Chinese buyers snap up homes
THE PACE and scale of Chinese investment in the economies of South Africa and other sub-Saharan countries is adding welcome traction to the housing market in Joburg, says Gauteng luxury property specialist Ronald Ennik of Ennik Estates.
“A noticeable increase in Chinese corporate branding in and around Sandton confirms that the precinct is clearly the operational base of choice for mainland China companies that are active in the region,” says Ennik.
“ A case in point is the intersection of Rivonia Road and Grayston Drive in Morningside, Sandton, where China Construction Bank and Chinese investment company Sinosteel dominate the skyline alongside South African financial giant Investec.
“This corporate presence is now playing out in the homes market in Sandton, where more and more of the Chinese nationals who are manager and key employees of these companies are buying and renting properties – thus reinforcing Sandton’s international status as the business doorway to South Africa and Africa.”
Among their suburbs of choice are Morningside, Sandown and Strathavon, says Ennik Estates consultant Justine Roux.
“The average Chinese homeowner or tenant in Sandton prefers lock-up-and-go, sectional title-type apartment accommodation,” says Roux.
She says the complicated, and thus specialist, new market segment presents challenges to uninitiated home sellers and marketers – not least in the arena of language and culture.
“For instance, bank statements and all associated documentation need to be meticulously translated and certified, which requires a great deal of ‘back-and-forth’ dealing between estate agents and mortgage originators and providers in South Africa, and banks in mainland China,” Roux says.
Ronald believes that Chinese buying in the Sandton/Joburg housing market is just the tip of the iceberg.
“This is because China’s investment in infrastructural development and natural resource extraction in South Africa and sub-Sahara is forecast to continue escalating.”