Katlego Sekhu
The Siz The World team recently delved into the growing trend of wealthy foreigners buying property in South Africa, a conversation sparked by social media clips showing digital nomads and international investors praising the country’s affordability due to the strength of the US dollar and the euro.
Sizwe Dhlomo noted that this is not a phenomenon unique to South Africa.
“If you go to Mauritius, you’ll realise it’s mostly foreigners who own property. If we legislate and say no foreigners can buy property in Cape Town, then who’s going to buy it? Can you afford a R190 million property?” he argued.
Sol Phenduka challenged that stance, saying that banning foreign buyers could bring property prices down.
“The price would drop,” he said, adding that high prices are being fuelled by international demand.
Sizwe pushed back, saying that property owners would not be willing to sell their homes for less than what they invested.
“Nobody is going to buy the house for anything less than what they put into it,” he said.
Sol maintained his position, highlighting the wider economic impact:
“We’re still a third-world country. When first-world buyers come in, property prices skyrocket. It disadvantages locals, and our government should be protecting the most vulnerable. How feasible is it to regulate, and what could that look like?”
Mpho Maboi added another dimension to the discussion, referencing the rise of online content encouraging foreign investment.
“There are so many TikTok and YouTube pages promoting South Africa to foreigners based on currency strength. If we keep watching and doing nothing, we’re going to be fighting not just fellow Africans, but people with deep pockets,” she said.
The team opened the floor to listeners: “Can we do anything about it, or should we accept that South Africa has become a hotspot people will continue to flock to?”
To hear the full discussion, listen to the podcast.
Read Next: Why is electricity so expensive? Energy expert breaks it down
