Estate agents are concerned that the damaged caused to South Africa's international image, as well as security fears inside the country caused by the spate of recent xenophobic attacks, could spell disaster for already struggling property sales.

A number of estate agents canvassed said there were negative implications for the property market, especially in those areas where xenophobic attacks had occurred.

Foreign buyers were also likely to have been put off by images of the recent violence in the country, although some estate agents believed the top end of the market would remain relatively unaffected.

Home Trust real estate owner Joe Cunningham said the fear that has gripped certain communities could be a "disaster" for the property business.

Cunningham said he was particularly concerned that sales at Home Trust's Atlantis estate could suffer due to concerns about the stability of the area in light of the fact that there was a large population of African immigrants in the neighbourhood.

However, he said the reduction of house prices due to a fearful climate would favour those still keen on buying property.

Marketing and financial director at Remax Jeanne van Jaarsveldt said xenophobic attacks "severely hurt" the township property market.

He said it was "unfair" to people wanting to settle in townships such as Soweto where there was good infrastructure and facilities.

Added to a housing shortage and rising inflation, Van Jaarsveldt said the xenophobic violence had left both buyers and sellers "in the middle of nowhere".

He said he did not think the xenophobic attacks would have much of an impact on foreign investors as they were more focused on the top end of the market and commercial properties which were detached from the conflict in lower priced areas.

But principle at Homenet Estates Jacques Coetzee said the negative image created in the minds of overseas clients could affect the market.

This was echoed by a City Bowl estate agent who declined to be named, who said the negative image sent out by the xenophobic violence sowed doubt among investors who were considering buying in South Africa. – Brenda Nkuna, West Cape News

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