Visa Regulations don’t just affect Tourism, but property sales too!

imageNot just the Tourism industry, but also the property market in Cape Town is affected by the Visa Regulations! Estate agents on the Atlantic Seaboard and City Bowl say that the Tourist decline is mirroring a decline in property sales.

Since the introduction of the Visa Regulations the impact has been felt in the property market. Foreign buyers are more likely to buy property when they are in Cape Town. Since April this year Atlantic Seaboard and city centre estate agents have found sales by foreigners to be on the decline. Usually foreigners represent 20 – 30% of buyers on the Atlantic Seaboard and in the city. The loss in turnover in lost international property sales could represent R1/2 billion this year, or 37% fewer properties than in the same period last year. The absence of foreign buyers is particularly evident in the R20 million plus property price category.

Biggest property buyers are usually from the UK, but sales are down by 40%, and purchases by Americans, Germans, and by Africans from other countries on our continent are down by 50% relative to a year ago. Foreign sales declines are more prominent in the City Bowl than on the Atlantic Seaboard. A similar trend is expected for holiday rentals over the Festive season.

Source: Atlantic Sun

Chris von Ulmenstein, WhaleTales Blog: www.whalecottage.com/blog  Tel 082 55 11 323 Twitter:@WhaleCottage  Facebook:  click here

 

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