According to the recently published Africa Wealth report for 2022 by New World Wealth, Johannesburg remains Africa’s wealthiest city with total private wealth amounting to $239 billion and most of the city’s HNWI wealth is now concentrated in just three suburbs.
SEE: These are the wealthiest cities in South Africa for 2022
Last year, there were four suburbs on this prestigious list, says Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, however, although Sandhurst, Hyde Park, and Westcliff have retained their spot, Houghton doesn’t feature this year.
He adds that despite this slip and the prevailing political and economic climate, it’s encouraging to note that the city’s total private wealth has increased from $235 billion in 2021 to $239billion and that luxury real estate remains a popular investment choice.
READ: Joburg’s wealth is largely concentrated in these 4 exclusive suburbs
Sandhurst
Citing Lightstone data, Odendaal says in 2020, the median house price in this exclusive suburb actually increased to R13 million from R11.25 million the year before and, although it dipped to R10.65 million last year, it has since spiked to R16.2 million.
“Last year, 65% of existing owners were aged 50 or older and 45% of recent buyers were under the age of 50, although the majority of stable owners are still in the 50 plus age group, a whopping 71% of recent buyers during the past year were 49 and younger.
“This is a clear indication of how the buyer demographic has been changing in recent years and it’s now very representative of South Africa’s current top wealth profile with more of our political heavyweights, business entrepreneurs, and captains of the industry choosing to live in Sandhurst.”
Sandhurst has currently *15 new property listings, according to Property24 Trends Data, with the average asking price being R7.225 million vs the average selling price of R10.35 million.
The average sale price per erf for 2021 was about R11.3 million, while Section Scheme Units average sale price for the same period is R3.25 million.
The latest residential listings on Property24 show that two-bedroom homes are most widely available, at an average list price of R1 939 500.
22.2% of the sellers are older than 49 years old, while 75% of buyers are younger than 49 years old.
Click here to see all the sale and listing price trends in Sandhurst
Westcliff
“After a slight dip in 2020, the median house price in one of Johannesburg’s oldest and most established residential suburbs has been on a steady upward trajectory, jumping from R7.8 million to R9.7 million in 2021 and again to R10.5 million this year.”
Odendaal adds that the average investor age in this exclusive node is a little older, with none of the recent buyers during the past 12 months being younger than 35 and 75% of existing residents being 50 or older.
Characterised by stately mansions and sprawling gardens, Westcliff offers some of the city’s most distinguished properties and has the added benefit of being in close proximity to major arterial roads and Johannesburg’s CBD.
Westcliff has currently *4 new property listings, according to Property24 Trends Data, with the average asking price being R6.7 million vs the average selling price of R10.5 million.
The average sale price per erf for 2021 was about R9.4 million, while Section Scheme Units average sale price for the same period is R1.66 million.
The latest residential listings on Property24 show that five-plus bedroom homes are most widely available, at an average list price of R12.6 million.
30% of the sellers are older than 49 years old, while 64.2% of buyers are younger than 49 years old.
Click here to see all the sale and listing price trends in Westcliff
Hyde Park
Once also predominantly freehold, Hyde Park which now has a far broader property landscape that includes more mid-level housing of which 52% is sectional title, remains one of the most sought-after addresses in the city.
“As a result, the market in this sought-after suburb is more closely tied to prevailing economic trends.”
In 2020, the median house price dropped from R8.75 million to R8 million, rising again to R8.8 million last year, largely due to pent-up demand but this year it has dropped to just R6 million even though sales volumes have increased with 31 property reservations to date compared to 26 last year.
“That said, 13 of the houses which changed hands during the past year, did so at an average sale price of R11.885 million, placing the trendy suburb firmly in the wealth bracket.”
Odendaal says that despite the current doom and gloom, exacerbated by the country’s energy woes, South Africa is also home to the largest luxury market in Africa by revenue, and real estate remains one of the most popular commodities and investments among the super-rich.
Westcliff currently has *60 new property listings, according to Property24 Trends Data, with the average asking price being R4 967 500 million vs the average selling price of R2 817 915 million.
The average sale price per erf for 2021 was about R2.525 million, while Section Scheme Units average sale price for the same period is R9.3 million.
The latest residential listings on Property24 show that two-bedroom homes are most widely available, at an average list price of R12.6 million.
24.6% of the sellers are older than 49 years old, while 55.4% of buyers are younger than 49 years old.
Click here to see all the sale and listing price trends in Hyde Park
And, with Johannesburg being home to 16 000 HNWIs, 34 centi-millionaires (R1.5 billion+), and two-dollar billionaires (R15.7 billion+) these exclusive suburbs will continue to hold appeal and retain their value.
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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.