PROPERTY: Higher Tourist Inflows a Plus for SA Homes Market
Recent Gauteng Business News
Ennik Estates is the exclusive affiliate in Gauteng of US$100-billion sales a year ChristieÂ’s International Real Estate Â– the London-based global luxury property arm of the worldÂ’s largest and oldest fine art auction house.
Â“It is a fact that many incoming tourists take time off to enquire about investment in residential property in South Africa Â– a country which The Telegraph (London) listed less than a year ago as one of the worldÂ’s top 10 property safe havens.
Â“If just 2% of our first quarter visitors took a serious look at South African residential property during their stay, they would have generated 44 000 firm enquiries. It would take only a 2,3% conversion of those enquiries to produce 1 000 sales,Â” says Ronald.
Pie in the skyÂ‘
Â“No. Not if you consider the continued sentiment-sapping fall-out from the euro debt crisis, the persistence of the economic slowdown in developed countries generally and, now, the further plunge in confidence in world banking following the Libor-fixing scandal in the UK,Â” says Ronald.
Â“Northern Hemisphere investors are seeking new, and safer, destinations for their money, and South African real estate is a good option Â– particularly for those who are already corporately involved in the explosion of growth in Sub-Saharan Africa, and are using SA (and particularly Sandton) as their gateway.
Â“This could be a key factor behind the rise of almost 10% (to 133 729) in the number of UK visitors to our country in the first quarter, as well as the increases of 16% and 15% respectively in arrivals from the US and Germany,Â” says Ronald.
What also jumps out of the latest tourism stats is a strong uptick in visits to SA from fellow Brics countries Brazil (up 71,7%); China (67,7%); and India (23,1%).
Â“This ties in with the ChristieÂ’s view that the Brics countries are one of the world arenas of future (homes market) growth Â– with a focus on bi-directional referrals.
Â“Once the current, unsettling, political uncertainty in South Africa is laid to rest, one way or another, at the ANCÂ’s meeting in Mangaung in December, many wait-and-see foreign investors will hopefully not only bump up our tourism rates even further but will also become owners of residential property in SA,Â” Ronald concludes.
Business News Sector Tags: Property|