In the upper echelons of SA society the wealthy are splurging on uber-luxury properties from penthouses to sprawling mansions as the demand for fine, spacious living grows.
Property experts say they are seeing a “discernible uptick” in demand for luxury homes in the R10m and upward price brand, mainly driven by local buyers.
Andrew Golding, CEO of Pam Golding Property, has found that in the flat living genre, penthouses are highly sought after.
“Due to their nature – limited in supply and as a result yield very good returns on investment – in our experience [penthouses enjoy] a premium of some 20-25% over other flats in the same building.
“They are luxurious and spacious – usually with the very best finishes and features such as large windows with abundant natural light, expansive patio and private swimming pool – and, importantly, offer privacy, often with their own lift and entrance.
“Penthouses, such as those in Cape Town’s V&A Waterfront, can fetch up to R40m and above.
“Apart from local purchasers, in Cape Town’s sought-after, conveniently located southern suburbs, for the year to date the buoyant Constantia high-end market – with its open space, sprawling wine farms and proximity to private and government schools – has been mainly driven by buyers from Gauteng and KZN.”
Golding said Camps Bay and Clifton remained prime real estate along the Atlantic seaboard, “where recent high-end transactions concluded by our agents extend to homes achieving individual prices of R70m”.
In Plattekloof in Cape Town’s northern suburbs, Pam Golding Properties area principal Pierre Nel said: “Typically, luxury residences recently sold include freehold houses in security and lifestyle estates or more spacious homes in areas such as Plattekloof, where upmarket Baronetcy Estate, with its modern, new-build homes in a secure, gated community, is proving popular.
Buyers believe that if they are going to be in lockdown, it should be in space that facilitates some form of normality.
— Lambert Bezuidenhout, property agent
“Prices of sales which we’ve concluded in Baronetcy Estate range from about R10.5m to in excess of R60m. Interestingly, we’ve also noted an increase in demand from UK and American buyers in our area.”
In Gauteng Steyn City is also seeing brisk sales with its luxury homes.
Property agent Lambert Bezuidenhout said the majority of sales were about the R20m mark for completed houses, with sales of more than R35m and upwards not uncommon.
“Covid-19 has brought with it the notion that we might be living with it for some time to come, which implies that lockdowns and ‘work from home’ will affect a significant portion of the high-end buyer population.
“As a result, we’ve seen a trend towards larger properties – even in flat sales – to accommodate the work-from-home way of life. Lifestyle estates such as Steyn City, with its diversity of homes, offer an abundance of outdoor space, facilities and activities, which also greatly enhances flat living.
“Buyers believe that if they are going to be in lockdown, it should be in a space that facilitates some form of normality.”
Pam Golding Properties area principal for Durban Coastal Carol Reynolds said some buyers seeking privacy and palatial homes preferred free-standing mansions because they were not governed by the restrictions that arose in gated communities.
“For this reason, half our sales concluded with high net-worth buyers comprise large free-standing mansions.
“As the suburb itself is secured by multiple security patrols, with large homes and expansive gardens, upper Durban North continues to attract affluent purchasers who seek privacy above all else.
“Estates are always popular, but often size and height restrictions limit options for the mega-wealthy who prefer to have freedom of choice in terms of size and design.”
Umhlanga property expert Gareth Bailey said movement in this upper price bracket had been split equally between sectional title schemes on the beachfront or within gated estates, and free-standing homes not within estates.
The pandemic has boosted demand for more space and greener environments.
— Samuel Seeff
“Certainly the trend is towards gated estates and sectional title, especially on the front line of the beachfront. It really comes down to a lifestyle choice for buyers.”
Further north in the Ballito area, in Zimbali Coastal Estate and Simbithi Eco Estate, homes frequently change hands for well in excess of R10m and even upwards of R18m.
Samuel Seeff, chairperson of the Seeff Property Group, has also seen a “notable uptick” in the luxury market above R10m to R20m-plus super luxury sector of the property market.
“We have concluded a number of high value sales above R20m.
These include R40m and R36m in Fresnaye, four sales in Camps Bay (R32.38m, R25.55m, R22,5m and R21.5m), R20.2m in Bantry, R45m at the Waterfront, R23.5m in Bishopscourt, R20m in Constantia Upper, R55m in Plettenberg Bay (one of the highest prices) and R24.5m in Zimbali.
“After an initial quiet period after the onset of the Covid-19 pandemic, it seems that wealthy buyers globally are looking for better surroundings to spend their lockdown periods in.
“Most notably, areas such as the Atlantic seaboard and southern suburbs have been busier during the first part of the year compared to the last three years.
“While the top end revival of the market is spearheaded by foreign buyers, it is also South African expats who are showing confidence.
“The pandemic has boosted demand for more space and greener environments, but also for coastal homes, and we see for example higher demand for KZN’s south coast, the west coast (due to the proximity to Cape Town), Hermanus and the Overberg and especially for lifestyle estates across the country, from Pretoria East, Centurion, Hartbeespoort to Zimbali and the Cape winelands,” said Seeff.
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