New World Wealth has published its annual wealthy cities review, revealing which countries and cities in the world are home to the highest net worth individuals – including South Africa.
The report focuses on high net worth individuals (HNWIs) with a wealth of $1 million (R14.52 million) or more. Total wealth refers to the private wealth held by all the individuals living in each country. It includes all their assets – including property, cash, equities, business interests – less liabilities.
Johannesburg was found to be the wealthiest city in Africa, with total wealth in the city now amounting to $235 billion. Major sectors in the city include financial services, such as banks, and professional services such as law firms, and consultancies.
However, most of this HNWI wealth is concentrated in just a few select suburbs, including:
- Hyde Park
Cape Town was named the second richest city in Africa with a total wealth of $130 billion. New World Wealth said that most of this wealth is concentrated in the following suburbs:
- Bantry Bay
- Camps Bay
Cape Town is also home to a number of top-end lifestyle estates including Steenberg, Atlantic Beach and Silverhurst Estate. Major sectors in the city include real estate and fund management, the group said.
Most expensive suburbs
When looking at property sales, data published by real estate agency Seeff Property Group in July shows that almost all of the country’s most expensive sunburns are in the Western Cape.
The list – which was compiled from deeds office and sales data – includes eight Cape Town suburbs; six on the Atlantic Seaboard and two in the Southern Suburbs.
By comparison, just two suburbs outside of the Western Cape feature – one in Sandton and one in Johannesburg.
Ten years ago, there were just four top suburbs with an average selling price of just over R10 million. The group said that all ten of South Africa’s top suburbs now fall above this, with average prices ranging from R12 million to over R20 million.
|Suburb||Average price||% increase over the last 10 years|
|Bantry Bay||R15 million||+114%|
|Camps Bay||R14 million||+133%|
|Constantia Upper||R14 million||+100%|
|Hyde Park||R13 million||+117%|
Research published by the South African Centre for Inequality Studies and the World Inequality Lab in August shows that among South Africa’s adult population of approximately 35.4 million people, the average wealth held in a personal capacity is R326,000.
However, among the top 10%, this average shoots up to R2.79 million per person. This is concentrated even further in the top 1% at R17.8 million per person, and the top 0.01% at R486.2 million.
The researchers also included a wealth threshold across the different population groups, indicating the lowest point at which one would enter into any given category.
To enter into the top 10%, you would need a personal wealth of only R496,000. To be a one-percenter, your personal wealth would need to be just over R3.8 million.