[imagesource:saota/property24]

That three-bedroom Clifton apartment up top is just one of many R100 million properties that are being particularly drooled over right now.

I know, it feels like dire times, and yet the luxury property market is absolutely booming.

The cost of living crisis is as pertinent as ever, and yet there are folks with deep pockets making investments in R10 million-R100 million properties across the country.

Naturally, the most sought-after affluent abodes exist along the shores of Cape Town, but the swanky suburbs of Johannesburg (Sandhurst, Hyde Park, and Waterkloof ) and KwaZulu-Natal (upper Morningside, Umhlanga, and Ballito) are also doing pretty well lately.

“Affluent South Africans and foreigners are pouring their money into trophy homes for a semblance of stability in tough economic times” notes Sunday Times, with Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty, adding that “investors are drawn to the historic stability of residential property”.

“This is especially true of the more resilient luxury market which traditionally offers solid returns well above the current interest rate.

“During the first two months of 2023, our two highest sales were an estate home in Constantiaberg for R28m and a house in Plettenberg Bay for R25.6m.”

While that R115 million “unique, iconic, panoramic” penthouse in Clifton is still on sale, a German buyer just forked out R75 million for his dream holiday home in Bantry Bay, complete with five bedrooms, a state-of-the-art kitchen, elevated pool deck with panoramic ocean and mountain views, a lift, a media room and a gym.

In the northern suburbs of Johannesburg, an influx of wealthy investors from other African countries are driving the market as they “perceive this area to be a financial safe haven”.

Andrew Golding, CEO of Pam Golding Property, refers to a recent sale of a home in Waterkloof for R19,5 million:

In Johannesburg a Sandhurst home was sold for R50m — the registration of which was concluded in February — while a Hyde Park home was snapped up for R25m in June last year.

Meanwhile, Durban is also riding the luxury property wave:

“In Durban there is the advantage of selling expansive luxury properties at a significantly lower price when compared to similar properties in the Cape.

“In Zimbali in the past six months, we have concluded several sales in the R12m-plus mark, the same as in the previous six months. R104m in sales was achieved at Zimbali in the past year.”

Cape Town is particularly loaded:

The latest Africa Wealth Report — by Henley and Partners and New Word Wealth — shows there are about 3,700 homes in South Africa valued at more than $1m (over R18m) as at December 2022.

The report says just over 40% of South Africa’s million-dollar homes are in the “Prime Seven” suburbs of Cape Town — Bantry Bay, Bishopscourt, Camps Bay, Clifton, Constantia, Fresnaye and Llandudno.

Samuel Seeff, chair of the Seeff Property Group, said while the super wealthy continue to live in Johannesburg’s northern suburbs and Pretoria East, many are investing in second homes in Cape Town:

“Most notably, where they may spend around R10m on a home in Sandton, they will spend upwards of R40m in Cape Town.

Shjoe, when the going gets tough, the rich get going.

[source:sundaytimes]