Real Estate Investor Magazine South Africa March 2013 | Page 57

REI Offshore

E-commerce saved the USA

Law To Bar Foreign
Ownership Of SA Farms

South African’s
Look Towards Namibia

Regardless of the destruction it’s causing to the
bricks-and-mortar retail industry, e-commerce
development helped prevent the downfall of the
US industrial market.
After rising to the top, in retail store battles,
major chains such as Best Buy and Barnes
& Noble are still planning to cut hundreds
of stores in 2013—but with the help of the
e-commerce boom, the supporting industrial
market has emerged strong this year with
declining vacancy and modest rent growth
in most markets. Global e-commerce is
expected to double to $1 trillion in three
years, with Amazon taking at least a quarter
chunk of that ma rket.Demand for new
distribution centers today is strongest around
the ports, but is also expanding in major
population centers such as large cities in
California, Texas, and New York.

Foreign nationals will no longer be able to own
land in South Africa once government’s land
policy is finalised and passed into law, Land
Reform Minister Gugile Nkwinti said.
“All people who are foreign nationals will
not own land, but will lease land on a longterm basis,” he said. Nkwinti was responding
to a question during a “dialogue” with farm
workers in Paarl. The question had to do with
foreign ownership of farms. The minister said
government had completed an audit of stateowned land, but was still busy with its audit of
public and private land. “Privately-owned land
includes land which is owned by foreigners. We
are busy auditing all of that land,” he said.
When the audits are complete and government’s
policy is promulgated into law then “people who
are foreign nationals will not own land, but will
lease land on a long-term basis,” said Nkwinti.

Historically an appealing destination for South
African tourists, Namibia is experiencing
increasing interest from South African home
buyers, mainly among those seeking to acquire
homes in Windhoek and leisure and residential
properties in Swakopmund, says Dr Andrew
Golding, CE of the Pam Golding Property group.
The appeal of the Namibian property market is
further aided by the fact that Namibia is part of
the Southern African Customs Union (SACU)
and the Southern African Development
Community, which plays a significant role
in facilitating trade between the countries.
All indications are that this trend is likely to
continue for the foreseeable future. Further
positive news is that the Namibian economy
is showing resilience in the face of the global
economic challenges and shows the potential not
only for growth but increased cross-border trade.

Valuable Input

Tom Waite, Associate
Director, Jones Lang
LaSalle
“We clearly see upside
potential in 2013,
driven in particular by
further large portfolio
and platform deals. We
also expect continued
demand for strong
income-producing
opportunities.”

www.reimag.co.za

Rob Davies, Trade
and Industry Minister

Jane Clough, Sales
Manager, Pam Golding

Dr Andrew Golding,
CE, Pam Golding

“There is an urgent need
for Africa to develop
industrial policies
which will underpin
the diversification of
production structures,
raise competitiveness
levels and expand the
continent’s export
basket.”

“Traditionally,
London has proven
a popular location
for South African
buyers, many of whom
have family overseas
or require a London
residence for part-time
business or personal
use.”

“Due to its proximity,
Namibia remains
an attractive option
for South Africans,
including real estate
investors looking
to diversify their
investment portfolios.
Many of the South
African enquiries are
for Swakopmund.”

Craig Illman, CEO,
Propwealth
“Cash flows versus capital
growth? South Africans
are starting to realise
that cash flow is what is
needed from a property.”

March 2013 SA Real Estate Investor

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