Reforms give boost to South African real estate
HOMES in Cape Town and Durban are being offered to local buyers at half the price of comparable coastal properties in Australia, according to organisers of the South Africa Unlimited property exhibition.
For example, a 1,300-square-foot flat with three bedrooms at the High Cape estate in central Cape Town would cost only US$70,000 (HK$541,000), said Paul Woods, executive director of the Kingfisher Group, one of the financiers behind the projects on show.
The show, which features 100 houses and flats at five new developments, is the first exhibition of South African property to be held in Hong Kong. The exhibition, at the Pacific Place Conference Centre, ends today.
Mr Woods said the show's organisers were aiming to take advantage of the interest Southeast Asians had shown in South Africa since the advent of majority rule.
Project developer Murray and Roberts is targeting Hong Kong investors, South African expatriates and potential immigrants - particularly British, Indian and Chinese.
Mr Woods said South African property could soon become expensive since the market was booming, which was also attracting more overseas buyers.
Property values had increased at an annualised rate of 21.7 per cent since Nelson Mandela became president seven months ago, he added.
Prices are expected to double over the next two years as the lifting of sanctions has helped boost the economy. The end of apartheid has also increased demand because it has opened the housing market to South Africa's 30 million blacks.