country offered greater returns than in the US or UK last year.

The most recent real estate performance index by IPD/Sapoa demonstrated that potential investors were able to benefit from an average total return of 8.7 per cent from South African property.

This can be compared to 3.5 per cent from the UK and a loss of 17.5 per cent in the US.

According to Mohamed Kalla, a property analyst at Barnard Jacobs Mellet, the resilience of the country's property market can be put down to the strength of its banks.

"South Africa's credit markets were more sheltered by the global banking crisis when compared with other countries," he told Property Abroad.

"This, coupled with more prudent gearing levels, meant that property funds were not forced to sell assets at rock-bottom prices to avoid loan-to-value breaches."

Investors looking to rent out property in the country could benefit from the forthcoming football World Cup, which is being held there from June 11th until July 11th.

Eyes of world on South Africa

Sat, 5 Dec 2009 00:00:00 GMT

World attention will be focused on South Africa as the draw for the 2010 World Cup takes place this evening.

The schedule for the 32-nation tournament will be decided today (December 4th) in Cape Town, something that could increase the level of attention received by the city, which is based around the coastline and low-lying areas below Table Mountain.

Such a situation might particularly entice property buyers who had not previously thought of investing in South African real estate.

Cape Town itself will be one of the host cities for the event and may be a good location for tourist rental - both during the tournament and afterwards - due to the attention it will receive from South Africa's time in the spotlight.

The Daily Telegraph guide to the venues noted tourist attractions include surfing at Llandudno Beach, a cable car up Table Mountain, many museums and colonial buildings, plus a chance to catch a boat to Robben Island, where Nelson Mandela was imprisoned.

South Africa 'makes good golf destination'

Wed, 11 Nov 2009 00:00:00 GMT

Those keen on buying golf property overseas may find South Africa to be one of the best places to go, it has been suggested.

A Daily Mail feature on this kind of real estate noted that the southern hemisphere nation is a popular winter sun destination for Britons.

It said the qualities of the country as a golfing venue include having 138 courses of international standard, with one of the best being the Durban Country Club in sub-tropical Kwazulu-Natal, which frequently hosts the South African Open.

Pezula in the southern Cape was noted as a favourite with Britons, due to having many homes near the greens and a nature reserve close by.

South Africa's property market is bouncing back after the recession, real estate magazine Property Abroad claimed recently.

It said transactions in September and October were 40 per cent higher than in the previous two months, a jump attributed to the reappearance of 100 per cent mortgages.

South Africa 'set for major investment'

Fri, 16 Oct 2009 00:00:00 GMT

South Africa is set for major infrastructure investment from its government, it has been reported.

The Daily Telegraph noted that a USD90 billion (GBP55 million) state programme will include investment in areas such as power, health and homes, with British firms likely to be heavily involved in the sustainable housing and renewable energy sectors.

Such a development may also help those looking to buy property in South Africa, as a boost to the economy resulting from such work may feed into the real estate sector.

Like most countries, South Africa has seen its property prices drop during the world economic downturn, but in an article written for South African property site Real Estate Web, chief executive of Durr Estates Julian Reynolds said this will soon change.

Mr Reynolds tipped Cape Town to see the largest price rises in the near future as a "rebound" from seeing the greatest falls in value of any metropolitan area in the country.

South Africa property prices increasing, study shows

Sat, 11 Jul 2009 00:00:00 GMT

Year-on-year prices in South Africa have shown a nominal increase of 1.2 per cent, according to research.

Ooba, a mortgage information provider, found that the average price of a property in the country rose from ZAR774,449 (£58,228) to ZAR784,427 between June 2008 and June 2009.

A hike in the month-on-month purchase prices was also evident, with a nominal increase of 1.4 per cent from R773,440 in May.

Chief executive of the company Saul Geffen said the change in cost does not necessarily mean the downturn is over as other factors have to be considered.

He remarked: "This may be attributed to a shift to higher priced properties in June, given affluent homebuyers' ability to better adapt to strict bank lending practices."

Earlier this week, Johannesburg was revealed as the most cost-effective place to live for expatriates when it replaced Asuncion in Paraguay at the bottom of the Mercer 2009 Cost of Living list.

