Cape Town dominates latest list of the ten pricey neighbourhoods where the wealthy hang their hats, writes Simpiwe Piliso

Seven of the country's 10 most expensive suburbs are located in Cape Town - which now holds the title, among the rich, of South Africa's most sought-after city.

A report compiled by specialist property consultancy Lightstone says that Cape Town's Atlantic coast, a 3km strip stretching from Bantry Bay to Camps Bay, has attracted scores of the country's wealthy jet-setters, who are splashing out millions in cash for sea-facing villas, apartments, and the rare vacant plot.

Topping the list this year is Clifton, where sea-facing villas have been bought for R35-million and demolished to make way for new R100-million mansions. T he Lightstone report puts the average price in the suburb at R12-million, but properties can fetch more than R100-million.

Clifton property owners, many of whom use their properties as luxury getaways, include former Springbok rugby coach Harry Viljoen, former First Rand CEO Paul Harris, and finance expert Hugo Jankowitz, who put his home on the market for about R90-million. IT tycoon Leo Baxter reportedly planned to demolish his R30-million home and replace it with a more modern mansion.

Clifton, known as the jewel of the Atlantic Seaboard, is also home to retired Pick n Pay CEO Sean Summers, whose property reportedly boasts a 1000m², 11-car garage with a workshop for his Ferraris.

A modest home at Cape Town's Steenberg golf estate, ranked as the second priciest suburb in South Africa, averages about R11.4-million.

"This year, we have seen premier beach-front properties outperforming golf estates, which dominated the list last year," said Hayley Ivins, who heads Lightstone's estate agents division.

Llandudno is in third place. T he average price for a modest piece of the coastal suburb is R8.5-million.

Cape Town's prime tourist destination, the V&A Waterfront residential marina, where a four-bedroom penthouse was snapped up for R100-million, is ranked fifth, with average prices at R8.4-million.

The average price in Cape Town's Bishopscourt, which is ranked sixth, is R8.2-million. Prices at KwaZulu-Natal's Zimbali Coastal Resort, which sails in at seventh place, average R8.1-million.

In Cape Town's Constantia, which is ranked eighth, buyers can expect to pay about R7.7-million.

Sandhurst, a high-security enclave in northern Johannesburg, is ranked ninth on the list and the average price tag is R7-million. However, a shortage of properties has turned subdivision into a bonanza for owners and investors who are offering their homes to buyers at R20-million and more.

In 10th place on the list is Camps Bay, where the average price is R6.6-million.

Black buyers shut out

A top real estate agency's database shows that the number of black buyers in formerly white suburbs has dropped from 25% to a measly 5% since 2007.

Sotheby's International Realty SA chairman Lew Geffen blames the National Credit Act (NCA).

Implemented in June 2007, the NCA has made it more difficult for entry-level buyers and even middle-income earners to buy property because many find that their disposable income isn't sufficient to cover - or even qualify for - the required bond repayments.

"The NCA is preventing thousands of potential homeowners from acquiring finance to buy property," said Geffen

"And the lack of access to credit because of the manner in which banks are applying the NCA is shutting thousands of buyers out of the market and denying them the opportunity to build wealth through home ownership."

Geffen said his books reflected a massive drop in middle-income and wealthier black buyers since 2007.

"In 2007, at least 25% of home sales by Sotheby's International Realty SA were to newly wealthy beneficiaries of BEE. But after the introduction of the NCA in 2008, the percentage of black buyers in traditional suburbs dropped back to 15% and now we are back at 5% ... which is where we were in 1994, just after the first democratic election.

"The rich in the country's property market are getting richer while the poor get poorer because of the way the NCA is being applied. In fact, the door has not just been closed on them, it has been slamlocked, and the worst affected are black buyers," he said.

Geffen said a lot of potential black buyers "had not had sufficient time to build up extensive credit histories or asset bases that would make them better risks in the eyes of the banks".

Adrian Goslett, chief executive of RE/MAX of Southern Africa, supported Geffen's sentiments.

"Cash is still king when it comes to property sales in the current market. The stringent lending criteria of the banks, including steep deposit requirements, as well as affordability assessments in terms of the NCA, continue to make it difficult for buyers to obtain home loans to finance property sales."

Be it ever so humble

An over-the-top £140-million (about R1.5-billion) price tag for a two-floor apartment in London has been described as outrageous - but the palace in the sky has already secured a buyer.

The apartment, which boasts a view over central London and an underground passage to a five-star restaurant, has claimed the title of being the most expensive apartment in the world.

The price tag of SA's most expensive apartment pales in comparison at a mere R110-million for an 800m² duplex which runs across the top two floors of Cape Town's One&Only hotel.

This week the Daily Mail reported that the London apartment, which also features security measures a James Bond villain would be proud of, is on the verge of being sold.

The two-floor apartment in the One Hyde Park, Knightsbridge block reportedly has floor-to-ceiling windows, its own car park and access to a host of spas and squash courts.

The residence has security features including bullet-proof windows, SAS-trained security guards, an air purifier to frustrate poison gas attacks and a "panic room" where the owners can retreat in safety should they be targeted by kidnappers or robbers.

About 65% of all the properties in the block, due to open later this year, have been sold. The average price tag is £20-million.