The expats who are returning to SA in ever-increasing numbers have a variety of reasons for doing so, but one which features again and again is the very high cost of even small homes and apartments in the countries where they have been living, compared to what they can buy, for much less, in SA.
In many instances, this is being compounded by a lack of inventory in other countries because new development, which slumped during the Covid-19 pandemic, has still not caught up to rising demand.
In the UK, for example, the latest statistics from Zoopla show that the average house price is now almost GBP453 000 (or around R10m), although it has only risen by around 1,2% year-on-year. The average apartment price is GBP191 000 (about R4,2m). At the same time, the UK has a significant and long-standing housing shortage, which is leading to unaffordable rentals, rising homelessness and a lack of security, especially in prosperous areas with high employment.
Meanwhile in the EU, the latest Eurostats figures show that house prices rose by 5,5% in the third quarter of last year, compared to the same period of 2024, and that rents increased by 3,1%. In France, for example, house prices now range from around Euros3000/sqm (R60 000/sqm) in smaller towns to around E11 000/sqm (R210 000/sqm) in Paris.
In Germany, prices for existing single-family homes currently range from around Euros3500/sqm to around Euros8000/sqm, while in the Netherlands, the average home price rose more than 5% last year to around Euros487 000 (about R9,4m). In all three countries, and many others, sales are currently being constrained by a lack of stock.
In the US, average house prices now range from around US$410 000 to US$433 000 (R6,8m to R7,2m), following a 2,2% increase last year, while in Australia, another favourite destination for SA emigrants, strong demand, limited supply and increased investor activity pushed prices up by more than 8,8% last year. The national average is currently AUD880 000 (around R9,7m), but the average in big cities ranges from AUD1m all the way up to AUD1,78m in Sydney.
By contrast, the average home price in SA is currently just under R1,7m, with prices for two-bedroom apartments ranging from R1,1m to R1,6m and those for four-bedroom family homes ranging from R2,2m to R3,5m.
