New World Wealth and Henley & Partners have published their African Wealth report for 2022, detailing the living 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 report shows that South Africa’s multimillionaires are increasingly choosing to work remotely and live in smaller affluent towns. The top destinations of choice include Hermanus, Plettenberg Bay and Franschhoek – in the Western Cape. Lifestyle estates in these towns have all benefited, New World Wealth said.
This forms part of a broader trend by the country’s affluent to leave traditional suburban and city living in favour of secure ‘lifestyle estates’.
Based on the latest estimates, 48% of South African HNWIs either live or have second homes on lifestyle estates. This percentage has been rising steadily over the past decade —in 2011 it stood at about 30%.
“Affluent buyers in South Africa are increasingly moving towards estates that have apartments. In line with this, most new luxury estate developments in South Africa focus on apartment living rather than houses,” New World Wealth said.
There is a general movement away from traditional golf estates and towards wildlife and parkland estates. Retirement estates, for over 60s, are also becoming more popular, the group said.
“Most developers are now creating small neighbourhoods within their lifestyle estates, as opposed to the old model where houses were spaced evenly around the entire property. The new model allows for more parkland and open spaces in between neighbourhoods.”
South Africa is a global pioneer in estate living and is home to many of the world’s best lifestyle estates, including the likes of Val de Vie, Steyn City, Fancourt, Pezula and Steenberg.
Reasons for its rising appeal across Africa include:
- Security and privacy – access gate, private security personnel.
- Lifestyle and community – large open spaces, communal leisure facilities, children’s playgrounds and schools
- Facilities – on-site gyms, spas, golf courses, horse riding, tennis, cycling, fishing and jogging paths.
- Limited and controlled traffic – greater safety for children.