Foreigners still buying
2006-05-04
WHETHER it is due to the “ill advised” statements by certain government spokespeople, to the growing strength of the rand or to some other factor, residential property sales to foreign buyers in the Western Cape are declining, said Bill Rawson, Chairman of Rawson Properties.
“According to the latest RPPR figures,” said Rawson, “141 properties were sold to foreigners in March 2004 and 95 in March 2005 - but only 62 in March 2006.
“The trend is quite clearly downward, continuing the downward trend of February after a possible moratorium on foreign buying was announced.
“However, the prices of the properties sold are still showing astounding appreciation: the average price of property sold to foreigners in March 2006 was R3,1 million compared to R1,5 million in 2005. The value of property sold to foreigners has, therefore, increased by 100% over the past twelve months.”
Rawson still feels that the effect of foreign buyers on the property market is over-stated. “Less than 4% of Cape sales are to foreigners.”
“I believe that the government should go all out to encourage foreign buying, but could make it obligatory for the overseas buyer to contribute in some small way to the welfare of impoverished and disadvantaged people.
“That would help scotch the fat cat image of certain foreign buyers and might also deter the really selfish person from investing here.
“With the right PR, it could also do much to highlight the continued plight of those at the bottom of our social scale, the bottom 20% or 25%, who are still suffering from dire poverty, unemployment and disease.”
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