South Africa abolishes stamp duty

Fri, 3 Apr 2009 00:00:00 GMT

The South African government has completed the process of abolishing stamp duty.

From midnight on March 31st there was no stamp duty levied in the country, with several recent acts of legislation reducing the scope of the tax.

The South African Revenue Service revealed that the final provision for the duty - to be levied on leases of over five years duration - has now been terminated.

Only those already owing tax from before March 31st now have anything to pay.

Such a situation may encourage investors in South African property.

Those keen on investing in the country may also be encouraged by the attention that will be focused on it next year when it hosts the football World Cup.

Cities hosting games may attract particular focus, with these including major metropolitan centres such as Cape Town, Durban and Johannesburg.

Matches will also be played in less prominent cities such as Polokwane and Rustenberg.

PE 2010 stadium nears completion

Tue, 17 Mar 2009 00:00:00 GMT

The construction of the Nelson Mandela Bay Multipurpose Stadium reached a significant milestone this week as the last of the 36 roof truss girders was fitted into place in a commemorative event broadcast live on SABC 2's Morning Live.

Members of the Nelson Mandela Bay city council took on local team Bay United on Wednesday in an exhibition kick-about match to commemorate the placement of the last girder - laying claim to being the first players to play on a 2010 FIFA World Cup stadium pitch.

The R1.3 billion stadium situated along the North End lake of Port Elizabeth is now just a few weeks away from completion, with the stadium's 46 000 seats installed and the pitch already laid. The official handover date for the stadium is scheduled for the end of April.

South Africa prices 'reduced by buyer fall'

Tue, 10 Mar 2009 00:00:00 GMT

House prices in South Africa are being reduced by the falling number of buyers, it has been stated.

Speaking to the Times, Laurie Wener of Cape Town firm Pam Golding Properties said: "Our volumes have dropped by 40 per cent to 50 per cent," adding: "Sellers set the price and buyers set the value."

As a result, the paper notes, prices have been falling as demand has dropped, creating a situation where many properties have been discounted.

These have included top-end properties being trimmed from around £2 million to £1.3 million, while those buying in fashionable Atlantic seaboard suburbs such as Bantry, Clifton Bay and Camps Bay can acquire three-bedroom homes from £500,000.

South African property may benefit from the attention being focused on the country by the 2010 football World Cup.

Cape Town's venue will be the Green Point Stadium, which is close to the city centre, the Waterfront and Signal Hill.

South Africa property market 'struggling to recover'

Wed, 25 Feb 2009 00:00:00 GMT

South Africa's property market is struggling to recover from the economic downturn, despite not being hit as badly as some other international real estate sectors, a new report has revealed.

According to Colliers International, issues such as power outages, the lack of liquidity and weak household demand are limiting the growth of the property market in the country.

However, the real estate services firm noted that exposure to foreign investment has been limited, meaning the fundamentals of the market are still "strong" and that the sector will improve in 2010.

"Colliers believes that 2009 will be a very interesting year," the firm said in its report.

"Capitalisation rates should continue to soften as sellers start to realise the true market value of their properties," the company added.

Earlier this year the Association of Independent Tour Operators concluded that South Africa is one of the most popular destinations for long-haul holidaymakers, something that may be welcomed by investors considering purchasing property in the country.

More Cash for South Africa 2010 Stadiums

Mon, 16 Feb 2009 00:00:00 GMT

Finance Minister Trevor Manuel said on Wednesday that the 2010 soccer World Cup will be one of the sources of output growth improvement next year.

Presenting his Budget in Parliament, Manuel said he expects output growth to improve then, supported by public infrastructure spending, lower interest rates and a recovery in the world economy as well as the World Cup.

At a press conference in Parliament the minister said the World Cup was not just about bringing the world's best soccer players to this country or about building soccer stadiums, but was also a means of improving the country's infrastructure, and the Budget Review points out that the World Cup project covers a range of activities from stadium construction to transport, tourism and marketing, health and disaster management, safety and security and telecommunications.

"Stadium construction is progressing rapidly, with some projects ahead of schedule," the Review reads.

To provide for increased construction costs and improved project management, a further R463m is allocated to the stadiums construction grant. "By the end of the process the government will have contributed R11,5bn to stadium construction," the Review said.

