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May 13, 2009
‘Staggering’ growth in foreign property owners
Thabang Mokopanele
Business Day
While the debate about foreign property ownership in SA continues, figures show the percentage of properties owned by foreigners is considerably smaller than expected. However, the growth over the past five years is staggering. Lightstone’s business development director, Andrew Watt, argues that the true extent of the level of foreign ownership is not understood.
In 2004, only 2189 residential properties were owned by private foreign individuals but this year this had risen to 30661.
The latest figures show that 35000 foreigners own 30661 properties in SA, which represents about 0,56% of all residential properties, or 1,62% of privately held properties valued at more than R500000.
To offer a true reflection of foreign ownership in SA, Watt has completed an analysis of foreign property ownership by private individuals.He says only 1,6% of privately owned properties valued higher than R500000 are foreign owned, and 44% of these are inland freehold properties.
Watt says private foreigners are identified in the Deeds Office data as “individual owners that lack a South African identity number”. This excludes companies, trusts and other legal entities.
He says while there are shortcomings in the definition of foreign ownership as it excludes ownership of properties through legal entities, it is unlikely that these would play a significant role in boosting overall foreign ownership numbers.
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