Rand attracts international buyers to Cape Town

Nick Pearson, branch manager, Tyson Properties Atlantic Seaboard

“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 and value-for-money,” he says.

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.

Array of purchasing reasons

“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,” Pearson says.

Typically their entry-level acquisitions are R6m, but this can rise into hundreds of millions depending on their purchase with Pearson indicating the bulk are cash buyers.

The good news for local residents and other holiday-makers was that these buyers are also renting on their properties, effectively meaning Cape Town is experiencing a boom in the short-term letting industry.

Traditionally international buyers have purchased with cash, injecting direct foreign investment, tax and jobs into the country and local economy.