Rising property trend among wealthy in SA, apartment living
The 2023 Wealth Report said when it came to price growth, luxury apartments have been the best-performing residential property segment in the country over the past decade.
ZambeziShark
• The 2023 Wealth Report says apartment living is on the rise for the wealthy in South Africa.
• Johannesburg and Cape Town have the top luxury apartments in the country, but Umhlanga, Plettenberg Bay and Hermanus are also on their way up.
South Africa is home to almost twice as many high-net-worth individuals as any other country on the African continent, according to a new wealth report, and there is an interesting trend on the rise where they are increasingly investing in luxury apartments. The 2023 Wealth Report said when it came to price growth, luxury apartments have been the best-performing residential property segment in the country over the past decade as buyers move away from standalone houses.
The report by Henley & Partners and New World Wealth added this trend could possibly be linked to the safety and security offered by apartment complexes, potentially lower municipal rates and how much easier it was to maintain an apartment versus a house.
Johannesburg and Cape Town have the top luxury apartments in the country, while Umhlanga, Plettenberg Bay and Hermanus are towns that are on the up and up in this regard.
Here are some of the most notable ones:
Some of SA`s top luxury apartment complexes.
Towns on the rise
The report also highlighted Plettenberg Bay, Hermanus, Keurboomstrand, and Nature`s Valley (all in the Western Cape) as the country`s up-and-coming `wealth hubs`.
`After Johannesburg and Cape Town, [Plettenberg Bay] is the top location in South Africa for ultra-luxe homes, with approximately 350 homes valued over $1 million [R17.8 million]; [it] has seen a big rise in permanent residents over the past few years, which has boosted its wealth,` it said, adding while Cape Town suburbs dominated, square metre prices in parts of Hermanus and Plettenberg Bay were starting to catch up.
Hermanus` rise is attributed to its increasing popularity as a retirement destination, while Nature`s Valley`s appeal as a relatively untouched natural gem has made it a key city for nature lovers with big pockets.
African billionaires leaving the continent
The report also revealed the continent`s millionaire population was estimated to grow by 42% in the next decade, with 37 800 dollar millionaires living in the country now.
On the flip side, several African-born billionaires have left the continent.
The report said:
Notably, there are 52 African-born billionaires globally, of whom only 23 still live on African soil.
`This is a significant concern as many billionaires are entrepreneurs and company founders who therefore have the ability to create significant employment in their host countries.`