|Dr Andrew Golding, CEO Pam Golding Property:
“Every time this issue rears its head, it further serves to erode confidence in the country as an investment destination – mainly as a consequence of issues of uncertainty. And while nationally this is still a proposal, the fact is that by its very nature it erodes foreign direct investment appetite, and potential investors who may be weighing up South Africa versus a number of other destinations will potentially simply choose to invest elsewhere.
“Certainly it is worth reiterating that the level of foreign buyers of residential property in South Africa is so insignificant relative to the total market, but more importantly, the benefits of foreign investment in property in this country and the knock-on effect of that investment far outweigh any perceived negative.
“Leasehold is not a conventional South African methodology and would require significant understanding and implementation of dramatic changes to current property practice, not to mention the question of whether or not this is a Constitutional issue as well.”
Rose White - Principal Chas Everitt Hoedspriit, Phalaborwa and Tzaneen
I think the government has not thought this bill through sufficiently. In one breath they say that they are concerned about food security and this is why they want to do it, then they say foreigners are buying expensive houses in the Cape. You wont be able to produce much food from a garden in a house in the Cape!
They would do better empowering the people or black farmers who have received land claimed farms or grants to buy farms and make sure that those farmers are producing food on their land. There is so much farm land lying fallow due to a lack of support or knowledge on how to farm.
Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty
“President Zuma’s statement that the government intends to promulgate legislation prohibiting foreign land ownership in South Africa is a severe miscalculation that is likely to have serious repercussions on investor confidence in the country.
“Considering the fact that foreign land ownership stands at less than 5%, this should not even be on the government’s agenda at a time when we are facing far bigger problems such as the energy crisis and we can, quite frankly, not afford to shake investor confidence in South Africa more than it has been already.
“While the percentage of foreign ownership is low, the calibre of ownership is exactly what we need in this country; captains of industry, multinational corporations and international social influencers of one type or another. With this proposed legislation what we are effectively saying to them is they’re not welcome here.
“My suggestion to foreigners is make hay while the sun shines; buy land now before this legislation is promulgated and a cut-off date is announced, because I can’t see the government stripping foreigners of assets without an international outcry. Those who own land before the cut-off date, should be able to retain it.”
Wendy Machanik - Real Estate Guru
It is an absolute disgrace and negative step not allowing foreigners to buy in SA – this will definitely affect the economy and deter is not stop altogether foreign investment into this country.
This foreign investment policy and the maximum 12,000 hectare ownership of land are definitely steps towards the degeneration of this country.
Both these steps will negatively impact on the property market
There is no doubt whatsoever that SA is fast following in the footsteps of the rest of Africa. This is a tragedy as this was a most promising county with a great future, this is no longer the case.