South Africans still enjoy an exceptionally high standard of living in property terms compared with their European counterparts, notwithstanding the fact that values have virtually doubled in recent years.

Gerhard Kotzé, CEO of the ERA South Africa property group says a recent visit to Switzerland was an eye opener in this respect.

“Naturally we are all aware in this country that our property prices offer good value particularly in terms of hard currencies such as the Swiss Franc and Sterling. Nonetheless it was striking to see the differences and the advantages we enjoy in this part of the world in property terms compared with the standard of living in Switzerland.

“Leaving aside for the moment the beauty of the country, security issues and of course the traditional Swiss efficiency, the fact is that their properties are extremely expensive and typically very small.

“The chocolate box pictures one sees show large chalets dotted on green mountainsides. In reality those properties are typically home to two or three families. Also properties of no more than 40 square metres are common and a ‘large’ property is in the region of 70 square metres to 80 square metres, which is small to us in South Africa.”

Kotzé says there are also huge differentials in price. “My research showed that an older property would sell for around CF10 000 per square metre. So for example a 40 square metre property, which is essentially no larger than a bedsit, would cost some CF400 000 - the equivalent of nearly R2.5-million at the current exchange rate. A newer property would sell for an average of CF480 000 or nearly R3-million.

“Obviously prices vary from area to area as they do in any country and so does the percentage of ownership of property. In a major city such as Zurich for example, most people rent and only five percent of the properties are privately owned, the majority being in the hands of wealthy individuals, insurance companies and the council.

“Also interesting is the fact that, in a resort town such as Engelberg, there are quite a number of South African owners, which underlines the fact that the top echelon in this country still earns extremely well, even in international terms.”