Hot demand for luxury property in South Africa – this is what you can get for R4 million-plus

 ·10 Feb 2024

Despite the challenging economic environment, South Africans are still looking for opportunities in the property market, with indications that overall spending in the sector is set to increase this year.

According to the latest oobarometer, the average purchase price in South Africa dropped to R1,411,434 in Q4 2023 – which is a drop of 0.8% and 0.9% from Q4 ‘22 and Q3 ‘23, respectively.

The average approved bond increased by 1.2% from Q3 ’23 to R1,301,395, while the average deposit dropped by 9.3% year-on-year to R110,039 or 7.8% of the average purchase price.

Although the average purchase price decreased in the final quarter of last year, there has been a marked shift in the price band of R3 million-plus in Q4 ‘23 among non-first-time homebuyers.

“Despite the climate, there is sustained and robust demand for luxury homes of R3 million or more – now accounting for more than one-third of the properties purchased,” Rhys Dyer, CEO of ooba Group, said.

The luxury property price band was matched by properties in the R1.5 million to R3 million category, which was also at 36% for non-first-time homebuyers.

Source: ooba

“However, as the Reserve Bank begins its anticipated rate cuts in 2024, we expect the R3 million-plus price bracket to surpass the R1.5 million to R3 million price band among non-first-time homebuyers,” Dyer said.

It should be noted that first-time homebuyers are still far from the luxury price band, with the most active in the R750,000 to R1.5 million price band. 

“While there has been a marginal shift upwards in the average price paid by first-time homebuyers, the R750,000 to R1.5 million price band continues to account for the bulk of sales.”

Below are several luxury properties currently on the market in South Africa.

  • 5 Bedroom House in Waterkloof Ridge, Pretoria
  • Price: R6,850,000

  • 4 Bedroom House for Sale in Oak Park, Pietermaritzburg
  • Price: R4,850,000

  • 3 Bedroom Townhouse in Nooitgedacht Village, Stellenbosch
  • Price: R3,595,000

Read: Good news for complexes and sectional titles in South Africa

Show comments
Subscribe to our daily newsletter