The R100m apartment at the V&A Waterfront in Cape Town has been bought by an unnamed buyer for R110 million. There are three of these luxury penthouses up for grabs at the one billion rand new development at the Waterfront which is due to be completed in October 2009. This R110m makes this penthouse the most expensive apartment in Africa. The developers, lead by tycoon, Sol Kerzner, believe that the other two penthouses will be sold very soon and both fetching amounts in the R110m region.

As many South Africans face harsh times in the current economic climate, property developers continue to build. Property has always been considered a sound investment by many. Not many South Africans can afford to buy new homes right now and sellers are not fetching the prices they would like. It is more of a buyers market at this moment in time as interest rates continue to rise and thus the costs of a mortgage also rise. For those outside of South Africa, this may be a good time to invest for them as they can get some bargains on the property market today if they are purchasing using US dollars, pounds or euros.

To put the current property situation in South Africa in perspective; the monthly payments on a R500 000 bond over 20 years have increased from R4 992 in June 2006 to R6 399 currently. That is an added R1 400 rand every month to someone expenses all due to the increasing interest rates.

Subscribe

Sign-up to receive the latest updates from TheRandToday.com direct to your mailbox

Loading ...