{"id":790980,"date":"2024-09-14T09:00:00","date_gmt":"2024-09-14T07:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=790980"},"modified":"2024-09-20T15:18:39","modified_gmt":"2024-09-20T13:18:39","slug":"this-is-south-africas-trophy-home-hotspot","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/790980\/this-is-south-africas-trophy-home-hotspot\/","title":{"rendered":"This is South Africa’s ‘trophy home’ hotspot"},"content":{"rendered":"\n

Cape Town’s luxury property market is still the cream of the crop, with properties selling for tens to hundreds of millions.<\/p>\n\n\n\n

Although the broader property market is often subject to significant fluctuations shaped by macroeconomic drivers, the high-end segment tends to buck the trend.<\/p>\n\n\n\n

High Street Auctions Director Greg Dart said that the market for trophy homes differs as (UHNW) buyers are more resilient to cost-of-living-related pressure.<\/p>\n\n\n\n

Dart added that the amount of international wealth invested in real estate is almost four times larger than the global GDP. Data from Savills also shows that real estate is worth more than the global equity and bond markets combined.<\/p>\n\n\n\n

\u201cAbout three-quarters of that value is invested in in residential property, what was $287.6 trillion at the end of 2022. Commercial property accounts for around 13%, while agricultural land represents 11%,” said Dart. <\/p>\n\n\n\n

\u201cThe high-end segment is a particular drawcard for UHNW investors due to its potential for capital appreciation, rental income and as a hedge against inflation.\u201d<\/p>\n\n\n\n

The latest Africa Wealth Report 2024 from Henley & Partners also showed that Cape Town is still the hottest property investment region for UHNW investment buyers.<\/p>\n\n\n\n

\u201cThe stats don\u2019t lie. Cape Town features the country\u2019s most opulent residential areas in the Prime 7 \u2013 Clifton, Bantry Bay, Camps Bay, Bishopscourt, Constantia, Llandudno, and St James<\/strong>.<\/p>\n\n\n\n

“And its no surprise that four suburbs on the list are on the Atlantic Seaboard, long touted as the international playground of A-listers and aristocrats.”<\/p>\n\n\n\n

He added that Cape Town continues to benefit from the ongoing semigration of wealthy South Africans. At the same time, the rest of the city is an incredibly popular destination for migration millionaires from Europe and the rest of Africa.<\/p>\n\n\n\n

\u201cCrucially, the Mother City is on track to overtake Johannesburg to become Africa\u2019s wealthiest city by 2030.\u201d<\/p>\n\n\n\n

As an example of a trophy home, High Street Auctions is also auctioning off 196 Kloof Road in Bantry Bay. <\/p>\n\n\n\n

Other houses on the street have sold for over R117 million.<\/p>\n\n\n\n

Images of the Kloof Road property up for auction at Bryanston Country Club in Johannesburg on September 19th can be found below:
<\/p>\n\n\n\n

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High Street Auctions<\/figcaption><\/figure><\/div>\n\n
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High Street Auctions<\/figcaption><\/figure><\/div>\n\n
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High Street Auctions<\/figcaption><\/figure><\/div>\n\n
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High Street Auctions<\/figcaption><\/figure><\/div>\n\n\n

Pam Golding Property CEO Andrew Golding <\/a>also recently said that South Africa’s housing market’s luxury market has seen incredible strength, with several multi-million-rand house sales in Cape Town over the last year.<\/p>\n\n\n\n

The outlook for the housing market is also strong, with several positive indicators increasing optimism. <\/p>\n\n\n\n

These positive indicators also include imminent interest rate cuts, consistent petrol price reductions (with more on the cards), improved confidence following the creation of the Government of National Unity (GNU) and a prolonged load shedding reprieve.<\/p>\n\n\n\n

Golding added that buyers and investors who were increasingly hesitant about property transactions are now committing to purchases.<\/p>\n\n\n\n

The Pam Golding Residential Property Index highlighted this trend, with National house price inflation rising to 4.7% in July 2024\u2014the highest level since February 2022.<\/p>\n\n\n\n

A significant reduction in stock levels has also highlighted the strength of the luxury end of the market, driving up prices.<\/p>\n\n\n\n

\u201cConfidence has returned to the luxury property market, driven by positive sentiment, improved financial conditions, local stock markets, and stable government,\u201d said Golding.<\/p>\n\n\n\n

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Read<\/strong>: Ramaphosa signs BELA school changes into law \u2013 but throws critics a bone<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

South Africa’s luxury property market is incredibly strong, with the incredibly rich far less likely to be impacted by the weak economy. <\/p>\n","protected":false},"author":95,"featured_media":790997,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[26,11515],"class_list":["post-790980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-headline","tag-high-street-auctions"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/790980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=790980"}],"version-history":[{"count":11,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/790980\/revisions"}],"predecessor-version":[{"id":791932,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/790980\/revisions\/791932"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/790997"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=790980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=790980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=790980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}