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Foreign property investment not shooting out the lights


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South Africa is not witnessing a flood of foreign buyers, despite the weaker rand, according to Praven Subbramoney, CEO of FNB Private Bank Lending.

He said the bank’s estate agent survey points to a slight decrease in foreign buying and that their statistics show that foreign home buyers (as a percentage of total buyers) was currently at 5%, down from 5.5% at the beginning of 2015.

“The trend can be attributed to a number of factors, such as the level of uncertainty in the global economy,” he said, noting that the potential impact of local fundamentals such as the general state of the economy, limits on foreign buying and the weak rand were other reasons. “The weak currency is viewed as a sentiment dampener, and both local and foreign investors are cautious when dealing in rand-based assets.”


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