World Cup Normalizes Foreign Home Buyer Levels

July 23 - The World Cup had a very calming effect on foreign buyers in the South African property market, it was announced by FNB Home Loans senior property analyst, John Loos.

According to FNB, the unstable political situation, prompted by the murder of AWB leader, Eugene Terreblanche, saw the percentage of foreign buyers to total sales drop to 2% in the second quarter of this year.

Those numbers were down from 5% in the previous quarter.

However, Loos said that foreign buyers now accounted for 7% of total sales after the World Cup normalized the perception that South Africa was a good market to buy into.

He also said that the World Cup could be capitalized on for at least another decade, with long term foreign investors continuing to do business in South Africa through tourist and other industries.

"Should this be the case, the long term pace of economic growth could be enhanced," said Loos. "This would imply faster employment and disposable income growth than would otherwise have been the case, and therefore faster property purchasing power and property demand growth. What's good for the economy is good for property."

In other interesting property related news, FNB said that 20% of those currently selling their homes were doing so due to financial pressure, while 16% were downscaling.

7/23/2010 7:14:23 AM