South Africa is seeing an increase in apartment living for the uber-wealthy, with areas in the Western Cape seeing significant growth.
According to the African Wealth Report for 2023, luxury apartments have been the best-performing residential segment in South Africa regarding price growth as many buyers move away from their houses.
The report, compiled by Henley & Partners and New World Wealth, stated that Hermanus, Plettenberg Bay, and Umhlanga apartments had done well over the last decade.
The report listed three possible reasons for the growth of apartment living:
- Running costs – including municipal rates – are usually lower than in apartments compared to houses.
- Safety – apartments offer improved safety and security. Apartments usually only have one access point, making them safer. Apartment buildings also often have security guards at the entrance.
- Maintenance – apartments are usually smaller, making them easier to maintain than houses.
Some of the top apartment complexes in South Africa include:
- The Oysters – Umhlanga
- V&A Marina Apartments – Waterfront, Cape Town
- Eventide – Clifton, Cape Town
- San Michele – Clifton, Cape Town
- Melrose Arch – Sandton, Johanneburg
- The Houghton – Houghton, Johannesburg
- The Bantry – Bantry Bay, Cape Town
- The Water Club – Mouille Point Cape Town
- The Hermanus – Eastcliff, Hermanus
- De Meermin – Plettenberg Bay
Five of the top apartment complexes for the wealthy are found within Cape Town, which aligns with the fact that most of South Africa’s prime suburbs are in Western Cape City.
The report said that over 40% of South Africa’s homes valued at over $1 million are found within Cape Town’s prime seven suburbs – Bantry Bay, Bishopscourt, Camps Bay, Clifton, Constantia, Fresnaye and Llandudno.
However, square meter prices in certain parts of Hermanus and Plettenberg Bay are catching up with Cape Town.
After Johannesburg and Cape Town, Plettenberg Bay is the top location for ultra-luxury homes in South Africa, with roughly 350 homes in the area costing over $1 million by December 2022.
The report said the area had seen a massive growth in permanent residents over the last few years.
Keurboomstrand, located close to Plettenberg Bay, is expected to see large-scale growth in the next decade.
Nature’s Valley – also on the Garden Route – is also popular with the uber-wealthy, with its lagoon and forest relatively untouched.
Hermanus is also seeing a rise in high-net-worth individuals and is an incredibly popular retirement destination.