Wealthy Africans seek second homes in swanky SA suburbs
In 2015‚ close to half of the sales in Dainfern Golf Estate‚ were to foreign buyers and nearly half of those were from Africa, Pam Golding Properties’ Jason Shaw says
SA’s swanky suburbs are in demand by wealthy Africans‚ who are following in the footsteps of their British and German counterparts when it comes to luxury real-estate.
A report by Sandton wealth intelligence company New World Wealth and AfrAsia Bank has found that a large number of African dollar millionaires are investing in property locally.
While UK buyers top the list for high-end real estate in SA‚ followed by Germany‚ the report shows that a large number of Africans are also buying homes in the R10m price range in other African countries‚ most notably SA.
The bulk of them come from Angola‚ Ghana and Nigeria.
"Residential property normally constitutes between 25% and 30% of the net assets of an average African high-net-worth individual. Popular properties for them include beachfront villas and homes in residential estates‚" said Andrew Amoils of New World Wealth.
Sandhurst‚ Hyde Park and Houghton in Johannesburg‚ as well as Cape Town’s "big five" luxury hotspots‚ namely Fresnaye‚ Bantry Bay‚ Llandudno‚ Clifton and Camps Bay‚ hold appeal for African buyers.
According to the report, SA’s private healthcare system‚ private schools‚ luxury residential estates‚ exclusive shopping malls and high-end food stores‚ are possible drawcards.
Jason Shaw‚ national sales executive for Pam Golding Properties said: "Investors from other African countries continue to show a strong appetite for residential property in SA‚ particularly in Gauteng. They are from across the continent with most frequent investors originating from Nigeria‚ Angola‚ Ghana‚ Uganda‚ Gabon‚ Kenya‚ Zimbabwe‚ Congo and Mozambique.
"Foreign investment in residential property in SA continues to be encouraged by the perceived weakness in the rand currency‚ which ensures that foreign buyers‚ and buyers from the African continent in particular‚ are able to achieve excellent value for money in SA.
"More traditionally‚ some high net-worth individuals are purchasing luxury seaside residential properties or other ‘lifestyle properties’ that not only provide them with a holiday destination or a second or third home‚ but‚ given the weak rand‚ represent an excellent means of diversifying their wealth portfolios and securing a sound long-term investment‚" Shaw said.
He said African buyers preferred modern and contemporary homes that afford an exclusive lifestyle.
Shaw said the bulk of these sales were second homes with prices ranging mostly between R5m and R30m.
"Dainfern Golf Estate‚ which has the largest expatriate community in an estate in the southern hemisphere‚ offers an interesting case study with regard to foreign and African property purchases. In 2015‚ close on a half of the sales in the estate‚ were to foreign buyers and nearly half of these were from the continent."