Rich foreigners are flocking to this part of South Africa

[ad_1]

Foreign buyers are flocking to the Western Cape, with sales in Cape Town already exceeding the value for 2021 and 2022.

Seeff Property Group said this is due to buyers taking advantage of the rand’s weakness and more European buyers due to economic and geopolitical challenges.

According to Porpstats sales data, Cape Town sales to the end of July this year amounted to over R2.1 billion, far higher than the R1.44 billion for 2021 and the R1.88 billion for the 2022 year.

Ross Levin from Seeff said that the reasonably flat price at the top end of the market and the weaker rand has led to a boom amongst international buyers.

Levin added that below the R10 million range is far more affordable for German or UK buyers than what they can afford in their home countries, with buyers also spending extended periods of time in Cape Town.

There have also been several high-value sales to foreigners in Cape Town, with a notable increase in Russian buyers – one bought a house in Clifton for R150 million – and from the USA.

Outside of second homes, some foreigners are relocating for work purposes, to retire or start a business.

Popular areas for ex-pats in South Africa include Camps Bay, the Southen Suburbs (Constantia and Bishopscourt), the Hout Bay and Llandudno area, Fish Hoek, Scarborough and Blouberg.

Seeff’s Stephan Cross said that Europe is struggling with high inflation, which has led to locals turning to growth markets.

Cape Town is seen as an ideal location as it is seen as well run whilst offering a sustainable and quality lifestyle.

Seeff added that foreigners are also looking to Hermanus and Stellenbosch for an improved standard of living.

Below are several properties on the market in areas where foreigners are ludicrous amounts: