Following the historic vote by the British people to exit the European Union (EU), dubbed Brexit, property group Pam Golding said on Monday there was opportunity in the ensuing market mayhem for investors in South Africa’s property industry.
Andrew Golding, chief executive, said the news that the British people wanted to leave the EU had come as a surprise and the ramifications for the South African economy, and the property market in particular, were not immediately clear.
But, he said, South African properties continued to be favourable buys despite uncertainty created by Brexit.
“The attraction of South African property to British and European investors is likely to remain unchanged, although a weaker pound will make it slightly more expensive for UK investors. However, at this stage this appears to be marginal,” Golding said.
The Brexit has resulted in instability in financial markets around the world and knocked value off many currencies, including the pound and the rand.
But, Golding said, because South African residential property was undervalued compared with real estate in other locations, such as London and Paris, this volatility presented an opportunity for savvy investors to invest in property.
“Overarching all of this is the indisputable fact that with uncertainty comes opportunity and savvy investors will see this opportunity and capitalise on it,” Golding said.