Allocations of R505m in 2009/10 and R210m in 2010/11 will support host city preparations for the Confederations Cup this year, and the main event next year.

The public transport infrastructure and systems grant receives an allocation of R11,9bn over the next three years to establish, construct and improve new and existing public transport infrastructure and systems in large municipalities including the 2010 host cities.

The Review notes: "The cities of Cape Town and Johannesburg are moving ahead with plans for bus rapid transit systems intended to facilitate greater use of public transport and alleviate road congestion."

Click here to view Property in South Africa

Western Cape property 'increasing in price'

Wed, 28 Jan 2009 00:00:00 GMT

Average prices of property in the Western Cape region of South Africa have increased, despite a fall in turnover and completed transactions, new figures have revealed.

Statistics from Sotheby's International Realty South Africa showed a 19 per cent increase in the average price of a home in the region, up from ZAR1.67 million (GBP118,532) to ZAR1.99 million.

This is despite a 35 per cent drop in turnover for the Western Cape market during the first half of last year and a 45 per cent reduction in the number of properties sold.

Barak Geffen, executive director of the firm, noted that there are still many buyers operating in the market, despite the "negative sentiment" about the sector in the country's media.

"Astute buyers have been waiting for a market correction to pick up top-end properties from realistic sellers at market-related prices," he explained.

Last month, figures produced by the Investment Property Databank showed that the first six months of 2008 brought a 7.3 per cent increase in the amount of South African property across all sectors.

High end property selling in the Western Cape as astute buyers look for bargains

Tue, 27 Jan 2009 00:00:00 GMT

Property in sought after areas in the Western Cape, South Africa, is selling despite the economic downturn, according to the latest figures to be published...

'Investors not pulling out of Cape Town'

Mon, 26 Jan 2009 00:00:00 GMT

Despite the global economic downturn, there is "no sense of a crisis" in Cape Town where investors are still putting millions of rand into inner-city developments, Cape Town Partnership says...

Property market in South Africa bottoming out

Tue, 2 Dec 2008 00:00:00 GMT

Property sales in South Africa have ground to a halt but experts are predicitng that when they start to recover they could rise more than 50% in three years...

South Africa Property Trends Revealed

Tue, 25 Nov 2008 00:00:00 GMT

The Trafalgar City report 2008, reveals that analysis done on private and public sector property sales over the past two years has unearthed interesting trends throughout South Africa.

It showed that highly sought-after residential areas have experienced dramatic property price hikes despite escalating interest rates.

According to the report several suburbs have shown sales growth in three-bedroom houses and a corresponding drop in smaller home purchases.

The report highlighted that the worldview is slowly shifting towards sustainability and the concept of green building - the practice of increasing the efficient use of resources during construction, and reducing the impact construction has on human health and the environment.

South Africa has been criticised for lagging on these matters, which the report reflects is an issue the newly established Green Building Council of South Africa aims to tackle.

The government is also re-fitting more than 106,000 buildings and public offices in line with a policy of 'leading by example'.

News item compiled by Susandeacon.co.za

Cape Town station to get piece of 2010 pie

Mon, 24 Nov 2008 00:00:00 GMT

Cape Town station is a 2010 priority project, but its new design will also be enjoyed long after the World Cup has come and gone, Intersite's Pierre Cronje says...

Financial boost for SA business tourism

Thu, 20 Nov 2008 00:00:00 GMT

Major players in the tourism industry signed a R64-million deal aimed at boosting business tourism in the country...

Tourist hub planned for Boland

Mon, 10 Nov 2008 00:00:00 GMT

Wide-ranging development plans have been mooted for the new R1,5-billion Berg River Dam...

The city of endless opportunities

Wed, 10 Sep 2008 00:00:00 GMT

Johannesburg has always been able to lure people from all over the continent with the promise of a better life...

Gauteng 'ready' for 2010

Thu, 7 Aug 2008 00:00:00 GMT

Gauteng is ahead of schedule to host next year's Confederations Cup and the 2010 World Cup finals, the Gauteng provincial government has said...

South Africans snap up foreign property-070808

Thu, 7 Aug 2008 00:00:00 GMT

An estate agent in South Africa has revealed that a growing number of people in the country are buying property abroad.

