Land ownership rules ‘scare off investors’
Author: Ray Mahlaka
Government’s moves to restrict land ownership by foreign nationals is set to impact the economy, as South Africa’s regulatory environment is already viewed as hostile towards foreign investors, property experts say.
Figures from analytics company Lightstone indicate foreign purchases comprise 3% of South Africa’s residential sector.
Foreign nationals will be restricted to leaseholds of 30-50 years and will not be allowed to buy land.
The Presidency said at the weekend foreign nationals are defined as “non-citizens as well as juristic persons whose dominant share holder or controller is a foreign controlled enterprise, entity or interest. Hence not all immigrants to South Africa will be excluded from land ownership”.
In another twist, South Africa will now look to restrict land ownership for locals to a maximum 12 000 hectares. “If any single individual owns above that limit, the government would buy the excess land and redistribute it,” the Presidency said.
Follow the link below to read the full article: