Imagine retiring to a bungalow on a Blue Flag beach with mountains views and unforgettable sunsets night after night. Sounds idyllic, but you’ll have to start saving. The Ridge & Cliff Road, along the beachfront in Clifton, is the most expensive piece of real estate in South Africa, with homes valued at a staggering R95 000 per square metre.
Considering that Clifton boasts 100 homes valued at R20 million or more, if you’re looking to invest in SA’s most exclusive street, in one of its most affluent neighbourhoods, you may want to start saving now.
These figures come the New World Wealth South Africa 2017 Wealth Report. The report offers fascinating insight into how South Africa’s fabulously wealthy live. Perhaps even more interesting, the report details the suburbs that have outperformed the property market over the last ten years.
Cape Town’s gilded streets
Four of South Africa’s five most expensive roads and developments are all in Clifton. Not too far down the Atlantic Seaboard, you’ll find the country’s second most expensive road, the V&A Marina development on Dock Road, at the Waterfront. Property there costs a cool R91 000 per square metre.
The New World Wealth report notes that calculating the number of houses worth over R20 million is a useful way to gauge the exclusivity of a suburb. It’s no surprise that many of the most expensive homes are found along the Cape Town coastline. In Camps Bay and Bakoven, there are 180 houses worth R20 million or more. As mentioned above, there are a further 100 in neighbouring Clifton. Fresnaye, Bantry Bay and LLandudno also feature seriously pricey real estate.
Cape Town’s wealthiest don’t only reside on the Atlantic Seaboard. Constantia and Tokai contain 100 homes worth at least R20 million. Bishopscourt has 80 homes worth R20 million plus.
Joburg’s established elite
It will come as little surprise that Sandhurst has more houses worth R20 million or more than any other Johannesburg suburb (100). Hyde Park and Houghton both contain 90 homes at that price range. Westcliff is at fourth place with 50.
It’s interesting to note that Joburg’s established wealthy suburbs are still the most affluent in the city, even as many of Joburg’s wealthiest are moving to private estate in the north.
Tomorrow’s old money
For those of us who don’t run global companies or have government expense accounts (Grace Mugabe apparently paid R45 million for her Sandhurst residence) a R20 million house is little more than an object of fantasy.
The good news for the prospective homeowner is that the strongest growth has come from suburbs that are highly desirable but more realistically priced than Clifton or Sandhurst.
Noordhoek was the top performing suburb in Cape Town over the last decade, seeing an increase in value of of 12% per square metre between 2007 and 2017 (measured in US$).
In Johannesburg, Illovo and Parkhurst saw impressive growth of 6% per square metre.
South Africa’s best performing town was Nature’s Valley, in the Garden Route, which boasts an increase of 12%. Wine lovers may also consider Franschhoek’s impressive 10% growth in value.
If you’re craving golden beaches and warm water, Zinkwazi along the KwaZulu-Natal coast, saw an increase of per square metre value of 7%.
The New World Wealth reports points out that, overall, US$ prices per square meter in South Africa are down 12% over the past decade. The high performing towns and suburbs therefore demonstrate comparatively excellent performance.