{"id":96329,"date":"2015-08-21T00:05:00","date_gmt":"2015-08-20T22:05:00","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=96329"},"modified":"2015-08-20T18:17:13","modified_gmt":"2015-08-20T16:17:13","slug":"10-things-you-should-know-about-south-africas-ultra-rich","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/96329\/10-things-you-should-know-about-south-africas-ultra-rich\/","title":{"rendered":"10 things you should know about South Africa’s ultra-rich"},"content":{"rendered":"

At the end of 2014, there were approximately 46,800 high net worth individuals (HNWIs) living in South Africa, with a combined wealth of US$184 billion.<\/p>\n

HNWIs are defined as people who have a net worth of US$1 million or more, according to metrics used by research firm, New World Wealth.<\/p>\n

This equates to roughly 31% of South Africa\u2019s total individual wealth.<\/p>\n

But who are the wealthy? Where do they live? How did thy make their money?<\/p>\n

BusinessTech provides a list of 10 things we know about South Africa’s super rich.<\/p>\n

1. How the rich make their money in SA<\/strong><\/p>\n

A report published by New World Wealth revealed the industry from which South African multi-millionaires have acquired their wealth.<\/p>\n

Unsurprisingly, the financial services industry is the primary source of wealth for 20% of local multi-millionaires.<\/p>\n

NWW defines wealth as the net value of assets, which includes financial holdings, business interests and tangible assets. The group excludes primary residences from it\u2019s valuation.<\/p>\n

\"Multimillioniares<\/a>

Multimillioniares by industry<\/p><\/div>\n

2. Where the rich live<\/strong><\/p>\n

Johannesburg is home to the highest population of ultra-rich billionaires in Africa when it comes to cities on the continent.<\/p>\n

In fact, the\u00a02015 Knight Frank Global Wealth Report<\/a>\u00a0shows that\u00a0the South African economic hub has almost twice the number of multi-millionaires \u2013 people with a net worth exceeding $30 million (R365 million).<\/p>\n

\"Joburg<\/a>

Joburg city<\/p><\/div>\n

\u00a03. South Africa’s rich vs the world<\/strong><\/h3>\n

Financial services firm Credit Suisse estimates that 63,000 South Africans are part of the top 1% of global wealth holders \u2013 and 47,000 of these individuals are dollar millionaires.<\/p>\n

According to the group\u2019s data, about 920,000 people (2.8% of the adult population in SA) are worth over US$100,000, fitting comfortably within the top 10% of wealth holders in the world.<\/p>\n

\"Money<\/a><\/p>\n

4. Richest streets in SA<\/strong><\/p>\n

Lightstone Property revealed which streets in SA command the highest average sales transfer prices.<\/p>\n

The affluent suburbs of Cape Town dominate the list, with four of the five richest streets found in areas such as Clifton, Fresnaye, Llandudno and Bishopscourt.<\/p>\n

Gauteng, too, accounts for many of the top addresses, with streets in Hyde Park, Bryanston and Sandhurst valued in the tens of millions.<\/p>\n

\n
\n\n\n\n\n\n\n\n
#<\/th>\nStreet<\/th>\nSuburb<\/th>\nAverage Value<\/th>\n<\/tr>\n
1<\/td>\nClifton Road<\/td>\nClifton<\/td>\n49 000 000<\/td>\n<\/tr>\n
2<\/td>\nDe Wet Road<\/td>\nFresnaye<\/td>\n43 000 000<\/td>\n<\/tr>\n
3<\/td>\nSteenways Road<\/td>\nLlandudno<\/td>\n40 000 000<\/td>\n<\/tr>\n
4<\/td>\n4th Road<\/td>\nHyde park<\/td>\n34 000 000<\/td>\n<\/tr>\n
5<\/td>\nUpper Sidmouth Avenue<\/td>\nGardens<\/td>\n29 200 000<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

5. The best age to be rich<\/strong><\/p>\n

According to NWW, the average age of a multi-millionaire in SA, namely an individual with wealth of at least US$10 million, is 55 years.<\/p>\n

This is slightly below the worldwide average of approximately 56 years.<\/p>\n

The majority of them, 37%, are aged between 51 and 60 years, while 20% are between the ages of 61-70, and 9% are 70 and older.<\/p>\n

In South Africa, the country\u2019s billionaires<\/a><\/strong> are aged between 50 (Stephen Saad) and 77 (Allan Gray). The richest man in the country, Johann Rupert, is 67 years old.<\/p>\n

Interestingly, however, 34% of the country\u2019s multi-millionaires are actually under 50, with 28% between 41-50, and 6% under the age of 40. This would suggest quite a reasonable amount of entrepreneurial activity in the country.<\/p>\n

\"Rich<\/a>

Rich kid billionaire<\/p><\/div>\n

6. What the rich buy<\/strong><\/h3>\n

Super luxury watches are a booming market in South Africa.<\/p>\n

Not long ago, when one thought of exclusive men\u2019s watches one would probably think of brands such as Rolex, Breitling, Omega, Tag, Cartier, IWC, Panerai, Jaeger Le Coultre, and Longines.<\/p>\n

However, a whole new world of exclusivity has emerged, giving rise to new \u2018super-luxury\u2019 watchmakers<\/a>, according to New World Wealth.<\/p>\n

