South Africa’s richest streets and suburbs right now

Research group New World Wealth has published its latest report on South Africa’s prime residential prices, which were shown to be down in the first quarter of 2018.

As part of the group’s research, it looks at the price of property per square metre in prime property areas across the country.

It identified these three prime locations:

  • Altantic Seaboard, Cape Town (including Batrny Bay, Clifton, V&A, Fresnaye and Camps Bay)
  • Umhlanga; and
  • Central Sandton

According to New World Wealth, prime apartment prices in Cape Town have contracted from around R75,000 per square meter in Dec 2017 to around R72,000 per square meter currently (March 2018).

“This is probably due to the drought which has harmed the residential market there. CT also had a poor December/January holiday season with many travelers staying away from the city due to the drought – this would have negatively impacted on the number of potential buyers,” the group said.

Prime area ZAR per sqm 2017 ZAR per sqm 2018 200 sqm Apartment Price
Atlantic Seaboard, Cape Town 75 000 72 000 15 000 000
Umhlanga 36 000 37 000 7 200 000
Central Sandton 34 000 33 000 6 800 000

Prime apartment prices in Central Sandton are also down, from around R34,000 per square meter in Dec 2017 to around R33,000 per square meter currently.

The only prime spot of the three to buck the trend was Umhlanga, which saw prime apartment prices rise from around R36,000 per square meter in Dec 2017 to around R37,000 currently).

“This is possibly due to the fact that many foreigners and locals are now going on holiday to Natal instead of the Western Cape due to the CT drought impact. There is also an uptick in prices in surrounding areas such as Ballito, Zimbali, La Lucia and Zinkwazi,” the group said.

The most expensive streets in South Africa

Street Suburb, City 200 sqm Apartment Price (ZAR) ZAR per sqm
The Ridge & Cliff Road Clifton, Cape Town 19 000 000 95 000
Victoria Road Clifton and Bantry Bay, Cape Town 18 400 000 92 000
V&A Marina, Dock Road, City Bowl, Cape Town 18 000 000 90 000
Nettelton Road, Clifton Clifton, Cape Town 17 400 000 87 000
Clifton Road, Clifton, Cape Town 17 000 000 85 000
Kloof Road Clifton and Bantry Bay, Cape Town 16 800 000 84 000
Ave St Leon Bantry Bay, Cape Town 16 000 000 80 000
De Wet Road Bantry Bay, Cape Town 15 600 000 78 000
Ave Marina Bantry Bay, Cape Town 15 200 000 76 000
Ocean View Drive Bantry Bay, Cape Town 15 000 000 75 000

The two streets outside of Cape Town which ranked as the most expensive include Beachyhead Road, Plettenberg Bay (R8.6 million for a 200 sqm apartment, or R43,000 per sqm) and Lagoon Drive, Umhlanga (R7.2 million, or R36,000 per sqm).

Most expensive suburbs

Suburb 200 sqm Apartment Price (ZAR) ZAR per sqm
Clifton 16 400 000 82 000
Bantry Bay 15 200 000 76 000
Fresnaye 12 200 000 61 000
Camps Bay 11 200 000 56 000
Bakoven 11 200 000 56 000
Llandudno 10 800 000 54 000
Granger Bay 10 800 000 54 000
Mouille Point 10 400 000 52 000
Greenpoint 9 600 000 48 000
City Bowl in Cape Town 9 400 000 47 000
Three Anchor Bay 8 000 000 40 000
Umhlanga 7 200 000 36 000
Seapoint 7 000 000 35 000
Bishopscourt 7 000 000 35 000
Central Sandton 6 800 000 34 000
Constantia 6 400 000 32 000

New World Wealth noted that its indices work off a different basis from most other SA residential indices – where it tracks the average square meter prices achieved in selected prime 200 to 400 square apartment complexes in each area, which it believes is the best way to check for price movements.

The group focuses on the most exclusive apartment complexes in each area (i.e. Prime).

The four main ways used to check price growth in an area include:

  • Transaction indices – these are normally compiled by major banks. They are based on the total/average value of purchases that go through the bank during a period. In our view, these are the least accurate – they are often restated heavily over time.
  • Average sales price indices – also normally compiled by major banks. These indices can be distorted by big sales (i.e. the sale of a mansion) during a particular month/quarter.
  • Repeat sales indices – this index is very accurate but difficult to compile over a short period of time or in a small area as it requires multiples sales on the same property.
  • Square meter price growth – we use this one. By focusing on sales in certain apartment complexes one can get an idea on how square meter prices are changing. This does not require a large sample.

“Normally for an area such as Bantry Bay, tracking three to four prime apartment blocks can give one a very good indication of price movements. The only limitation of these indices is that they only work well on apartments as houses normally have gardens and additional land which is difficult to value on a square meter basis,” NWW said.


Read: What R2 million will buy you in popular suburbs in Joburg and Pretoria

Latest news

Partner Content

Show comments

Follow us

Recommended