Property still tops investor wish list - poll
Wine farm beats Clifton as dream property investment - residential and commercial property take top two spots.
Residential property is the asset most South Africans would buy in if they had R1m rand to invest according to a recent poll by propertygenie.co.za.
And a wine estate in Paarl is the dream property most South Africans would buy if they had R25m to spend.
The research was carried out late last year by propertygenie.co.za, South Africa's largest online search property portal that lists over 130 000 properties nationwide, to gauge whether South African's perceptions towards property had changed after a series of rate hikes and slower price growth.
"It's still way up on top of investor's wish list with 58% of respondents saying they would invest in residential property if they were given R1m to spend, " says Johan Strydom, general manager of propertygenie.co.za.
"It shows that despite the less favourable environment for house prices, investors are savvy enough to take a long term view and expect residential property to outperform over time."
Commercial property was voted the second most desirable investment with just over 20% of the vote followed by the money market (8.4%) and gold shares with 7.8% of the votes.
Unit trusts received only just over 4% of the votes while only 1% of South Africans would put their money into art.
When asked what sort of property they would buy with R25m, a wine estate in Paarl was the top choice with 35% of respondents, edging out a beachfront house in Clifton which garnered 33% of the votes.
"It was neck and neck in the voting for this one with no clear winner until right at the end of the poll," notes Strydom.
"Wine farms and Clifton have always been the most consistent dream homes for many people and are always on the top of the 'must have' for the mega wealthy set."
Surprisingly, third on the list was the 'half the farms in the karoo' category with 20% of the vote, ahead of a 'beach house in Plett' which got 8.3% of the votes. A mansion in Sandton was the fifth on people's dream property wish list with 3.6% of people ticking this box.
"The survey was consistent with global trends that show that 'lifestyle properties' with space and healthy environments are at a growing premium the world over as cities become congested, polluted and increasingly pricey."