Ramaphosa's election good news for South Africa's luxury property market, says expert

Ramaphosa's election good news for South Africa's luxury property market, says expert

- A property expert said the South African luxury property will be positively impacted after Ramaphosa’s election

- He added Johannesburg, which is the financial capital of Africa, would especially benefit

- Luxury buyers held back over uncertainties in the ruling party, prior to Ramaphosa’s appointment

According to Rory O’Hagan, CEO of the Luxury Portfolio division at Chas Everitt International, Ramaphosa’s win could have a positive impact on SA’s luxury property, especially in Johannesburg

O’Hagan said Johannesburg is the financial capital of Africa, as there is generally no real shortage of luxury buyers in Johannesburg.

He added the luxury buyers have been holding back over the past few months in the sense that they have been reluctant to spend more than about R10m to R15m, pending the outcome of the ANC conference.

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“However, the orderly nature of the conference and the election of Mr Ramaphosa as the new ANC president seem to have broken the log-jam, and we have already received a flood of enquiries just in the past few days for homes in the R20m to R30m range.” O’Hagan said.

He added the top suburbs and estates close to Sandton are the real gems, offering investors value for money.

O’Hagan said they would also expect the trickle of high net-worth buyers that moved back to Gauteng from Cape Town over the past year, to turn into a steady stream as economic renewal continues.

Samuel Seeff, chair of the Seeff Property Group, added the slower semigration could also be ascribed to the slow rate of sales in other provinces, along with costly prices in the Western Cape, which also put a constraint on the markets.

According to Fin24, Semigration means the trend of people relocating, mainly from Gauteng to the Western Cape.

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Although foreign holiday home buyers and investors will to continue to favour Cape Town, according to O’Hagar, the water restrictions and strengthening rand might subdue prices in the region for the next few months.

Briefly.co.za gathered Lew Geffen, chair of Lew Geffen Sotheby’s International Realty, anticipates a huge improvement in the property market in 2018 following Ramaphosa’s election as ANC president.

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Source: Briefly.co.za

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