According to Pam Golding Properties, more and more affluent South Africans are looking at foreign markets such as France, reports Cape Argus.

This was said to be partly because of problems in the domestic housing market, as well as the relative weakness of its currency.

Simon Gibb, spokesperson for the group, commented: "There is a trend that when our rand is trading less favourably against the major currencies, South Africans look to move money offshore."

He stated that rural property in France is proving to be particularly popular, with many buying homes for both investment and lifestyle purposes.

This comes after Shelter Offshore praised the European country for offering lower living costs, which it said could make it a good destination for British expatriates.

Visit our off-plan property France page

Australian property 'popular with South African investors'

Thu, 7 Aug 2008 00:00:00 GMT

A growing number of overseas property investors in South Africa are showing interest in the Australian market, according to experts.

Estate agency Pam Golding Properties stated that the country is proving to be a popular choice with prospective purchasers of real estate in South Africa, reports Cape Argus.

Simon Gibb, spokesperson for the company, said much of the interest is coming from people who plan to buy for investment purposes.

However, he stated that some enquiries are also coming from people who wish to live in Australia on a permanent basis.

Mr Gibb believes the decline in the South African currency, as well as growing political uncertainty, has fuelled the recent interest in buying abroad.

He commented: "There is a trend that when our rand is trading less favourably against the major currencies, South Africans look to move money offshore.".

Earlier this week, Paul Arthur of The Emigration Group told the Daily Star that Australia has attracted 23,906 expats from the UK in the last year.

Gordon's Bay project targets tourism

Mon, 4 Aug 2008 00:00:00 GMT

Construction has started on Mont Blanc, a sectional title security complex in Gordon's Bay...

Now is the wrong time to stop investing

Sat, 19 Jul 2008 00:00:00 GMT

You are going to have to keep your financial head below the parapet for some time as the property and equity markets take a hammering in economic conditions that are fast resembling a war zone...

Durban's Warner Beach area to be upgraded

Tue, 8 Jul 2008 00:00:00 GMT

Plans are afoot to upgrade the run-down and neglected Warner Beach area, to make the most of its magnificent ocean views and its untapped eco-tourism potential...

Property investor interest in South Africa growing but Zimbabwe remains a 'dark cloud'

Sat, 5 Jul 2008 00:00:00 GMT

Property investors in South Africa are encouraged by a wider selection of properties and taking advantage of bargains as over-extended owners come under pressure to sell because of higher interest rates...

Raising SA's profile

Fri, 4 Jul 2008 00:00:00 GMT

CNN International has joined up with South African Tourism in an attempt to raise South Africa's profile ahead of the 2010 World Cup...

Tourism boosts South African investments

Fri, 16 May 2008 00:00:00 GMT

Owners of rental accommodation in South Africa are benefiting from a strong tourism sector, it has been reported.

According to Homes Overseas magazine, visitor numbers in the country went up by about nine per cent last year.

This was said to have resulted in the holiday industry generating nearly £25 billion for the national economy.

As a result, many buy-to-let investors will have seen increases in their occupancy rates and rental yields.

Furthermore, this trend of upwards growth is expected to continue in the run up to the football World Cup, which is being staged in the country for the first time in 2010.

South Africa's government recently revealed that it wants to attract ten million foreign visitors in two years time.

According to deputy tourism minister Rejoice Mabudafhasi, visitor numbers have gone up by 1,415 per cent in the last 14 years, reports AllAfrica.com.

Asba: Now a Good Time to Buy Property in South Africa

Fri, 11 Jan 2008 00:00:00 GMT

Stagnation in the price of South Africa property makes it a good time to invest in property for the long term, according to senior property analyst for Absa Jacques du Toit.

The average house now costs 964,000 South African rands (72,175 GBP) with prices expected to remain level for 2008, depending on possible interest rate increases, AllAfrica.com reports.

"It's possible that we could see another rise at the end of January, but we are of the opinion that we have seen enough interest rate increases in the past year," explained Mr Du Toit.

Asba is one of the largest South African financial services organisations, working with businesses and private consumers.

The latest Asba reports showed that house prices did not increase between October and November 2007, with Mr Du Toit predicting that declining household income would also impact on prices.

