South African property market scores as World Cup approaches
South African property market scores as World Cup approaches
Despite a problematic past, property investment opportunities in one South African city are on the up as a major sporting event rapidly approaches. The Daily Mail explores the boom in property investment in Johannesburg and the development of a holiday home rental market there as the 2010 World Cup gets ever closer.
Spurred on by its status as host of the 2010 World Cup,
South Africa is undergoing a makeover and seeing a surge of regeneration, particularly in
Johannesburg. Instead of townships, which the South African government hopes to eradicate by 2014, politicians want to see new homes constructed. However, as people leave the townships, more and more homes are required to accommodate them. Peet Strauss of estate agents Pam Golding Properties described the effect regeneration is having: "Demand for new homes is pushing development in a way we haven't seen before." He went on to add that a new market for luxury apartments was emerging in the city.
A market for holiday accommodation is also establishing itself in and around Johannesburg, with resorts such as Zilkaats and the mountain town of Clarens marketing themselves as options for investment buyers. Professionals are also keen to dispel the notion that foreign investment goes against the interests of South African nationals trying to get a foot on the property ladder. Julian Pokroy, a solicitor specialising in home purchases by overseas buyers, explained: "A misperception exists that foreign nationals buy exclusive, expensive homes pushing up prices to the detriemnt of South Africans. The issue has raised its head on a number of occasions, but nothing has come of it."
Low property prices, in comparison to British standards, are one of the draws for overseas investors thinking of buying into South Africa. An apartment in a respectable part of Johannesburg will set buyers back around £95,000 or for something a little bigger, villas are on the market for £235,000. If you are willing to widen your search field, then prices drop siginificantly the further from the city you go. For example, 30 minutes' drive will reward you with prices just half of those in the city.
In the run up to the 2010 World Cup, Johannesburg's infrastructure is also seeing improvements. An underground tube system and is under construction and there are plans for an over-ground counterpart, new roads and shopping malls are being built and the city's airport is seeing expansion and modernisation, ready to welcome the teams and their fans in two years time.
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2 May 2008
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