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Dollar Millionaires’ Row

May 6, 2019 | Property News

Cape Town luxury homes still rank top among ultra high-end buyers globally in super-luxury sales were concluded in Cape Town last year, about R1bn thereof on the Atlantic Seaboard

Content provided by partner Business Day HOMEFRONT magazine

WORDS: STAFF WRITER | PHOTOS: SUPPLIED

Perhaps you thought the Atlantic Seaboard price balloon was deflating and luxury residential property sales were cooling off? Well, here are seven reasons why Cape Town is still rated as one of the world’s preferred ultra-luxury property destinations.

1. DOLLAR MILLIONAIRES

Knight Frank recently launched its 2019 Wealth Report, an annual publication that tracks price movements across 100 luxury residential property markets. Research showed that 63% of the world’s ultra-high net worth individuals (UHNWIs) saw an increase in their personal wealth in 2018. These individuals typically have a net worth of $30m, excluding their primary residence. Nice for some …

In 2019 the number of dollar millionaires globally will exceed 20-million for the first time. This UHNWI population will increase by 22% within the next five years.

2. AFRICA RISING

  • SA is the largest wealth hub in the region and retains this spot in 2019. The country will have a 32% share of Africa’s ultrawealthy population in five years’ time.
  • Kenya leads Africa in the ultra-wealthy category with a 24% forecast growth in UHNWIs by 2023. The number of ultra-wealthy Kenyans is estimated to reach 155 individuals in that year, amounting to 6% of the continent’s total UHNWI population.
  • Africa will grow its UHNWI population by 31% in the decade to 2023.

3. CALLING CAPE TOWN

  • Madrid, Berlin, Paris and Cape Town all top Knight Frank’s 2019 luxury residential property forecasts at 6% growth
  • Those key European cities, plus Cape Town, lead with the highest predicted luxury residential growth for 2019. Liam Bailey, head of global research at Knight Frank, pinpoints these cities as increasingly popular investment hubs for Europeans this year, with a growing Chinese buyer presence too.
  • Cape Town is flagged as a top performer for prime residential growth in 2019.

4. INDEX RANKING

  • The Mother City’s performance is also ranked 28th globally of 100 cities in the Prime International Residential Index (PIRI 100) for 2019, showing a 3.8% annual increase.
  • The PIRI 100 tracks the value of 100 luxury residential markets annually. This indicates a small but increasing movement in luxury residential price growth in Cape Town. (FNB supplied Knight Frank’s PIRI data and generally measures only Atlantic Seaboard sales.)

5. MICRO MARKET

Cape Town has its own micro market and property comes down to lifestyle choices, according to Knight Frank South Africa CEO Richard Hardie. “It’s their main or second home. We sold a Bakoven ocean-facing home for R25.5m cash in late January. I could have sold it four times over. These people can afford to buy a R25m or R30m home in Cape Town quite easily, comparable to the price of a one-bedroomed flat in Mayfair, London. That is the demographic we are dealing with: the ultra-high net worth market. There are also Johannesburg buyers looking for luxury Cape homes, with a budget of between R15m and R40m being very common.”

6. SUPER-LUXURY SLOWDOWN

Seeff Property Group chairman Samuel Seeff says there has been a slowdown in local R20m plus residential luxury sales as buyers wait to see what unfolds politically and economically. While this top-end category is down by about 50% from the highs of 2015-17, Seeff says Propstats data shows that just less than R1.6bn Dollar millionaires’ row

7. PRICES FETCHED

These recent higher-value sales were concluded in Cape Town suburbs during 2018/19:

R80m – an apartment in Bantry Bay (Seeff)
R62m – a home in Constantia (Seeff)
R57m – a home in Kloof Road, Clifton (Seeff)
R55m – a home in De Wet Road, Fresnaye (Seeff)
R41.5m – a unit in Beach Road, Mouille Point (joint Seeff sale)
R400m – 30 luxury apartments/penthouses at Lawhill Luxury Apartments, V&A Marina (Quoin Online/ TPF Advisors)

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