“This week’s opposition by ANC MPs to the foreign land ownership report highlights the urgent need for government and the private sector to come together and think very carefully about the implications of these proposals,” says Neil Gopal, CEO of SAPOA.

As the voice of the commercial and industrial property industry in SA, SAPOA has for some time been advocating that foreign land ownership limitations would in all likelihood be detrimental to the economy.

“Foreign ownership of land in SA is in fact negligible,” says Gopal. “But this whole debate fosters uncertainty and caution on the part of international investors.”

Restricting foreign land ownership could potentially backfire, he adds, causing a negative impact on investor confidence that would far outweigh any potential benefits to SA.

Furthermore, SAPOA believes that singling out any specific types of investors - or types of properties, for that matter - would pose a serious threat to investment in SA.

“Appropriate land policy should apply equally to both SA and foreign investors,” says SAPOA director and Wits University professor Francois Viruly.

“Such land policy would strike a balance between an enabling property investment environment and the achievement of SA’s socio-economic objectives.”

SAPOA intends to continue to play an active and vocal role in taking the foreign land ownership debate forward to ensure that the interests of the property industry are protected.

“These proposals affect all sectors of the property market – direct investment, listed property, as well as both residential and commercial property,” says Gopal.