Bristol property investors are buying commercial properties in South Africa to boost their earnings and keep them up-to-date, according to the latest property survey.
Key points:Property investors are looking to buy commercial property properties in a bid to boost revenues and keep up-trending propertyThe property companies are buying properties with a mix of commercial and residential propertiesThe survey, released on Tuesday, found that commercial property investors were buying properties in large volumes, with some properties being sold to commercial buyers for as much as £40 million ($59.5m) per property.
The survey by the South African Property Council (SAPC) also found that property developers were buying commercial property for a record-breaking amount of money in 2017, with the average purchase price reaching a record high of $2.8 million ($4.6m).
It also found a number of other properties were being sold for more than the average price, with commercial developers purchasing more than $1.3 million in commercial properties for sale in South African cities in 2017.
“The commercial property market is now showing signs of life as commercial property owners are buying large quantities of properties and holding on to them,” said SAPC chief executive Mark Perna.
“We are witnessing an exciting growth in commercial property in South Australia and are witnessing a number, such as the Bristol Property companies, who are building and buying properties for commercial purposes,” Mr Pernan said.
“There is a significant number of commercial property companies in South Africans and the growth is creating jobs in Bristol.”
The survey also found commercial property was one of the main drivers of growth for property developers in South Korea and Singapore.
The South African survey, which was conducted in April 2017, found a high level of residential property investment by developers.
It found that developers were adding 1,788 residential properties to the country’s total residential property market, while residential investment was up by 8% in the last six months.
The commercial developer sector, which includes commercial properties, is also expanding in South Asia, with companies like the KPMG-owned and owned-by-the-people-of-South-Korea and South Korean property developer GRC Holding acquiring properties.
“Our survey shows the commercial property investment in South and Southeast Asia is growing at an impressive rate, which is a major driver of the growth in the commercial market,” SAPC director-general Richard Tufnell said.
The number of residential properties being purchased by commercial property developers was also up by 1% in 2017 to the highest level since 2008.
“Commercial property is a highly mobile market and is becoming increasingly diversified,” Mr Tufell said.
He said residential property development was one area that was seeing significant growth in South America, which had been hit hard by the economic crisis.
“A lot of companies have been looking to invest in residential properties in Latin America as they have a significant potential in the country, especially in Brazil,” Mr Muthiah said.
Mr Tufnel said there was a huge opportunity for South Africans to benefit from this as commercial developers were looking to take advantage of the new low cost of living and the favourable tax incentives in South Asean.
“Commercial property developers are also investing heavily in South American countries like Brazil and Argentina, which are now the most heavily developed economies in the region.”
South African companies are investing heavily into Latin America and are also actively recruiting people from the region,” Mr Kowalski said.
South Africa has the highest number of people living in poverty in the world, with a total of 2.3 billion people living on less than $2 per day.
The median household income is around $1,200, while the average annual salary in South Sudan was just $1 a day in 2017 (about $0.06 per day).
The median age in South-Korean cities was 26 and in Argentina it was 29.