In November 2014, a Patek Philippe Super-complication pocket watch sold for an astounding $24 million at a Sotheby\u2019s auction, following a previous record of $11 million in 1999.<\/p>\n

\"Patek<\/a>

Patek Philippe Supercomplication<\/p><\/div>\n

\u00a07. Home, sweet second home<\/strong><\/h3>\n

Approximately 990 of all SA\u2019s multi-millionaires have a primary residence in Johannesburg, with 380 in Cape Town, 115 in Durban, and 105 in Pretoria.<\/p>\n

The super-rich choose to live in areas such as Sandhurst, Hyde Park, and Houghton \u2013 but many also have a second home in coastal regions.<\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n
#<\/th>\nTown<\/th>\nArea<\/th>\nNo. of super-rich with second homes<\/th>\n<\/tr>\n
1<\/td>\nPlettenberg Bay<\/td>\nGarden Route<\/td>\n260<\/td>\n<\/tr>\n
2<\/td>\nUmhlanga & La Lucia<\/td>\nKwaZulu-Natal<\/td>\n250<\/td>\n<\/tr>\n
3<\/td>\nKnysna<\/td>\nGarden Route<\/td>\n230<\/td>\n<\/tr>\n
4<\/td>\nStellenbosch<\/td>\nWestern Cape<\/td>\n170<\/td>\n<\/tr>\n
5<\/td>\nFranschoek<\/td>\nWestern Cape<\/td>\n70<\/td>\n<\/tr>\n
6<\/td>\nWilderness<\/td>\nGarden Route<\/td>\n60<\/td>\n<\/tr>\n
7<\/td>\nHermanus<\/td>\nGarden Route<\/td>\n30<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

8. Elite banking<\/strong><\/p>\n

The super rich also have their own way of banking.<\/p>\n

Issued by Nedbank Private Wealth, Centurion is a credit card available by invitation only or upon appointment to a select group of individuals in South Africa.<\/p>\n

The Centurion Card is made of titanium, one of the world\u2019s most precious metals. After being heated to a temperature of 1,688\u00b0C, the metal is carefully handcrafted and emblazoned with the Member\u2019s name in individually set lettering \u2013 making it the only one of its kind.<\/p>\n

See other elite cards in SA here <\/a><\/p>\n

\"American<\/a>

American Express Black Card<\/p><\/div>\n

9.\u00a0 The rich get going<\/strong><\/h3>\n

Rich South Africans are spreading their roots as they leave local shores.<\/p>\n

Between 2000 and 2014, approximately 8,000 HNWIs have left the country.<\/p>\n

South African HNWIs tend to move to places like Australia, the UK, Cyprus, Mauritius, the USA and Canada, NWW said.<\/p>\n

\"AUS<\/a><\/p>\n

10. South Africa’s richest people<\/strong><\/p>\n

Forbes listed seven South African billionaires worth a combined $28.6 billion, up from $25.4 billion in 2014.<\/p>\n

South African luxury goods tycoon, Johann Rupert remains the country\u2019s richest man with a net worth of $7.4 billion.<\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n
Rank#<\/strong><\/th>\nName<\/strong><\/th>\nNet Worth 2015<\/strong><\/th>\nNet Worth 2014<\/strong><\/th>\nChange<\/strong><\/th>\n<\/tr>\n
179<\/td>\nJohann Rupert<\/td>\n$7.4 billion<\/td>\n$7.6 billion<\/td>\n-2.6%<\/span><\/td>\n<\/tr>\n
201<\/td>\nNicky Oppenheimer<\/td>\n$6.7 billion<\/td>\n$6.7 billion<\/td>\n0.0%<\/td>\n<\/tr>\n
225<\/td>\nChristo Wiese<\/td>\n$6.3 billion<\/td>\n$3.2 billion<\/td>\n97.0%<\/span><\/td>\n<\/tr>\n
810<\/td>\nKoos Bekker<\/td>\n$2.3 billion<\/td>\n$1.3 billion<\/td>\n76.9%<\/span><\/td>\n<\/tr>\n
847<\/td>\nPatrice Motsepe<\/td>\n$2.2 billion<\/td>\n$2.7 billion<\/td>\n-18.5%<\/span><\/td>\n<\/tr>\n
894<\/td>\nStephen Saad<\/td>\n$2.1 billion<\/td>\n$1.3 billion<\/td>\n61.5%<\/span><\/td>\n<\/tr>\n
1226<\/td>\nAllan Gray<\/td>\n$1.6 billion<\/td>\n$1.3 billion<\/td>\n23.1%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

More on the ultra rich in South Africa<\/strong><\/p>\n

How South Africa\u2019s ultra-rich make their money<\/a><\/strong><\/p>\n

The most expensive streets in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

At the end of 2014, there were approximately 46,800 high net worth individuals (HNWIs) living in South Africa, with a combined wealth of US$184 billion.<\/p>\n","protected":false},"author":10,"featured_media":74328,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9880],"tags":[223,10347,26,10349,6440],"class_list":["post-96329","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth","tag-credit-suisse","tag-frank-knight","tag-headline","tag-lightstone-property","tag-new-world-wealth"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/96329","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\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=96329"}],"version-history":[{"count":12,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/96329\/revisions"}],"predecessor-version":[{"id":96355,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/96329\/revisions\/96355"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/74328"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=96329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=96329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=96329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}