Repeated calls from left wing politicians in South Africa today for limitations to be placed on foreign land ownership will result in South Africa being seen as a Third World ‘shackled’ country without a truly free economy, says Lanice Steward, Managing Director of the Cape estate agency Anne Porter Knight Frank.
 
“The type of legislation proposed is out of step with the practices of those countries which really welcome foreign investment and strive to make it as secure as possible,” says Steward.
 
A report from Anne Porter Properties’ UK associates, Knight Frank, says Steward, shows that just under 60% of all new build property sold in central London between 1^st December 2010 and 31^st May this year was bought by Asian buyers.
 
Knight Frank ‘s report indicates that they were driven by two main factors:  an increasingly favourable exchange rate and central London’s reputation as the top destination for property purchases by international buyers - which, of course, is linked to its property prices being in the same league as those of New York, Paris, Monaco, Cannes, Hong Kong, Singapore, Beijing and Kuala Lumpur.  Average house prices in central London have risen by an amazing £767 every day over the last year – but are now slowing down.
 
Hong Kong buyers were the largest Asian group to buy into London (24% of the total), followed by Singaporean (12%) and Chinese (10%).
 
Knight Frank’s international project marketing team reported in early June that they had sold £20 million of London property to Asian buyers, with particular success in the £400,000 to £1,000,000 price bracket.
 
In response to the demand, Knight Frank is strengthening its international marketing division in South-East Asia.  A senior manager, Seb Warner, will be moving to Hong Kong, where he will later be joined by Mimi Capas, who will set up a Knight Frank leasing division there.
 
Lanice Steward says that it was clear that Asia is also the fastest growing property trading precinct in the world, with a high percentage of (and continuous interest in) cross-border sales.
 
“Knight Frank have now consolidated their successes in Hong Kong, Singapore and Malaysia and are now targeting Mainland China for rapid expansion.”
 
South African buyers wanting to get in on this flourishing market, she says, should contact her to be put in touch with Knight Frank.
 
“It is significant that Asia Pacific properties occupy the three top slots and six of the ten top spots in the Knight Frank Q1 2011 survey.  Although over half the world’s countries saw property prices either stall or slide in the first quarter of 2011.  Hong Kong achieved an annualized upswing of 24,2%, India 21.9% and Taiwan 14,3%.
 
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.