The FNB Estate Agent Survey has pointed to further improvement in the levels of foreigner buying of South African residential property in the final quarter of 2014. While Rand weakening has subsided of late, SA residential property still appears cheap for foreigners after a major earlier Rand weakening, and Rand weakness may still be a factor in supporting the level foreign buying. However, we still contend that the recovery of property’s popularity globally is the bigger driver of foreigner buying.
DESPITE RAND WEAKENING SUBSIDING, FOREIGN DEMAND FOR SA RESIDENTIAL PROPERTY CONTINUES TO STRENGTHEN
The South African residential market has become a lot cheaper in recent years for foreigners whose incomes are denominated in some of the World’s major currencies. This is due to a major depreciation in the Rand over the past few years, which has negated any house price growth which has taken place in Rand terms.