R20m homes on the up in SA

Johannesburg - If you have an extra R20 million lying around, you can join South Africa’s elite group of homeowners.

A report by New World Wealth has shown that the number of R20m homes increased in the past year.

New World Wealth, which provides information on the global wealth sector, focuses especially on Africa and the Middle East.

The report shows that compared to last year, when the country had 2 100 such houses, there are now 2 230.

Camps Bay and other Cape Town areas such as Clifton and Bishopscourt are at the top of the list when it comes to people buying prime real estate, and Joburg’s Sandhurst and Hyde Park are not far behind.

“Cape Town’s Atlantic seaboard suburbs dominate the list, along with Sandhurst and Hyde Park.

“Holiday hotspots such as Plettenberg Bay and Knysna also feature prominently,” said New World Wealth analyst Andrew Amoils.

“It is also interesting to note that a large percentage (more than 25 percent) of R20m homes are on secure estates, either golf estates or lifestyle estates. In particular, Zimbali and Pezula are prime estates for such homes.”

Cape Town has 813 R20m homes, compared to last year’s 775, while Joburg has dropped from 550 to 538. Durban has grown from 160 to 185.

Most buyers paid cash.

Lisa Bathurst, the managing director of buyers’ agents Hurst & Wills, said: “Most sales have been cash, both by locals and foreigners, which shows confidence in the property market, despite the weak rand. In fact, foreigners splash out more because of it.

“That, combined with the total property investment increase from R712m last year to R1.2bn this year, is incredible. I have seen in the past year a clear move towards status, brands and unashamed wealth, and this transcends into property purchases.”

A new wave of foreign buyers was evident.

“There is also a steady supply of overseas investors, not just from Europe, as in the past, but a new wave of buyers from the continent, including Nigeria and Angola,” Bathurst said.

“And they only want the crème de la crème; lifestyle properties with the finest views and international standards of design and build. Famous names in design and architecture certainly help to seal the deals.”

And renting one of the multimillion-rand mansions doesn’t come cheap either.

Bathurst said: “If they haven’t bought already, many of these potential buyers are paying extortionate day rates to rent prime real estate; R100 000 a day is not unheard of in the holiday season, and R20 000 a day is a good deal.”

lerato.mbangeni@inl.co.za

The Star

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