More positive outlook for SA luxury homes market

The forecast by Credit Suisse that the number of dollar millionaires in South Africa will grow almost threefold over the next five years, from 71 000 to nearly a quarter of a million, reinforces the groundswell of renewed confidence in the future of the country’s luxury residential property sector says Ronald Ennik, a specialist marketer of high priced homes in Gauteng.

Ronald is the CEO of Johannesburg-based Ennik Estates, an affiliate of the Christie’s International Real Estate organisation, whose operations cover more than 40 countries and generate US$100-billion a year in top end home sales.

“As the net worth of these budding new South African millionaires rises, they will become increasingly more active as buyers and sellers of luxury homes – in a sector in which the persistent wide  gap in buy/sell price aspirations is now steadily closing in line with the realities of the post-recession market,” says Ronald.

“Another important factor is the increasing potential for foreign investment into Africa – and not least into the South African property sector – in a climate of anticipated low  growth forecasts in the debt-burdened US and euro zone for the next five years.

“Meanwhile, already firmly entrenched in our luxury homes market is a core of
116 000 people in South Africa who, according to the Credit Suisse Wealth Report, are in the top 1% of people who alone account for 44% of global assets,” says Ronald.

“Taking all these factors into account, the overall outlook for growth in the luxury homes market in South Africa is becoming more and more encouraging,” he concludes.

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  • Martin Dudler - posted 06 Dec 2011 01:56 PM                                    

    Well done Credit-Suisse,... we know long ago

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