Brits attracted to buyers’ market in Cape Town

Brits attracted to buyers’ market in Cape Town

A growing number of international purchases are taking advantage of a buyers' market in Cape Town, South Africa, where foreigners account for almost seven per cent of total sales, the highest proportion in any South African city, with the British a prominent force, according to a new report.

A new Cluttons South Africa report for the first quarter (Q1) of 2011 shows a lengthening in the average time homes in Cape Town spent on the market before selling, from 15 weeks and six days in Q4 2010 to 19 weeks and one day.

The slow nature of the market is attracting more foreign buyers trying to take advantage of current market conditions by negotiating a lower priced property purchase, with just 15 per cent of vendors achieving their asking price.

Jacques Ellis, managing director, Cluttons South Africa says: "British buyers can benefit from substantial discounts by shopping around. It is important to look for quality and prime locations".

The Cluttons South Africa report shows that since the bottoming out of the recession in 2009 when market values had dropped in most areas by up to 15 per cent, there has been a marked increase in property transactions, particularly in the in the lower end of the market, where prices start from around £90,000.

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A Place In The Sun