There is an increased interest in SA’s luxury residential property market

Amid global uncertainty, South Africa’s luxury, high-end residential property market is experiencing elevated interest among both international and local high net worth buyers - most notably in sought-after locations around the country, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Says Dr Golding: “While this is an ongoing trend, since the start of the year (2024) Cape Town – with its appealing natural surrounds - features prominently, experiencing a surge in interest and enquiries from international residential property buyers, with individual home sales in the Southern Suburbs and Atlantic Seaboard to both local and global purchasers exceeding R20 million and ranging even northwards of R90 million. These range from apartments overlooking the sandy white beaches of areas such as Clifton and Camps Bay, to the countrified tranquillity of Bishopscourt and Constantia, among others. A notable recent sale is a home in Constantia which achieved the full asking price of R54 million.

“Overseas buyers in these areas are still predominantly from traditional European markets, but now further prompted by geo-political issues which appear to have boosted sentiment in respect of the top-end residential property market in the Cape, coupled with the value offering when compared to global high-end markets. This trend is further fuelled by a steady stream of semigrators relocating permanently to the Cape from other regions as a lifestyle choice, with the Mother City’s R120 billion 10-year infrastructure investment programme and pro-active approach to reducing loadshedding providing further incentive – not to mention a host of lifestyle attractions.”

Indicative of the demand for residential property in Cape Town in general – across all price ranges – are Pam Golding Properties’ regional sales in the city comprising the Atlantic Seaboard - including the V&A Waterfront, and Southern Suburbs and Southern Peninsula for the month of February 2024 alone, where sales to the value of a record R618 million were concluded.

In the Cape’s Boland region, sought after among affluent home buyers and especially popular among UK purchasers as a permanent residential destination, recent sales transactions concluded by Pam Golding Properties include homes in prestigious Val de Vie Estate near Paarl sold for in excess of R25 million, and also upwards of R30 million.

Says Dr Golding: “The Western Cape’s Garden Route is another perennial favourite among high net worth residential property buyers. Post the December/January festive season we are seeing an increase in viewing requests from the higher-end international market, notably those wanting to relocate here from overseas. For example, in Knysna, we have enquiries from those looking to relocate from Switzerland, Belgium, Germany and America, as well as from South African purchasers.

“In Gauteng, we are seeing positive signs regarding confidence in the market in general, and currently dealing with high net worth buyers in all our top-end luxury areas regarding freestanding homes, including those in estates. Achieving high-end prices largely relies on the location and prestige of the specific address, and those that offer status, top-notch security, a luxurious lifestyle and in many instances, high-end amenities, do not face challenges in terms of demand. Interest in luxury, high-end residences is certainly on the rise, with a significant number of high-end enquiries particularly in areas such as Monaghan Farm, Blair Atholl, Dainfern Estate, Eagle Canyon, Serengeti Golf Estates, Eboste Golf Estate, The Neighbourhood, Atholl, Morningside, Sandhurst, Hyde Park, Westcliff and Dunkeld. We’re seeing notable interest from South African buyers, including expats who had emigrated to London but are now returning to South Africa. Furthermore, there is ongoing robust attention emanating from other African countries, including Kenya, Angola, Mozambique, Botswana and Zimbabwe.”

Adds Dr Golding: “In Steyn City in Fourways, we recently sold a 4 100sqm vacant plot for R18.5 million to a local Gauteng purchaser, who is building a permanent residence in a prime location. Of interest is that existing residents in this expansive, highly sought-after estate are very active in the market and always looking to acquire additional properties or to upgrade within the estate, which attests to the potential for sound return on investment. While there is mostly local interest at present, we recently had a visit from two American tour groups, which indicated that there appears to be considerable interest from some Americans to exit the USA. South Africa is becoming a more appealing destination to them, with property prices, the cost of living, and build quality seeming to be key factors.”

Dr Golding says in KwaZulu-Natal, La Lucia and uMhlanga remain sought after suburbs, particularly estates – where prices range from R7 million to over R20 million, with some spectacular homes in The Executive development in La Lucia priced in the mid-R20 millions. An impressive home currently on the market in the Signature development in Sibaya is on the market at R37 million.

“The luxury end of this market has been attracting interest from buyers based in Johannesburg as well as those based in countries like Dubai. Most are seeking modern homes, and as mentioned above, preferably in estates, so currently we are seeing more movement in estates like Hawaan Forest and Izinga, than we are in freestanding homes,” says Dr Golding.