News: The USA invasion of South Africa

Fri, 07 Sep 07

The Chinese and the Americans are gearing up to replace the Brits, Germans and the Irish as SA's most enthusiastic foreign buyers, according to Sotheby’s International Realty...

Shedding some of their influence, when measured against the new wave, is the number of “swallow” purchaser - a northern European who spends the European winter here – and those that purchased for lifestyle encouraged by the low cost of property.

Estate agents, especially in Johannesburg and Cape Town are now spending more time than ever dealing with cash flush investment hungry Chinese and American buyers.

Sotheby’s is currently busy with Chinese interests investigating residential land development purchases of between R300m to R500m. They classify them as “hard-core investors come speculators” with surplus funds drawn to some extent by the 2010 World Soccer and South Africa’s constantly improving global investment rating.

So far, none of the new investor wave has been directed at KZN, but given the good property opportunities in the province, he does not discount the province featuring in their future plans.

Central African buyers have also become a rising feature in Johannesburg with main focus in the R3m to R5m price range.

These purchases are usually made with cash or money transfer. Most of these buyers are employed with multi nationals and relocating to Johannesburg drawn by the city’s emergence as the continent’s financial power house.

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