Businessman Vivien Reddy says 20 overseas investors have expressed interest in plush Oceans uMhlanga units which range in price from R1.6 million for a studio aprtment to R60 million for a penthouse.
|||Durban - Is South Africa becoming the country of choice for international property investors? Some economists say so, but others have warned of risk.
Oceans uMhlanga units go on sale from 9am Sunday at the Durban ICC. The units, ranging from R1.6 million for a studio apartment to R60m for a penthouse, have attracted investors, including some of the world’s biggest stars.
Durban businessman Vivian Reddy, who is behind the development, told the Sunday Tribune 20 people from Australia and New Zealand were interested in buying units. He is even in talks with a Bollywood actor and a member of a royal family. Both are interested in the R60m penthouse.
Reddy said 5 000 potential investors were vying for 430 units.
Demand for property in South Africa had picked up, he said. “It will be first come, first served today. We are optimistic all the units will be sold today.”
Interest has been robust since the R3.1bn project’s launch.
“uMhlanga is a great investment destination, where property values double within a few years. Local and international people are looking for good investments in South Africa, possibly motivated to cash in on the weak rand,” said Reddy.
Chief economist at the Efficient Group, Dawie Roodt, said people felt comfortable about South Africa. “The bond, equity and money markets in the country offer good returns. In addition, we have a weak currency. These factors make investing in South Africa attractive.
“The moment investors feel safe, they will buy property because it is being sold at a bargain price. Unfortunately, South Africa’s bad leadership in government, the ideological confusion and the bad implementation of policy make South Africa a risky place in which to invest,” said Roodt.
The chief executive of Rode and Associates Property Consultants, Erwin Rode, said he was surprised to hear, in the absence of statistical proof, that foreigners were big buyers in South Africa’s property market.
“The cheap rand makes it attractive to foreigners to buy property here, but there is a reason for the rand’s crash - namely heightened risk caused by the government’s unfriendly stance towards foreign property investors, the whole corporate governance issue at government level and a stalling economy.”
“I believe the negative factors outweigh the positive,” he said.
Sunday Tribune
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