Decline in property investment along Atlantic Sea Board
Seeff says it’s seen a dramatic decline foreign investment in properties along the Atlantic Sea Board.
CAPE TOWN - Property company Seeff says it's seen a dramatic decline foreign investment in properties along the Atlantic Sea Board.
Managing Director Ian Slot says there has been a 30 percent decline year-on-year in foreign buyers buying luxury homes in areas such as Camps Bay, Sea Point and Green Point.
Slot says the Atlantic Sea Board and City Bowl seems to mirror the reduction in tourist numbers which have supposedly decreased since the implementation of stricter visa regulations.
He, however, adds there is no evidence that supports the decline in foreign investment is as a result of the visa requirements.
"Most foreigners almost exclusively make the decision to buy in South Africa when they are here. So it's imperative to foreigners that they are in the country and the see the beauty of South Africa and make the decision to buy."
A drop in property sales means less transfer duty and other taxes.
Foreign buyers also often improve their properties, this is just part of an economic value chain affected by this development.
Nonetheless, those who do manage to visit the country over the summer months are likely to be swayed to invest in property given the good value that their pounds, euros and dollars can now secure for them.