A number of small coastal towns and one Cape Town suburb could soon see home prices reaching the R20 million mark.
This is according to the South Africa Wealth Report, which was released by AfrAsia Bank and New World Wealth on Thursday. The report showed that SA is home to 43,600 dollar millionaires – people with net assets of $1 million (R11.9 million) or more – as well as 2,200 with net assets of at least $10 million (R119 million).
Most of the dollar millionaires (some 18,400) still live in Johannesburg, but the past year saw strong growth in wealthy people moving to Paarl, Franschhoek and Stellenbosch (3,200) and the Garden Route (3,000).
According to the report, some 2,400 homes in South Africa are valued at R20 million or more.
Some of the most exclusive suburbs include Camps Bay, Clifton, Sandhurst and Constantia. Plettenberg Bay has 130 homes valued at more than R20 million, with Umhlanga and La Lucia (110 homes), Knysna (100) and Stellenbosch (90) also featuring among the most exclusive town in South Africa.
The report predicts that a number of other small towns and suburbs could be the next hotspots for R20 million plus homes in SA:
Keurbooms on the Garden Route offers residents more privacy than nearby Plettenberg Bay, says the report.
Natures Valley, also on the Garden Route, has a forest and lagoon that is relatively untouched. This appeals to nature lovers, says the report. “Notably, no motor boats are allowed on the lagoon (it is a hotspot for canoeing).”
Zinkwazi (or Nkwazi) on the north coast of KwaZulu-Natal has benefited from the construction of King Shaka International Airport in nearby La Mercy. “It is less developed and has larger plots than nearby Ballito and Umhlanga.”
St Francis Bay is west of Port Elizabeth. “Property along the St Francis Canals is very exclusive, as is property in the St Francis Links Golf Estate.”
This Cape Town suburb has been one of the fastest growing property markets in SA (in terms of price growth per square meter. “Prices there should continue to rise strongly going forward,” predicts the report.