However, Neville Schaefer of Trafalger property managers suggested more caution, suggesting that waiting to check upcoming interest rate reports before investing.

Long-haul flights opening up new destinations

Wed, 17 Oct 2007 00:00:00 GMT

More flights to new long-haul destinations such as New Zealand and China are boosting the number of British offshore retirees, it is claimed.

The over-50s could represent a profitable market for investors through holiday homes as Saga revealed that long-haul destinations remain popular among the age group.

A company spokeswoman commented that new routes from UK airports are encouraging over-50s to spend their holidays in long-haul destinations, after a recent Saga survey found that a third of the age group said adventure was an important part in choosing their holiday destinations.

The Saga spokesman noted that based on factors such as ease of access, cheaper flights, climate, and the cost of living, ten per cent of people said they were considering offshore retirement in such destinations.

She noted that new routes offered by airlines enable holidaymakers to be attracted to new activities, such as flights over the Zambezi river in South Africa or taking a sky train through the Costa Rican rainforest.

"I think having more options about who to fly with and which airport to fly from has encouraged more people to travel long-haul," the spokeswoman added.

Recent Saga research also revealed that a third of over-50s are more concerned about the quality and length of their holidays compared to when they were younger.

South African property prices rising

Tue, 7 Aug 2007 00:00:00 GMT

Property prices in South Africa are on the increase, offering lucrative opportunities for property investors taking a long-term view of the market.

These developments are indicative of the rising popularity of South Africa for foreign buyers, attracted by appealing investment opportunities in an emerging market. Many investors are beginning to set their sights further afield than in the past, prepared to look further abroad for lucrative deals.

New reports from the Global Property Guide show that South Africa has seen year-on-year house price growth of 16.74 per cent in the first quarter of 2007, having risen steadily for seven years and reaching a peak at 30 per cent in 2004, Homesgofast.com reports.

Similar positive growth has been evidenced in Australia which underwent something of a slowdown from 2004 to 2006. Year-on-year house prices were up by almost eight per cent in the first quarter of 2007 up from four per cent during the same period in 2006.

Conversely, prices have seen a steady slowing in the US.

Fractional ownership schemes in South Africa have made luxury housing available to a growing number, accoridng to Helium Report.

'UK investors are looking to South Africa for new opportunities'

Thu, 17 May 2007 00:00:00 GMT

South Africa has been experiencing a surge of interest from British buyers who are looking to invest further afield than eastern Europe, according to International Property Solutions.

Spokesperson Heath Adamson said that South African expatriates have traditionally dominated the market, but UK buyers are increasingly investing in the country, particularly on the Western Cape and in the capital, Cape Town.

Although there is some hesitation amongst buyers with regarding the crime issue in the region, this does not seem to have halted the recent foreign investment, he added.

Commenting on mortgage and lending, Mr Adamson said: "There are restrictions with regards to foreign borrowing ? the maximum lending value is 50 per cent for non-South Africans, but for South Africans living abroad, you can get up to 100 per cent.

"South African lenders are willing to lend to foreign buyers. Barclays recently bought one of the biggest banks in South Africa ? Absa ? so hopefully they're going to be coming up with more products."

As the 2010 World Cup, which is to be held in South Africa, edges closer, Cape Town City Council has said that economic growth and job creation are priorities.

South Africa 'sells itself to investors'

Tue, 15 May 2007 00:00:00 GMT

The property market in South Africa, especially Capetown, has seen "very steep growth" and now rivals Europe when it comes to investment opportunities, a property firm has said.

According to International Property Solutions, there is no sign of the market slowing down, especially as the country is set to host the 2010 World Cup.

Sales and marketing director Heath Adamson said that the weather, the landscape and the strong pound, which goes much further in South Africa than it does in Europe, are all reasons why investors are attracted to the country.

"South Africa sells itself to visitors. We generally find visitors after one trip to South Africa come to us looking for a property ? a holiday home or an investment," he stated.

"If you're looking to spend in Spain or western Europe, you need to be stumping up anywhere in the region of £200,000 for a flat, whereas in South Africa, you can probably get the same product for half that or even less."

Despite recent prices increases, the fundamentals in the South African market are still healthy, which makes the country "well worth considering" as an investment opportunity, according to Property Frontiers.