Trophy home sales surge as super-luxury market catches fire

South African trophy properties worth R20m or R30m or more are selling like hotcakes at the moment, with the renewed enthusiasm for luxury property that has been evident since late last year having spread now to the super-luxury sector.
That’s the word from Lew Geffen, chairman of Sotheby’s International realty in SA, who says the group’s Atlantic Seaboard and Johannesburg operations, for example, have sold more than R250m worth of ultra-high end homes in the past three months – some of them in areas where such sales had not been evident for years.

4 Bedroom House for sale in Morningside, Sandton
The homes sold include several super-luxury apartments in Bantry Bay, ranging in price from R23m to R35m, he says, as well as a R27m property on the V&A Waterfront, a R30m mansion in Sandton’s Morningside Manor and a string of executive homes in Houghton, Illovo, Sandhurst and Westcliff.
Other real estate groups involved in this market have reported a similar trend recently and, he says, such purchases are extremely important in the wider sense because the rest of the property market often takes its cue – and its confidence – from high net worth individuals (HNWIs) who are perceived to be “in the know” about property trends.
One factor behind the recent surge in sales at the very top end of the market, Geffen says, is the large number of luxury house sales that have been finalised in recent months, “which has freed the sellers of these properties to upgrade further as they act on their belief that the market has passed the bottom and now has nowhere to go but up.

4 Bedroom House for sale in Bantry Bay, Cape Town
“In other words, there are more potential buyers in the market for super-luxury properties, and they have ‘cash in hand’. At the same time, we have seen a new pricing realism among serious sellers that has encouraged those buyers to make offers and finalise transactions.”
In doing so, Geffen says, the buyers of ultra-high end properties in SA are also following a global trend. “Sotheby’s International Realty offices worldwide have seen HNWIs favour increased investment in property for the past two years. “At the start of this period, most of these investors were really just looking for a ‘safe haven’ for their assets while they waited for the world economy to improve. But now they are hurriedly buying even more bricks and mortar in order not to miss out on the gains they foresee as real estate markets all over the world start to trend upwards again.”
And in this regard, he notes, SA has been helped lately by the relative weakness of the rand, which makes local property relatively inexpensive for those buying in dollars, pounds or euros. “However, it must be said that the huge majority of recent buyers in the local super-luxury sector have actually been South African HNWIs who are confident about their future here, as well as investors from other African countries who see the country growing in stature and prosperity as it fulfils its role as a gateway to Africa.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us