South Africa’s luxury property market continued to command high prices, with wealthy buyers showing strong demand for exclusive estates and sought-after suburbs despite broader economic pressures.
One of the latest high-value properties to enter the market was the Park Avenue Boutique Estate in Hout Bay, which was being offered for R114 million plus VAT.
The 8,527-square-metre estate was being marketed off-market before public advertising, with Seeff Hout Bay property specialist Ingred Killa saying its comprehensive hotel zoning made it a rare investment opportunity.
The estate includes a five-suite manor, four two-bedroom villas with private pools and a treehouse cottage with a wood-fired hot tub. It also has a spa, swimming pool, conservatory for weddings and events, commercial kitchen, staff facilities and 26 parking bays.
Killa said the property could be used as a luxury boutique resort, corporate retreat or wellness facility. The property is in an area where hotel-zoned properties were in short supply, while tourism growth was supporting demand for hospitality assets.
Double the value
Average property values in Hout Bay have doubled over the last five years, and high-end price ceilings have lifted considerably, with Seeff recently selling two residences for R40 million and R65 million each.
In Cape Town’s Southern Suburbs, luxury property prices had also risen sharply, according to Seeff. Average selling prices in Bishopscourt reached R30 million in the first quarter of the year, compared with about R11 million five years earlier.
Constantia Upper reached an average of R26 million compared with prices of around R12 million on average in 2020, while Kenilworth Upper reached R18 million from about R5.6 million five years earlier. Newlands averaged R14 million and Claremont Upper R11 million.
Seeff Southern Suburbs property specialist Francois Venter said the increases had occurred despite 17% fewer buyers compared with the previous year. He attributed the higher prices partly to a shortage of listings, with property stock in the areas having halved year on year.
Niche sales
The overall average selling price across the luxury Southern Suburbs stood at R19 million, according to Seeff.
Venter said sales were taking place relatively quickly in the niche market, with properties selling in an average of 32 days compared with a broader market average of 41 days. Selling prices were also about 2% below asking prices.
Luxury demand was also increasingly being directed towards Gauteng’s gated estates.
According to Lightstone data cited by Seeff Property Group, estate properties accounted for 16.7% of transactions in Gauteng but 28.6% of the value of all transactions, worth more than R35 billion.
Only 4.14% of properties across the Gauteng market sold for more than R4 million, compared with 11.2% of estate properties, while the average estate transaction price was R2.37 million, about 76% higher than Gauteng’s overall average of R1.3 million.
Security demand
Seeff chairman Samuel Seeff said estates were increasingly dominating the premium market because of security, infrastructure, amenities and lifestyle offerings.Luxury estate homes in Gauteng could range from R15 million to R60 million and more.
In Sandton, sales of up to R40.25 million had been concluded in Bryanston, while properties had sold for R27 million in Inanda, R25.5 million in Morningside and R20 million in Sandown.
Dainfern Golf Estate had recorded sales up to R14.54 million this year, while homes in the estate ranged from about R4 million to R25 million.
Other premium estates were commanding even higher prices. Blair Atholl Golf & Equestrian Estate near Lanseria had architectural homes ranging from R10 million to R67 million, while Mooikloof Equestrian Estate in Pretoria East had properties ranging from about R6 million to R55 million.
In Centurion, Midstream Estate had average house prices of about R4.5 million, with high-end properties reaching more than R20 million.
Water on tap
Seeff said estate living had increasingly appealed to buyers seeking security and reliable infrastructure, with many estates also offering schools, recreational facilities and independent water and energy infrastructure.
The trend extended beyond Gauteng and Cape Town.
In the Western Cape, estates in Stellenbosch, Paarl and Franschhoek had attracted high-net-worth buyers, with properties selling for more than R20 million. In Hout Bay, estates such as Kenrock, Ruyterplaats and Tierboskloof had recorded sales of up to R24 million.
On the KwaZulu-Natal North Coast, estates including Zimbali, Simbithi Eco-Estate and Mount Edgecombe Country Club Estate were benefiting from demand for secure coastal living.
Seeff said the growing appeal of estates reflected a wider preference among affluent buyers for security, lifestyle, privacy and reliable services, with both local and international buyers active in several of the country’s luxury markets.
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