Real Estate Investor March 2023 Edition | Page 126

Luxury sector
WEALTH
Realty , the ongoing semigration trend taking place in South Africa and globally makes it clear that people are buying into villages , towns and cities that offer more than just the ideal home . “ Buyers investigate what amenities areas offer and how an area can meet their expectations of a new , secure lifestyle with ample service delivery . We are seeing a new trend where communities are stepping up where municipalities are failing , to create the functioning conditions that residents desire ,” says Goosen .
“ When municipalities operate within the expectations of residents like , for example , in Cape Town , Geoerge Plettenberg Bay , Hermanus , McGregor and Greyton ( all of which are in the Western Cape ), we are seeing a simultaneous semigration trend where one of the main attractions to an area is the functioning municipality , backed by solid residence associations keeping the city or town in pristine order ,” says Goosen .
Unfortunately , in some instances municipalities lack funds and resources .

Luxury sector

Nowhere is this better demonstrated than when you compare Cape Town and the Johannesburg / Sandton area . There has basically been slow movement above the R10 million price band for the last 10 years and upper price limits are not moving at all .
Even in the Cape , Seeff adds that despite the record number of sales above R20 million in the 2022-year across the Cape Town Metro last year , upper price limits have remained more or less the same as it was five years ago .
It is notable that more properties sold above R20 million in Stellenbosch ( 10 sales with a combined value of about R330.6 million ) over the last year compared to Sandton / Johannesburg where just 7 sales worth under R194 million were recorded .
The upper end sales in the Johannesburg / Sandton areas were also mostly in the lower R20 million range with only a single high value sale of R50 million ( in Steyn City ). The highest price achieved in Sandhurst , reached only R30 million , well below what we should expect for what is one of the two top suburbs on the continent .
In Cape Town too , sales are mostly in the lower R20 million range despite a record 120 properties worth a combined R3.7 billion sold above
64 MARCH / APRIL 2023 SA Real Estate Investor Magazine