South Africa’s high-end property market is surging with homes priced at R50m and even beyond R100m becoming increasingly common, particularly in Cape Town’s most sought-after neighbourhoods.
According to Pam Golding Properties CEO Andrew Golding, the demand for luxury and ultra-luxury residences is being fuelled by renewed economic confidence, easing inflation and expectations of further interest-rate cuts.
“In the luxury and ultra luxury segment, the Western Cape and Cape Town in particular continue to experience high levels of demand, particularly in the city bowl and Atlantic seaboard, where achieved property prices of R50m and even beyond R100m are no longer unusual exceptions,” said Golding.
One of the highest-priced listings being marketed by the group is a R189m three-level nine-bedroom residence in Bishopscourt with sweeping mountain views in one of the southern suburbs’ most exclusive enclaves.
Golding also noted that prices are surpassing expectations amid significant interest from a mix of local, national and international buyers.
The national housing market is firmly in recovery mode, he said.
“Underpinned by improving economic sentiment, fuelled by a series of interest rate cuts — with the prospect of further rate relief, and supported by contained inflation, South Africa’s national housing market recovery continues apace.”
Golding said the outlook is brightened by several developments including the country’s recent exit from the Financial Action Task Force (FATF) grey list.
“The outlook is further buoyed by an anticipated reduction in fuel prices and, notably, the country’s exit from the Financial Action Task Force (FATF) grey list, all of which is positive for investor confidence in general.”
South Africa was officially removed from the FATF grey list in October after meeting all required anti-money laundering and counter-terrorist financing reforms.
The global financial crime watchdog had placed the country on the list in February 2023 for failing to comply with international standards.
South Africa was delisted alongside three other African nations — Nigeria, Burkina Faso and Mozambique.
Golding said the Western Cape still leads as house price growth climbs steadily nationwide.
“National house price growth remains on an upward trajectory, rising to +4.0% in September 2025, according to the Pam Golding Residential Property Index, with the Western Cape continuing to lead with annual growth of +7.9%,” he said.
The Western Cape is also seeing a rebound in planned residential building activity, “driven by a marked increase in approvals for flats and apartments particularly in prime Western Cape markets”.
KwaZulu-Natal’s coastline is also proving to be a magnet for luxury buyers. Golding highlighted the rapid sell-out of Beachwood Coastal Estate in Durban North.
“Indicative of a strong appetite for high-end coastal living in KwaZulu-Natal, Pam Golding Properties achieved R634m in sales within just two days of launching Beachwood Coastal Estate,” he said.
The development achieved more than R10,000 per square metre, with villa prices reaching R25m, apartments about R15m and vacant erven selling for up to R20m.
Buyers included locals, upcountry investors and purchasers from Dubai and Tokyo.
While the Western Cape and KwaZulu-Natal dominate the luxury conversation, Johannesburg’s high-end market is also showing signs of reinvigoration.
“In Johannesburg, the luxury market appears to be slowly but surely reviving, with high-net-worth buyers originating mainly from within South Africa and other African nations. Many are seeking secure, amenity-rich estates or established suburbs offering boomed, access-controlled streets that combine strong community appeal with enhanced security,” said Golding.
The preferred areas include Sandton, Fourways and Midrand, driven by proximity to top schools, business hubs and lifestyle amenities.
Golding added that international destinations continue to draw South African and global investors, with Mauritius and Kenya remaining hotspots for wealthy African buyers.
“Mauritius continues to attract affluent global residents seeking a secure, tranquil lifestyle in a tropical setting,” he said.
The island’s residency-through-investment model, modern health care and retail offerings and natural beauty have strengthened its appeal for those wanting a safe place to live and invest.
“Kenya’s luxury market continues to perform with steady confidence, underpinned by heritage, lifestyle and enduring value,” said Golding.
He said Nairobi’s ultra-prime suburbs, including Muthaiga, Thigiri and Runda, are seeing strong demand from local buyers seeking distinction.
By 2026, he added, Nairobi’s position will strengthen further when it becomes one of just four cities globally to host a UN headquarters alongside New York, Geneva and Vienna.
TimesLIVE
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