One of the surprises of the December/January holiday season has been the number of potential foreign buyers showing interest in Cape homes, says Bill Rawson, Chairman of Rawson Properties.
This, said Rawson, has been confirmed not only by many of his Cape franchisees but also several of his colleagues in the property and Liz Phillips, of the UKs Observer, who has been on holiday reporting session in the Cape. The Observer has one of the UKs largest weekend supplements on property and travel.
'Liz Phillips told us that Cape Town is now one of the four or five preferred places for Britons to buy overseas,' said Rawson. 'The 12% weakening of the Rand in the last half year has given us a small, but significant edge when it comes to attracting foreign buyers'
Ms Phillips and other UK visitors, said Rawson, had stressed that although the Capes scenery will always be a big attraction, excellent restaurants, golf, race courses are now very much part of the Capes appeal. 'One in six UK middle-class businessmen now play golf and with over 400 racecourses, horse-racing is enjoying an all-time boom in the UK. However, prices of a golf round in England/Scotland or a visit to the race course, are two or three times higher than in South Africa. Our 55 golf courses and three racecourses are, therefore, big draw-cards to UK visitors.
Michael van der Westhuizen, the Rawson Properties franchisee from City Bowl indicated that he has definitely seen an increase in the amount of interested foreign buyers over the holiday period. 'They are definitely thinking ahead to the 2010 Soccer World Cup and know that this will be a good area to buy in for the tournament' Rawson agents operating along the West Coast indicated that many South Africans working abroad are now investing in South African property for their return in three to five years time. This is to ensure that they can have the security and lifestyle they prefer when returning to the country. Greenpoint franchisee, Burgess Patterson, indicated that his office has had many walk-ins from interested foreign buyers. 'There has definitely been an increase in interest from foreigners looking to buy in the area as a result of the 2010 World Cup. Many are cash buyers and they are looking to invest in guest houses in the area'
Another surprise of the December/January period, said Rawson, has been the renewed enthusiasm of local property investors. 'Time and again we were told investors had been put of by high interest rates, rising prices and lower returns and are returning to the JSE'
'Our experiences do not tie in with this. We are daily receiving enquiries about possible good buys and these enquiries are not looking only at the booming lower section of the market. Camps Bay, Greenpoint, the V&A Waterfront, certain CBD fringe areas such as Oranjezicht, Constantia, Bishopscourt and Kenilworth are still attracting investors, most of whom are prepared to settle for a 3%-5% return because they believe that values will continue to climb steadily'
Investors, added Rawson, should note that although Southern Suburbs are at a all time high, they are now considerably cheaper (m² for m²) than those of the Atlantic Seaboard. It is, he said, still possible to buy an exceptional home in the better Southern Suburbs for R3 million to R5 million. The same money will get you little more than an apartment in Camps Bay.
Homes in Hout Bay, Noordhoek, Fish Hoek and Simons Town, Rawson predicts, will experience better than average growth because their prices are now particularly low by Cape standards. He also perceives the coastline properties from Strand round to Pringle Bay and on to Gansbaai experiencing better than average growth.
'Only now,' he said, 'is the general public beginning to realize how beautiful and unspoilt this area is'
