South African Homes are Cheaper

October 23 - According to the Chairman of Sotheby's International Realty SA, Lew Geffen, international property buyers can have a field day in South Africa when comparing prices to homes of a similar standard in other parts of the world.

Geffen said that research done through his group revealed that in some upmarket locations in South Africa, prices were around one third less than in major cities such as New York or London.

The South African property market has taken a hit in recent years due to several influences.

The National Credit Act put a halt on wild lending by banks, leading to many people being unable to take out mortgages to buy.

The recession put further pressure on the market, as desperate sellers who could not keep up with their monthly mortgage payments, were putting their homes out for sale for prices that were far less than what they paid for them.

As a result, top homes at bargain prices are still available in abundance on the South African market and international investors are realizing the huge potential there is to be had.

Geffen said that for the going price of a single bedroom unit in the city of London, investors could "acquire an ultra modern loft apartment in central Cape Town, or a three bedroom apartment right on the beach front in Sea Point."

Geffen also compared property prices in Johannesburg to other places in the world, explaining that a two bedroom home in Houghton, where residents could boast of having Nelson Mandela as a neighbor, would cost the same as a small studio apartment in New York.

As more international investors bring in foreign currency to snap up hot bargains in the South African property market, it is believed that the industry will continue to improve even further..

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10/23/2009 8:30:59 AM