Camps Bay in Cape Town is home to the most properties with a value exceeding US$2 million in South Africa, with 155 – followed by Knysna on the Garden Route, with 133 properties, and Sandhurt, in Johannesburg, with 127.
This is according to a report by consultation firm, New World Wealth (NWW).
According to NW Wealth research, the price of prime property in Cape Town (Bantry Bay, Clifton) is valued at US$6,500 per square meter in 2013, whilst prime Johannesburg (Sandton) property in valued at US$2,400 per square meter.
Millionaire dollar homes by suburb
Residential prime property indices
The square meter prices of selected top end international cities are listed below as a further reference. As reflected, prime property in the Cape Town is almost 10 times cheaper than in London.
Second homes market
The second-homes market in South Africa is concentrated in the Western Cape and in certain parts of the Eastern Cape and Kwazulu Natal, NWW points out.
For luxury second-home buyers, the garden route (between Cape Town and Plettenberg Bay) has become the top destination over the past decade.
These top-end buyers generally come from abroad or from Johannesburg and Cape Town. Based on NW Wealth tracking estimates the top five luxury second-home locations in South Africa are Knysna, Plettenberg Bay, Hermanus, Stellenbosch and Umhlanga, the consulting firm says.
Notably, foreign buyers made up 4% of total local residential property buyers in 2013 compared to 7% in 2007.
UK citizens made up the largest foreign share of the market in 2013, although their share has fallen between 2007 and 2013.
The most interesting trend, NWW points out, has been the large rise in the number of buyers from the rest of Africa, which rose from 7% of foreign buyers in 2007 to 19% in 2013. This figure is expected to reach 30% by 2017.
HNWIs with homes abroad
High net-worth individuals (HNWIs) in South Africa decreased their property holdings over the review period, from 26% of total assets in 2007 to 20% in 2013.
NWW research shows that 22% of South African HNWIs had second homes abroad in 2013, which is below the global HNWI average of approximately 30%.
This difference reflects the impact of exchange controls which make it difficult for South Africans to move money out of the country.
According to NW figures, over 50% of the HNWIs with homes abroad are individuals who emigrated during the 1980s and 1990s but have since returned.