New World Wealth and Henley & Partners have published their African Wealth report for 2022, detailing the spending and travel trends of South Africa’s wealthiest citizens.
The report focuses on high net worth individuals (HNWIs) with a wealth of $1 million (R15.70 million) or more. Total wealth refers to the private wealth held by all the individuals living in each country. It includes all their assets – property, cash, equities, business interests – less liabilities.
The data shows that the following South African towns and villages are becoming increasingly popular among HNWIs.
The fastest-growing South African town for HNWIs. A significant number of wealthy Cape Town, Pretoria and Johannesburg residents have relocated to Hermanus over the past decade.
Its low crime rate would explain its appeal. Affluent parts of Hermanus include Eastcliff, Voelklip, Kwaaiwater, Onrus and Fernkloof Estate, according to the report.
Paarl, Franschhoek and Stellenbosch
These three towns are in close proximity to each other. Combined, they form one of the fastest-growing areas in South Africa for HNWIs.
Notably, a large number of retired HNWIs have moved to these towns over the past decade. There are also several exclusive residential estates in this area that have attracted HNWIs, including Val de Vie, De Zalze and Domaine des Anges.
In addition, many of South Africa’s wealthiest families (especially centi-millionaires) own wine farms in this area.
Umhlanga and La Lucia
Umhlanga has been the top second-home hotspot for wealthy Johannesburg residents since the 1970s. Following the construction of the Gateway Theatre of Shopping mall in 2001, Umhlanga has become a major business hub in which wealthy residents live and work.
Apartments on Lagoon Drive in Umhlanga are some of the most exclusive in South Africa—notable top-end complexes in the area include the Oysters, the Bermudas and Edge of the Sea.
Ballito is a world leader in estate living and home to many top estates including Zimbali Coastal Estate, Simbithi Eco-Estate, Brettenwood Coastal Estate and Dunkirk Estate, according to the report.
Prince’s Grant Golf Estate is also in the vicinity (between Ballito and Zinkwazi). There are, in addition, a number of exclusive estates under construction.
Plettenberg Bay is a major HNWI hotspot on the Garden Route. After Johannesburg and Cape Town, it is the top location in South Africa for ultra luxury homes, with over 150 homes valued at over R20 million in the small town.
Beachyhead Drive is especially affluent. There are several top-end estates in the area that have attracted HNWIs, including Whale Rock Ridge, Brackenridge Estate, Whale Rock Heights and De Meermin.
Knysna is situated on the Garden Route, just west of Plettenberg Bay. Affluent parts of Knysna include The Heads, Leisure Island and top-end lifestyle estates such as Pezula Private Estate, Simola Golf and Country Estate and Thesen Islands.
George is the largest town on the Garden Route and a major retirement destination for wealthy South Africans. It is home to some of South Africa’s top lifestyle estates, including Fancourt and Oubaai Golf Estate.
Wilderness is a small coastal town on the Garden Route, situated about 5km east of George. It is home to some of the most spectacular beachfront houses in the country.
Nature’s Valley is an up-and-coming HNWI hotspot on the Garden Route, a 30-minute drive east of Plettenberg Bay. The forest and lagoon in the area are relatively untouched, which appeals to nature lovers. Notably, no motorboats are allowed on the lagoon, which is a hotspot for canoeing.
Other emerging HNWI hotspots
- Keurboomstrand on the Garden Route in the Western Cape
- Zinkwazi Beach on the north coast of KwaZulu-Natal
- Kenton-on-Sea on the Sunshine Coast in the Eastern Cape
- Umdloti on the north coast of KwaZulu-Natal