select
|

Top richest suburbs in South Africa

A recent study conducted by Seeff has shown that despite junk status and economic pressures, properties in the Cape are still fetching excellent price tags.
 
Samuel Seeff said that the study was based on data from Lightstone and Propstats for the period 2011/2 to 2016/7, and it also reveals that Cape Town is now home to nine of the 10 richest suburbs in South Africa, up from seven two years ago.


 
The top suburb is Clifton with its average selling price of R23 million, the only suburb not situated in the Cape to make the list is the Sandton suburb of Sandhurst. Sandhurst is 4th with its average selling price of R16.5 million. 
 
Seeff said it has concluded a number of recent high value transactions on the Atlantic Seaboard including R54 million for three sales ranging to R27 million in Camps Bay, a single sale of R82 million in Fresnaye, a record sale of R32 million in Hout Bay and R34 million in Higgovale in the City Bowl.
 
Business Tech, who first reported on the story, said that Seeff pointed out that the decline in the rankings of the top-end Johannesburg and Sandton suburbs become even more pronounced in the R20 million-plus super luxury sector.
 
“High net-worth buyers are just not investing at the same levels in Sandton and even less in Pretoria East and, he says that the palatial homes there are still struggling to achieve the pace of sales and prices that the Atlantic Seaboard and City Bowl are achieving,” according to the report

The graphic below shows R20 million-plus residential transactions


| graphic via business tech
 
Lightstone data showed that for the Joburg/Sandton area, an average of 6-7 residential transactions priced above R20 million were recorded annually between 2010 and 2015.
 
Comparatively, 20-50 transactions were recorded for the Cape in the 2010-2014 period, rising to 67 last year; three times more compared to Joburg, Sandton and Pretoria East.
 
By early June this year, there had already been 44 transactions above R20 million generating over R1.1 billion in revenue. Incidentally, 30% of these were to Joburg buyers, a handful from KZN and only a few foreign sales (mostly UK and German buyers), the latter being less than 10%, and, said Seeff, far less than commonly perceived.
 
Where prices have comfortably reached the R100 million-R200 million-plus price levels on the Atlantic Seaboard, Pretoria East has only had a single sale of R45 million (Waterkloof, 2014) and R66 million in Sandton (Empire Place, Sandhurst, 2016).
 
Seeff said that he would have expected the figures to have been reversed, i.e. Joburg/Sandton achieving more sales and much higher prices considering Sandton’s status as the wealth capital of the continent.
 
The Atlantic Seaboard average selling prices (full title) have more than doubled over the last five years (since 2011/2012), added Lance Cohen, Seeff’s luxury market specialist for the Atlantic Seaboard. The biggest gains have been in Fresnaye (+167%) and Camps Bay (+128%), the latter attracting the highest number of R20 million-plus sales since.
 
Where only Clifton topped the R15 million ave price mark, there are now seven (7) Cape suburbs above this range while Clifton now tops R20 million for full title property, said Cohen. Top end luxury properties and locations can now range to R185 million-R300 million.
 



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK