These are the top 10 richest suburbs in South Africa

The economic pressures and junk status notwithstanding, properties in the Cape are still fetching excellent prices according to Samuel Seeff, chairman of the Seeff Property Group.

A study conducted by Seeff, based on data from Lightstone and Propstats for the period 2011/2 to 2016/7, also reveals that Cape Town is now home to nine of the 10 richest suburbs in South Africa, up from seven two years ago.

Clifton tops the list with an average selling price of R23 million. Only one Johannesburg/Sandton suburb, being Sandhurst ranks in the top ten at 4th place with an average selling price of R16.5 million, Seeff noted.

This is two places lower since late 2015, while Westcliff and Dunkeld have dropped off the top ten list altogether.

Seeff said it has concluded a number of recent high value transactions on the Atlantic Seaboard including R54 million for three sales ranging to R27 million in Camps Bay, a single sale of R82 million in Fresnaye, a record sale of R32 million in Hout Bay and R34 million in Higgovale in the City Bowl.

The top 10 suburbs 2011/2 vs 2016/7

Seeff pointed out that the decline in the rankings of the top-end Johannesburg and Sandton suburbs become even more pronounced in the R20 million-plus super luxury sector.

High net-worth buyers are just not investing at the same levels in Sandton and even less in Pretoria East and, he says that the palatial homes there are still struggling to achieve the pace of sales and prices that the Atlantic Seaboard and City Bowl are achieving, it said.

Lightstone data showed that for the Joburg/Sandton area, an average of 6-7 residential transactions priced above R20 million were recorded annually between 2010 and 2015.

This increased to 10 transactions over the last year. Only three Pretoria East residential transactions appear to have taken place since 2010.

Comparatively, 20-50 transactions were recorded for the Cape in the 2010-2014 period, rising to 67 last year; three times more compared to Joburg, Sandton and Pretoria East.

R20 million-plus residential transactions

By early June this year, there had already been 44 transactions above R20 million generating over R1.1 billion in revenue. Incidentally, 30% of these were to Joburg buyers, a handful from KZN and only a few foreign sales (mostly UK and German buyers), the latter being less than 10%, and, said Seeff, far less than commonly perceived.

Where prices have comfortably reached the R100 million-R200 million-plus price levels on the Atlantic Seaboard, Pretoria East has only had a single sale of R45 million (Waterkloof, 2014) and R66 million in Sandton (Empire Place, Sandhurst, 2016).

Seeff said that he would have expected the figures to have been reversed, i.e. Joburg/Sandton achieving more sales and much higher prices considering Sandton’s status as the wealth capital of the continent.

The Atlantic Seaboard average selling prices (full title) have more than doubled over the last five years (since 2011/2012), added Lance Cohen, Seeff’s luxury market specialist for the Atlantic Seaboard. The biggest gains have been in Fresnaye (+167%) and Camps Bay (+128%), the latter attracting the highest number of R20 million-plus sales since.

Where only Clifton topped the R15 million ave price mark, there are now seven (7) Cape suburbs above this range while Clifton now tops R20 million for full title property, said Cohen. Top end luxury properties and locations can now range to R185 million-R300 million.

Read: These are the top 10 most expensive suburbs to rent property in South Africa

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These are the top 10 richest suburbs in South Africa