Top 4 South African cities to buy into

Johannesburg tops the millionaire list with 23 400 millionaires at the end of 2012, followed by Cairo with 12 300 and Lagos with 9 800.

This five bedroom luxury home in Sandhurst, Johannesburg, is selling for R38 million through Seeff Sandton. Click here to view.

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Cape Town and Nairobi round out the top five and most notably, there are four South African cities in the top 10 including Cape Town, Durban and Pretoria, according to New World Wealth report.

Millionaires refer to individuals with net assets of US$1 million or more (excluding their primary residences).

Although Johannesburg is ranked number 10 in the Fastest growing cities for millionaires in 2012 to 2020 (3.4 percent and 30.6 millionaires in 2020), the city is ranked number one for Top 10 cities ranked by millionaires in 2020 with Cape Town (40), Durban (8) and Pretoria (10) also making the list.

All four cities remain in the Top 10 cities ranked by multi-millionaires 2012 with Johannesburg leading the pack, explains Andrew Amoils, senior analyst at New World Wealth.

He says multi-millionaires are individuals with over US$30 million each, also referred to as ultra high net worth individuals.

Africa: Top 10 cities ranked by millionaires 2020

Source: NW-Weath.com

To find out the average selling prices and trends of each of the four cities, click here.

Johannesburg

According to WealthInsight, Johannesburg is home to 261 ultra high net worth individuals (UHNWIs) with wealth of US$30 million or more, including equities, bonds, cash and deposits, fixed-income products, real estate, alternative assets and business interests.

Read about Johannesburg’s luxury home locations.  

WealthInsight notes that the majority of these individuals own homes in the top three suburbs with Sandhurst (36) taking the lead followed by Bryanston (31), Hyde Park (26), Westcliff (20), Houghton (15), Parktown (15), Dainfern (10), Atholl (5) and other (103).

Africa: Fastest growing cities for millionaires 2012- 2020

Source: NW-Wealth.com (Note - includes cities with over 800 millionaires in 2012)

Estate agents operating in the area say homes in Sandton are sough after because of the location and the commercial developments taking place and fueling demand for homes.

One such home in the leafy suburb of Sandhurst is on the market for R38 million.

Seeff Sandton says Sandhurst offers exclusive residences on most of its streets, each with its share of high net-worth individuals and one can easily buy a luxury home priced from R15 million.

The five bedroom home is entered via a long driveway, which curves around a pond and fountain feature, to the porte-cochère and front entrance.

Its formal lounge, dining room and family rooms all flow on to the huge formal entertainment area, and the family room also opens on to a second, casual, covered patio, which has access to the country-style kitchen, and has easy access to the floodlit tennis court.

Pam Golding Properties sold a luxurious penthouse apartment in The President in Bantry Bay in Cape Town for R34.5 million – the highest price achieved for a sectional title unit in this suburb in the past five years.

A study, or bedroom, with bathroom en suite, completes the picture downstairs.

There are four garages, double staff quarters, a borehole with water tanks and superb security.

Cape Town

New World Wealth ranks Cape Town as number four in the Top 10 cities ranked by millionaires in 2020.

Although the city doesn’t make it into the 10 fastest growing cities for millionaires between 2012 and 2020, luxury homes continue to sell and quite fast to buyers with cash and looking for lifestyle that some locations offer.

Pam Golding Properties (PGP) recently sold a penthouse apartment in Bantry Bay for R34.5 million – the highest price achieved for a sectional title unit in this suburb in the past five years. 

The 653 square metre penthouse in the iconic building “The President” was bought by a resident of Bermuda, for holiday use, explains PGP area manager for the Atlantic Seaboard and City Bowl, Basil Moraitis.

According to Moraitis, the apartment sold within two months of listing and the price achieved reflects a value of close to R53 000 per square metre, which is in line with the levels being achieved prior to the onset of the global economic crisis. 

Properties in this building have seen steady price growth of R5 000 to R10 000 per square metre in the first five years (the early 1990s) to R40 000 per square metre in the boom period of 2006.

Furthermore, the agency says between March to July this year, there has been an increase of foreigners buying trophy properties on the Atlantic Seaboard. 

“This renewed interest confirms the value of our prime coastal property, and particularly those positioned right on the water’s edge,” say the agents.

Located in a private nature reserve with a variety of wildlife, this six bedroom home in Montana, Pretoria, is selling for R9 520 million through Pam Golding Properties Pretoria North. Click here to view

What’s more, they say in the case of this particular penthouse, the lifestyle offering was on a par with the very best apartments one might find in London or New York.

Durban

According to New World Wealth, Durban is ranked number 6 in the Top 10 cities ranked by millionaires 2012 and the city sits at number 8 in the 10 fastest growing cities for millionaires 2012 to 2020 followed by Pretoria and Johannesburg.

Durban, according to the report will have a growth rate (of millionaires) of 3.7 percent per annum.

Carol Reynolds, PGP area principal in Durban, Durban North and La Lucia, says currently, they are seeing demand for homes priced between R500 000 to R3 million and these also tend to sell within the first week of listing.

Sought-after suburbs such as Morningside, Glenwood, Berea, Durban North and La Lucia are active in the under R3 million price band.

In central Durban North, homes are selling within three to five days of listing if they are correctly priced.

“Over-priced stock is not selling across the board, so despite the reactivation of buyer interest in the residential market, informed buyers know when they are paying too much and they are astute enough to avoid over-paying for property,” she points out.

Pretoria

According to New World Wealth, Pretoria is ranked number 10 in the Top 10 cities ranked by millionaires and in 2012 the city had 31 multi-millionaires compared to 285 in Johannesburg, 110 in Cape Town and 33 in Durban.

This three bedroom apartment in Berea, Durban, is selling for R1 380 million. Click here to view.

In 2012 to 2020, this will be the 9^th fastest growing city for millionaires with a growth rate of 3.5 percent while Johannesburg will grow by 3.4 percent per annum.

Retha Schutte, PGP Pretoria regional executive, notes that property developers are rediscovering historic neighbourhoods in the ‘old Pretoria East’ including Waterkloof, Brooklyn, Muckleneuk and Lynnwood where they are finding a fair amount of interest in well appointed old character homes.

These homes all tend to be situated in the older, more central parts of Pretoria and developers buy these and refurbish them for the diplomatic rental market.

Homes can fetch rentals of up to R40 000 per month

The old suburb of Muckleneuk offers a lifestyle that is hard to replicate, which accounts for its increasing popularity, in addition, it is close to the city centre, she says.

Located close to the new Gautrain station as well as the N14 and R21 highways, it is only 20 minutes from Gauteng’s business hub of Sandton, she says.

Furthermore, Schutte says some developers cater for gated secure estates for corporate rentals which are highly sought after in areas such as Midrand, Centurion, Irene and Pretoria, while properties in estates such as Silver Lakes, Midstream and Cornwall Hill Country Estate offer excellent returns for developers who have an understanding of the corporate market and the need to develop strategically in order to ensure long-term rental success. – Denise Mhlanga