The recent softening in the South African rand against foreign currencies is expected to resuscitate foreign investment in South African, and particularly Cape Town, property, according to Rawson Properties’, Tony Clarke.

Clarke aired his view after a recent meeting with a major offshore finance company now channelling investment into property purchases in 12 “jurisdictions”. The company makes it possible to finance in the currency of the investor’s choice and at the localised interest rate.

Many of these investors, says Clarke, are set to take advantage of a new arrangement between a local and UK-based bank, which will make it possible to buy UK properties but to register the bond in South Africa, and vice versa.

Clarke said that it is increasingly clear that, with so many South Africans currently living in the UK, the expatriate property market offers great potential. A recent report by UK real estate group Knight Frank shows that the British market continues to hold great promise.

“The British are now major buyers of overseas property and are aware of the value available in South Africa, which now ranks fourth in popularity as a second home venue following Spain, Portugal and Greece,” said Clarke.

Asked if such investors had not been deterred by the uncertainty as to how a future South African government might view foreign property ownership, as well as the recent breakdown in power supplies, Clarke said that his meeting with the international group had shown that although foreign investors are monitoring the South African situation, no significant move away from South African investment is likely.