Buying Property in South Africa
Find out what to expect from the property purchase process in South Africa...
As with other developed countries across the world, the property market in South Africa has seen rises and falls over recent years.
The initial sharp decline in sales of properties in South Africa has slowed in recent times and, although this is a good sign for the property market, it has been accompanied by poor sales in the buy-to-let and leisure sales markets.
Financial institutions and bondholders continue to refuse a large percentage of bond (mortgage) applications and demand that large deposits be paid. It is estimated that the average bond applicant for a house valued at R1,000,000 must have R200,000 in savings to cover the deposit and associated costs of the property transfer.
The average price of a full title house in South Africa is R1,029,000 while the average price of a sectional title dwelling, such as a flat in an apartment complex, is a little over R787,000.
A useful website for property data, trends and statistics is the South African Property Transfer Guide.
Both residents and non-residents of South Africa are eligible to purchase property in the country. Non-nationals are subject to the same laws as nationals. The only ineligible people are illegal aliens who are not allowed to own immovable property in South Africa.