Holiday Lettings news - Holiday home buyers 'dwindling' in South Africa

Holiday home buyers 'dwindling' in South Africa

Demand for holiday homes in South Africa has dwindled, according to a property market expert.

Managing director of Pam Golding Properties, Mick Joyce, said that fewer people were investing in holiday homes in the past quarter.

According to Mr Joyce, the slowdown could be due to the fact that interest rates are rising in the country, while the South African property market as a whole is less buoyant.

He told website Fin24: "Existing owners of second houses aren't yet returning holiday homes to the market, but interest from new buyers has dwindled."

Robert Kroger, the manager of The Registry Collection Africa, said that holiday home owners are being forced to take part in fractional ownership, in which properties are divided up into shares and sold, with each shareholder having certain privileges with regards to the home – for example, a number of hours or days per year.

Mr Kroger suggested that banks should introduce fractional buyer mortgages, which could help boost the market.
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