Regular contact with overseas associates and property referral organisations have forced her in recent months to accept that South Africa is no longer seen in the same optimistic and approving light that the country experienced in the immediate post-1994 period and over the World Cup.
 
This was said recently by Lanice Steward, MD of the Cape real estate agency, Anne Porter Knight Frank.
 
“Although it is difficult to identify the reasons for the more pessimistic feeling about our country,” said Steward, “five factors have, I believe, definitely contributed to it.”
 
These, she said, are the universal uncertainty created by the Western world’s economic problems, the South African crime figures, overpricing, corruption and the militant, sometimes racist, comments that have regularly emanated from the political left wing.
 
Discussing these aspects separately, Steward said that the global uncertainty factor had been highlighted by the Knight Frank Wealth Report (Knight Frank is Anne Porter Properties’ UK associate) which this year revealed a marked preference among high net worth investors for the traditional top value properties worldwide and very real fears about the Western world’s ability to embrace the austerity measures required to bring about a genuine recovery.
 
“The general opinion among those to whom I have spoken to in the UK recently was that if drastic measures are not adopted immediately, particularly by the USA, we will have to pay for it soon,” said Steward.
 
Asked if this meant that the latest US economic reforms had not been sufficient, Steward said that HNWIs feel that they will in the long run prove to be inadequate.
 
South African crime, said Steward, had regrettably been given “far too much” exposure in the English speaking world’s press and, in her opinion, is now a very real deterrent to investment.
 
Similarly, she said, the perception that corruption is widespread in the country, especially among state, provincial and municipal leaders, is certainly not encouraging overseas investment.
 
On the overpricing issue, Steward reminded us that as long ago as 2009 Anne Porter Knight Frank had issued a warning that house, tourist, entertainment and related prices were rising too fast and that as the rand increased in value South Africa would be in great danger of pricing itself out of the market for UK, European and US buyers.
 
“What was true in 2009,” said Steward, “is even truer today.  If you want to sell a home in an upmarket area to an overseas buyer, you had better get realistic and put it on the market at a price that genuinely recognizes the lack of demand today.
 
“Sellers have to accept that the wonderful prices achieved at the top end of the market are history but in the middle and lower brackets the market is steady – upper bracket hotels, tourist packages and restaurants will see greater fall-offs than the more reasonably priced offerings.”
 
On political matters, Steward said that until recently ANC youth leaders and other radical spokespeople had not been taken too seriously, but, she said, this now appears to be changing.
 
“There is a growing fear that nationalisation of mines and banks might actually one day happen.   Even if it does not, Europeans, British people and others with white skins are now saying that they would prefer not to invest in a country where their skin colour is apparently resented by a large proportion of the population.”
 
Her own views on South Africa’s future, said Steward, remain positive.
 
“I do feel that it is necessary to point out how perceptions are changing, but at the same time I have been amazed at the rapid rise of the black middle class and their growing understanding of wealth creation as opposed to wealth distribution, which is very much the agenda of the left wing.  I also find that there is a huge willingness to work and make sacrifices for a better South African future.  All this makes investment in South Africa logical and property, I believe, at its current prices represents one of the best buys that any investor can make anywhere.  By the middle of 2013 I predict that the current downturn will be easing off and from then I see the economic graph and prices climbing steadily upwards.”
 
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.