Cape Town
The most popular area for overseas buyers is the Cape Peninsula,
one of the most desirable places in the world. White sandy beaches,
proximity to the Garden Route and Cape Town's cosmopolitan urban
centre have all combined to raise the profile of the property
market. Cape Town has been heralded as the 'Saint Tropez of
Africa', and the dynamic city is home to a wealth of cafes, bars,
museums, shops and restaurants. With a highly desirable location
and easy access from the UK, it receives 1.6 million foreign
tourists a year. More than £1.07 billion has been invested in the
city since 2000 and the fact that it is due to host the 2010 FIFA
World Cup is bolstering the city's investment popularity. Indeed,
studies conducted following the World Cup '98 in France reported
that property prices rose by 60% in the year prior to the
competition and it is predicted that the tournament will have a
similarly beneficial effect on house prices in Cape Town and the
surrounding area.
Properties are still available in central Cape Town for under
£80,000 ($140,000), but demand is strong, so this will not be the
case for long. Cape Town's southern suburbs perhaps represent one
of the most desirable areas of the city: it is safe and family
friendly, and close to amenities. A two- bedroom apartment on a
secure complex in the popular Hout Bay area costs from £59,000
($115,300). On the Cape Peninsula, the average house price is
£97,000 ($188,000) whilst prices on the Eastern Cape are cheaper at
an average of £76,000 ($148,000).
Western Cape
Most properties bought by Brits are in the Western Cape, which
stretches from St Helena Bay in the west to Durban in the east. The
Garden Route, the coastline of the Western Cape, has long been a
popular holiday spot for South Africans from inland areas as well
as foreign investors. Although prices are still low, this is not
the price haven that it used to be with an average house costing
£81,000 ($157,000).
Over the Christmas holidays, Plettenburg Bay is transformed from
a sleepy coastal town to a bustling holiday resort. There is much
that appeals here, and Knysna's arty lagoon community and
Plettenburg Bay's beaches have begun to attract outside interest,
pushing prices up and creating good rental potential.
Durban
Durban is a recent addition to South Africa's investment scene.
The south coast around Durban has long been popular with locals who
have been visiting the area's seaside resort towns for years. There
are stunning beaches and a number of golf resorts, another factor
which makes the area a popular one. Moreover, Durban will be one of
the hubs for the football world cup in 2010. It is upgrading its
airport and direct flights from the UK will follow. As a result
many recent developments are starting to focus on this area. For
example the Blythedale Development built along an untouched stretch
of coast NE of Durban has prices from £54,000 ($109,800) for a
three bed-room townhouse overlooking the golf course. The
development includes three resorts centred around forest, beach and
golf and will contain 4,500 homes.
Gauteng
Gauteng, formerly Johannesburg's environs, is the main
commercial hub of the country. Demand for property from the local
market is therefore strong, and as prices here are lower than in
Cape Town, this is tipped as a good investment area. Pretoria is
also reputed to represent a good investment opportunity where
owners are seeing the best increases in rental returns. Over the
past ten years, rents for flats grew by an average of 12% per annum
in Pretoria, compared with 9% in Cape Town and Port Elizabeth.
Kwa-Zulu Natal
When it comes to favoured locations, the above areas are the
ones attracting most overseas investors. However, increasing
interest is also being seen in Kwa-Zulu Natal, where prices since
2004 have risen by as much as 36% in areas such as Balito and
Umhlanga. In Kwa-Zulu Natal, on the South Coast, the average house
price is £72,000 ($140,000).
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