South Africa’s top suburbs for luxury homes

Cape Town’s Atlantic seaboard suburbs of Camps Bay and Clifton, along with Johannesburg’s wealthy Sandhurst and Hyde Park neighbourhoods, account for the majority of luxury homes in South Africa.

This according to a report by consultancy New World Wealth. Luxury homes are defined as those with a value of R20m (US$1.74m) or more.

Lisa Bathurst, managing director of property services company Hurst & Wills, says she is not surprised that seven out of South Africa’s top 10 luxury suburbs are in Cape Town.

According to Bathurst, these neighbourhoods are popular among well-to-do Capetonians as well as those commuting between Cape Town and economic hub Johannesburg. She also highlights a steady supply of investors from Europe and other African countries, such as Angola and Nigeria, scooping up luxury residences in Cape Town.

Cape Town: Top suburbs for R20m homes, 2013-2014
SuburbNo. of R20m homes, 2013No. of R20m homes, 2014
Camps Bay155162
Constantia & Tokai7881
Bantry Bay7078
Cape Town total775813

Most of these homes are being paid for in cash, according to Bathurst. South Africa’s weak local currency has made property more affordable to foreigners.

“Cape Town is definitely changing. I have seen in the past year a clear move towards status, brands and unashamed wealth, and obviously this transcends into property purchases,” she adds.

Johannesburg: Top suburbs for R20m homes, 2013-2014
SuburbNo. of R20m homes, 2013No. of R20m homes, 2014
Hyde Park112116
Johannesburg total538550

Other cities and towns featuring a large number of luxury homes include Stellenbosch, Knysna, Plettenberg Bay and Durban. Many of the R20m-plus homes in these areas are situated on golf and lifestyle estates such as Zimbali (40km north of Durban) and Pezula (Knysna).

Other: Top cities/towns for R20m homes, 2013-2014
Suburb/CityNo. of R20m homes, 2013No. of R20m homes, 2014
Knysna & Plettenberg Bay*198205
Stellenbosch & Franschhoek137151
George, Fancourt, & Wilderness8595
Other total790868
* Knysna & Plettenberg Bay includes Knysna, Plettenberg Bay, Keurbooms, Pezula and Simola.
** Durban includes Durban, Umhlanga, La Lucia, Zimbali and Mount Edgecombe.