President Thabo Mbeki has ordered a probe into rising land prices, fearing that the entrance of wealthy foreigners onto the local property market has fuelled soaring property prices and put land out of reach of millions of South Africans.

But government spokesman Themba Maseko said a statement on Thursday in which he said the government was considering curbing the sale of prime coastal land to foreigners was incorrect.

This would have been the first step South Africa took to block non-residents from buying its real estate.

"There will be no ban on foreign ownership," Maseko said. "It was entirely my mistake."

Land is a thorny issue in South Africa, where more than a decade after the end of apartheid whites still enjoy ownership of most of the country's land.