While the South African rand has experienced a recent softening in the face of foreign currencies, a interesting situation appears to be growing where foreign investment in South Africa is actually increasing, particularly areas such as Cape Town, according to Tony Clarke, representative of Rawson Properties.
Mr. Clarke released his opinion following a recent meeting with one of the substantial offshore and finance companies which are now funnelling funds to fuel investment property purchases through out 12 ‘jurisdictions’. This company in particular enables investors to finance in the currency of choice, but at a localised interest rate.
Such an atmosphere of currency exchange and currency values is increasingly attractive to many South Africans currently residing in the United Kingdom. The expatriate property market is a prime sector seen as having a substantial level of potential. “The British are now major buyers of overseas property and are aware of the value available in South Africa, which now ranks fourth in popularity as a second home venue following Spain, Portugal and Greece,” according to Clarke.
This increasing level of foreign investment into South Africa was echoed recently when Growthpoint Properties, one of the nation’s largest property companies, confirmed that they were continually attracting foreign investment, even in the global climate of market troubles. The firm’s size and considerably high level of liquidity is attracting investment funds and interest from foreign investment firms who prefer stocks that are liquid, due to the fact that they have the choice to opt in and out in a quick fashion.
However, there is still a substantial amount of concern regarding uncertainty regarding the South African government’s view on foreign property ownership, and also a recent failure in the country’s power supplies. It appears as though such concerns are not deterring many investors, and Clarke stated that his recent meetings have indicated that investors are monitoring the situation in South Africa, but are not avoiding the market.
