New data from Lightstone Property shows how the super-wealthy property market – homes that sold for over R20 million – has performed over the past few years in South Africa.
A recent study by property group Seeff, using data from Lightstone and Propstats, found that nine of the 10 most expensive suburbs in the country were found in the Western Cape.
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. Palatial homes there are still struggling to achieve the pace of sales and prices that the Atlantic Seaboard and City Bowl are achieving, the group said.
This becomes more apparent when breaking down the data in this property sector over time.
Western Cape vs Gauteng vs KZN
Looking at Lightstone’s data for R20 million-plus properties sold between 2010 and 2017, it is clear that the Western Cape is consistently ranked as the top location for super wealthy property sales, with 264 sales over the period.
2016 was a bumper year for the province, with 63 sales at an average price of R27.1 million – though 2010 was drew the highest average over the period assessed, at R29.3 million for 19 sales.
However, 2017 may come out as an incredibly good year for house sales in this range, as the province has already seen 41 R20 million-plus transactions in 2017, and the year is only half-way through.
Gauteng, on the other hand, tracks far behind the Western Cape, with only 81 sales since 2010, while KZN has had only 11, and none so far in 2017.
Over the review period, Gauteng’s sales in 2014 currently holds the highest average price point, at R31.1 million across nine sales, the data showed.
This is due to two large sales in Bryanston and Waterkloof that year (R40 million and R45 million, respectively).
Average R20m+ home purchase price by province, 2009-2017
|2009||–||–||R25 000 000|
|2010||R29 304 894||R26 856 363||–|
|2011||R28 442 181||R27 359 166||R27 833 333|
|2012||R26 666 500||R24 547 500||R23 500 000|
|2013||R27 402 083||R26 052 880||–|
|2014||R26 790 154||R31 066 666||R24 500 000|
|2015||R27 440 978||R24 733 567||R30 500 000|
|2016||R27 136 880||R25 421 700||R22 000 000|
|2017||R23 777 860||R32 242 500||–|
However, high value transactions on the Atlantic Seaboard – including R54 million for three sales 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 – put the Western Cape in the lead with a wider distribution of super-rich neighbourhoods, the data showed.
The Western Cape had 36 different suburbs with R20 million-plus sales, while Gauteng had 30, and KZN had 4.
These are the top 10 suburbs for R20 million-plus house sales since 2010 – and the average sale price over the same period.
|Suburb||Sales (2010-2017)||Average price (all years)|
|Bantry Bay||49||R26 660 350|
|Fresnaye||33||R30 060 710|
|Clifton||28||R25 656 250|
|Bakoven||21||R26 545 830|
|Llandudno||20||R26 138 570|
|Camps Bay||16||R25 543 720|
|Bryanston||12||R28 450 940|
|Bishopscourt||12||R23 473 330|
|Hyde Park||11||R26 391 000|
|Sandhurst||11||R25 335 100|