A report released in February 2006 by a committee set up by the Department of Agriculture & Land Affairs recommending a moratorium on the sale of land to foreigners was widely slammed as heavy-handed and ill-conceived.

And although Government later rejected those recommendations, talk of limiting foreign ownership in some form or another was never entirely dismissed. Transnet's sale of Cape Town's V&A Waterfront to a consortium led by British-based London & Regional for R7bn in September 2006 prompted new questions regarding whether Government was for or against foreign property ownership.

At the time, industry commentators said Government was sending out contradictory and confusing messages: while Government continued to raise concerns about the level of foreign participation in SA's property market it had no qualms about giving away one of SA's crown jewels to a foreign developer.

However, FNB property strategist John Loos says the fact that foreign appetite for SA property is stronger than ever suggests that nobody seriously expects Government to introduce draconian land measures. Says Loos: "Government has over the past decade proved that it favours investor-friendly policies. So despite statements from time to time about limiting foreign ownership, Government's actual track record speaks for itself."

However, Loos agrees with other industry players that it's high time that Government sent a clear signal about where it stands on the issue of land ownership by foreigners.