How much you need to earn to live in the most exclusive estates in South Africa
The latest African Wealth Report, notes that millionaires are choosing to live in several exclusive estates in South Africa, and you’ll have to earn at least 780,000 a year to live in one of them.
The latest African Wealth Report 2024 by Henley & Partners and New World Wealth shows several high-net-worth individual (HNWI) hotspots in South Africa.
Johannesburg has the most HNWIs on the continent, with 12,300.
“Johannesburg is home to the Johannesburg Stock Exchange, the largest stock exchange in Africa by some margin and one of the world’s top 20 exchanges,” said Henley & Partners and New World Wealth.
Many millionaires are based around Sandton or in the “old money” suburb of Westcliff.
Cape Town comes in second with 7,400 HNWIS. The Cape Winelands, which includes the neighbouring towns of Paarl, Franschhoek, and Stellenbosch, has 3,600 HNWIs
Durban, Umhlanga, and Ballito follow with 3,500 HNWIs.
As part of the data, the report highlighted the increasing popularity of lifestyle eco-estates in these areas.
In fact, two South African estates were named in New World Wealth’s top ten lifestyle estates for 2023.
Steyn City in Gauteng and Val de Vie in the Western Cape are the two South African estates in New World’s Wealth’s list.
New World Wealth said estate living is rising globally, particularly among the wealthy.
It estimates that 50% of centi-millionaires – those with a net worth over $100 million – will either live or have second homes at lifestyle estates by 2050.
Within its wealth report for 2024, New World Wealth mentioned other estates that have gained popularity among the wealthy.
It noted luxury lifestyle estates, such as De Zalze and Domaine des Anges in the Western Cape are attracting HNWI buyers.
In Durban, these are eco-estates such as Zimbali, Simbithi, Izinga, and Brettenwood.
Pretoria also competes in the top 10 on the continent, with 2,100 HNWIs.
Affluent areas include Waterkloff and Waterkloof Ridge, as well as luxury estates, such as Silver Lakes, Mooikloof Equestrian Estate, and Woodhill Estate.
How much you need to earn
Richard Gray, CEO of Harcourts South Africa, advises that banks prefer lending to home buyers whose monthly bond cost is no more than 30% of their single or joint gross monthly income.
This 30% income threshold is a common measure of loan affordability for South African banks.
According to Gray, adhering to this guideline also helps home buyers maintain a balanced financial portfolio and allows for additional monthly payments to reduce the final cost of the home loan.
Considering this, BusinessTech estimated how much one needs to earn (single or household) to afford the minimum listing prices in these estates.
To calculate this, we used Absa’s bond calculator, assuming a 20-year home loan period at an interest rate of 11.75%.
The cheapest houses in the estates listed below will cost anywhere from R19,507 to R52,560 per month.
This requires a minimum salary or joint household income of R65,000 to R175,200 per month. This works out to an income of R780,000 to R2.2 million per annum.
Below, in no particular order, are some of the estates highlighted by the report. It includes the minimum listing price according to Property24’s data and the affordability of the cheapest properties in the estates.
Steyn City
- Minimum listing price: R2.45 million
- Minimum salary required: R88,503 per month
Steyn City is ideally located in Johannesburg’s new north, midway between Johannesburg, Pretoria and Midrand.
Acknowledged by New World Wealth as one of the top ten residential lifestyle estates globally, Steyn City seamlessly integrates convenience, safety, and luxury across 2000 acres of indigenous parkland.
According to property24 and the Deeds Office data, the average listing price of properties currently for sale in Steyn City ranges from R2.45 million to R22.24 million.
The average selling price in 2024 is R6.8 million.
Val de Vie Lifestyle Estate
- Minimum listing price: R4.85 million
- Minimum salary required: R175,200 per month
Val de Vie is situated in the Cape Winelands between Paarl and Franschhoek and is one of South Africa’s premier luxury lifestyle estates.
The estate boasts vineyards, polo fields, an equestrian centre, the highly-regarded Pearl Valley golf course, scenic natural fynbos, parks, lakes, and picturesque mountain views.
According to the latest listings, house prices range from R4.8 million for a one-bedroom apartment to over R23 million for a five-bedroom house.
However, there have been properties in the past that have sold for over R100 million.
De Zalze Winelands Golf Estate
- Minimum listing price: R3.95 million
- Minimum salary required: R142,686 per month
De Zalze Winelands Golf Estate is located on the eastern edge of Stellenbosch on the R44 in the direction of Somerset West.
Aligned to its residential market, the Estate operates a world-class Golf Course along with an internationally awarded working Wine Farm and Winery. This is complemented by restaurants, lodges and other state-of-the-art facilities.
According to the latest listings, house prices range from R3.95 million for a one-bedroom apartment to over R16 million for a five or more-bedroom house.
The average selling price is currently sitting at R13.69 million for 2024.
Zimbali Estate
- Minimum listing price: R2.50 million
- Minimum salary required: R90,310 per month
Zimbali Estate is situated along the KwaZulu Natal North Coast.
The estate offers a blend of residential properties, including upscale homes and villas, alongside world-class amenities such as a golf course, spas, restaurants, and recreational facilities.
It is renowned for its emphasis on privacy, security, and a harmonious living environment that integrates with nature.
According to Property24’s data, prices range from R2.50 million for sectional scheme units, while the top-tier five or more-bedroom houses reach an average of R14 million.
The average selling price on Property24 is currently around R11 million in 2024.
Simbithi Eco Estate
- Minimum listing price: R1.80 million
- Minimum salary required: R65,000 per month
Simbithi Eco Estate is an eco-friendly residential community located on the KwaZulu-Natal North Coast in South Africa.
Spanning over 430 hectares, it is designed to blend residential living with the natural environment, emphasizing sustainability and conservation.
The estate features a variety of homes, from apartments to luxurious houses, set amidst indigenous forests, wetlands, and grasslands.
According to the latest data, prices range from R1.8 million for sectional scheme units, while the top-tier five or more-bedroom houses reach an average of R11.24 million.
The average selling price on Property24 is currently around R6.4 million in 2024.
Silver Lakes Golf Estate
- Minimum listing price: R3.09 million
- Minimum salary required: R111,600 per month
Silver Lakes Golf Estate is an upscale residential and golfing community situated in Pretoria.
It is known for its signature 18-hole golf course, designed by Peter Matkovich, which is the centrepiece of the estate.
The estate combines luxurious living with recreational opportunities.
It offers a range of elegant homes, from townhouses to grand estates, set amidst manicured landscapes and serene lakes.
According to Property24’s data, prices range from R3.09 million for sectional scheme units, while the top-tier five or more-bedroom houses reach an average of R8.7 million.
The average selling price on Property24 is currently around R4.53 million in 2024.
Woodhill Estate
- Minimum listing price: R2.67 million
- Minimum salary required: R96,450 per month
Woodhill Estate and Country Club is situated in Pretoria, Gauteng.
It features a pristine Golf Course, a fine-dining restaurant, immaculate sporting facilities, and over 800 homes, all enclosed in a secure residential estate.
According to Property24’s data, prices range from R2.65 million for sectional scheme units, while the top-tier five or more-bedroom houses reach an average of R8.65 million.
The average selling price on Property24 is currently R5.9 million in 2024.
Read: R1,400 per month relief for homeowners in South Africa is coming
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