Deeds Office transactions over the last year shows that Cape Town dramatically outpaces the super luxury sales sector of Johannesburg and Sandton.
According to Samuel Seeff, chairman of the Seeff Property Group, we continue seeing the strengthening of the general trend of affluent high net worth buyers (HNWIs) who spend in excess of USD 1 million on property in the Cape compared to less than half of that on average in the wealthy suburbs of Sandton and Johannesburg.
What type of transactions are being recorded?
When comparing the number of transactions above R5 million, the data shows that almost 70% were concluded in the Cape Town metro (2,354 transactions) compared to less than half (1,046 transactions) across Sandton and Johannesburg.
Transactions above R10 million shows that 77% were concluded in Cape Town (546 transactions) compared to just 160 in Johannesburg/Sandton.
Transactions above R20 million (USD 1 million approx.) shows that a notable 84% of all sales were concluded in the Cape, mostly across the Atlantic Seaboard, City Bowl and Southern Suburbs, but also in Stellenbosch and Hermanus.
The top high net worth suburbs where the R20 million-plus sales were concluded include Clifton, Bantry Bay, Fresnaye, Camps Bay, Bakoven, Llandudno, Waterfront, Mouille Point and Sea Point on the Atlantic Seaboard, Oranjezicht and Higgovale in the City Bowl. The top areas in the Southern Suburbs include Constantia and Bishopscourt.
Johannesburg and Sandton areas include Sandhurst, Hyde Park, Houghton and Steyn City.
Additionally, there were sales above R20 million in Sea Side Longships in Plettenberg Bay and in Voëlklip and Kwaaiwater in Hermanus. Super luxury sales were notably up in Stellenbosch, mostly in the De Zalze and De Bosch estates.
The top ten suburbs where affluent buyers invested in home priced over R20 million include:
Source: Seeff/Propstats/Lightstone
Interesting observations include that Constantia emerged as the suburb with the highest volume of R20 million-plus houses sold, mostly in the Constantia Upper area. It is also the first year that Clifton ranked so long, especially in terms of only achieving a highest price of R47 million which is well below what it should be for SA’s top suburb, says Seeff.
Also noteworthy is the rise of Stellenbosch in the rankings with no less than ten sales above R20 million and a highest price of R69 million paid in the De Zalze Golf Estate.
Seven sales in Bishopscourt are also a record for the suburb although the highest price of R39 million is also well below what should be achieved there, says Seeff.
About nine properties sold for over R50 million with only two of those topping the R100 million price mark and a highest price of R125 million in Bantry Bay appears to be the highest price paid for a residential property in 2022.
There was a notable uptick in high-net-worth buyers from Gauteng, especially notable in the Atlantic Seaboard sales along with a welcome return of foreign buyers, mostly from Germany, the UK, Switzerland, Finland and France.
Cape Town is certainly a popular property market.
Writer: Gina Meintjes