Cape Town’s luxury property market continues to dominate, with homes selling for tens to hundreds of millions of rands, Cape {town} Etc reports.
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While the general property market often fluctuates due to broader economic factors, the high-end segment remains more stable, consistently attracting ultra-high-net-worth (UHNW) buyers who are less impacted by cost-of-living pressures.
Greg Dart, Director of High Street Auctions, noted that the market for trophy homes varies because ultra-high-net-worth (UHNW) buyers tend to be more resilient to cost-of-living pressures.
The luxury home market operates differently from the mainstream market. Dart pointed out that wealthy international buyers tend to be more resilient, and global investment in real estate is nearly four times the size of the world’s GDP. Dart also referenced data from Savills, highlighting that real estate globally is worth more than both equity and bond markets combined.
Dart said, ‘Roughly 75% of that wealth is held in residential property, valued at $287.6 trillion by the end of 2022,’ Dart explained. ‘Commercial properties make up about 13%, while agricultural land accounts for 11% of the total.’
He emphasised that high-end properties are especially attractive to UHNW investors, offering strong potential for capital growth, rental returns and inflation protection.
The 2024 Africa Wealth Report, compiled with Henley & Partners, reinforces Cape Town’s appeal, identifying it as the top destination for UHNW property investors in Africa.
Dart noted that the city’s most prestigious neighbourhoods, often referred to as the ‘Prime 7,’ include Clifton, Bantry Bay, Camps Bay, Bishopscourt, Constantia, Llandudno, and St James.
‘It’s no surprise that four of these suburbs are located on the Atlantic Seaboard, a hotspot for international celebrities and elite buyers,’ Dart said.
According to BusinessTech, Cape Town’s property market is also benefiting from the ongoing trend of semigration, with affluent South Africans relocating to the city. Additionally, the city is a top choice for wealthy immigrants from Europe and Africa, further boosting its real estate sector.
Dart added that Cape Town is projected to surpass Johannesburg as Africa’s wealthiest city by 2030, cementing its status as a premier destination for high-net-worth individuals.
One of the latest trophy homes in the spotlight is located at 196 Kloof Road in Bantry Bay, set to be auctioned by High Street Auctions. Nearby properties have fetched prices exceeding R117 million.
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Picture: Sothebys International Realty
