The luxury market operates in a completely different manner to other real estate price brackets. While reaching global markets might seem somewhat irrelevant to a seller of a R1 million home, sellers with properties carrying an eight- or nine-digit price-tag might feel differently.
“Roughly 3,000 homes over R3 million are sold across South Africa per quarter. According to SARS’ data, there are 148,266 millionaires in South Africa, most of which earn between R1-2 million per annum. So, you’d be surprised by how many South Africans turn out to be the buyers for these luxurious homes. That being said, foreign buyers do constitute a significant portion of our sales quota around certain nodes across the country. For example, 12.5% of mandates from our RE/MAX Living office were sold to foreign buyers over the course of last year,” explains Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
If your home is situated in an internationally appealing location such as Cape Town, and it is priced well above R3 million, then you ought to be considering expanding your marketing efforts to reach international audiences.
The question you might be asking is how?
“The first thing sellers within these markets need to do is partner with a real estate advisor from a truly global brand. Backed by a reputable brand that is recognised across the globe such as RE/MAX, sellers are allowed the opportunity to reach luxury buyers across borders in a way they would never be able to do on their own,” Goslett advises.
“Secondly, sellers will need to highlight the appeal of their suburb as well as their home. Sellers need to remember that buyers are not only purchasing the property, but they’re purchasing the location as well. As an international buyer, the location is entirely unknown to him/her. When marketing the property abroad, it is therefore advisable to include links to interesting things to do in and around the area or to share video clips that highlight the appeal of that suburb.”
Finally, Goslett highlights the importance of investment value when marketing luxury homes to foreign buyers. “International buyers are purchasing homes outside of their own country for one of three reasons: either they are planning to immigrate, they are purchasing a holiday home, or they are looking for an investment opportunity. It would therefore increase the appeal of the property if your real estate professional knows the average house price growth in your area which he/she can mention as a selling point when marketing your home,” Goslett concludes.
Even in this modern age of interconnectivity, appealing to international audiences is sometimes easier imagined than achieved. If you are unsure of how to market your home abroad, reach out to a real estate professional and ask for some free advice.