With a total wealth of $235 billion, Johannesburg is Africa’s wealthiest city. This is according to New World Wealth’s recently published annual wealthy cities review and most of this wealth is concentrated in just four select suburbs: Sandhurst, Houghton, Hyde Park and Westcliff.
“These suburbs have always been sought-after and I doubt this will change in the near future,” says Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg.
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“They are home to renowned political and government officials and prominent captains of industry who appreciate the exclusivity, privacy and security these suburbs offer.”
Sandhurst
“Not only is Sandhurst one of the top five wealthiest suburbs in South Africa, but it is also home to some of the most expensive real estate in the country with Coronation Road and Oxford Avenue being the premium addresses,” says Odendaal.
“Whilst the property landscape in Sandhurst hasn’t changed much in recent years bar the addition of a couple of small, exclusive developments, one aspect that has changed significantly is the investor demographic.
“The suburb is now very representative of the current top South African wealth profile with more and more of our political heavyweights, business entrepreneurs and captains of the industry choosing to live in Sandhurst.”
He adds that although 65% of existing owners are aged 50 or older, the fact that 45% of recent buyers are under the age of 50 is a clear indication of the changing demographic.
Lightstone data further reveals that this market has remained very stable since 2018, despite the economic downturn, political uncertainty and Covid 19.
“In 2019, the median price dipped slightly from R12.5 million to R11.25 million, but in 2020 when most luxury markets bore the brunt of lockdown, with the freehold median sale price actually increased to R13 million.”
Sandhurst has currently *27 new property listings, according to property24 Trends Data, with the average asking price for the area being R7.599 million. The average sale price per erf for 2020 was about R13 million, while Section Scheme Units for the same period is about R 6. 666 million.
Westcliff
Characterised by stately mansions and sprawling gardens, Westcliff offers some of the most distinguished properties for sale in one of Johannesburg’s oldest and most established residential suburbs.
Along the broad, tree-lined roads of Westcliff are a selection of historic Sir Herbert Baker homes, adding to the historic appeal of this gracious suburb which has the added benefit of being in close proximity to major arterial roads and Johannesburg’s CBD.
“Almost 67% of the homes in Westcliff are still traditional freehold properties and demand hasn’t slowed at all in recent years – in fact, according to Lightstone data, at R11.5 million, the median freehold sale price reached an all-time high this year.
“Freehold estate homes are also highly sought-after, with the four recent sales between June and August being at an average sale price of R8.5 million.”
Hyde Park
Whilst development has somewhat altered the character of Hyde Park which now includes more mid-level housing with 52% of the property landscape being sectional title, it remains one of the most sought-after addresses in the city.
“This is clearly evidenced by Lightstone data which shows that of the eight freehold sales during the past year at an average sale price of R14.275 million, four of these transactions occurred during the last three months ending 31 August at an average price of R15.3 million.
“Estate freehold properties are equally sought after, with 16 properties sold during the past year at an average sale price of R9.358 million.”
The broader spectrum of properties has also impacted this suburb’s resident demographic, with 60% of sellers during the past year being 50 years or older whilst 69% of the recent buyers were aged between 18 and 49.
According to Property24 Trends Data, Hyde Park has *47 new property listings with the average asking price for the area being R4.225 million. The average sale price per erf for 2020 was about R8 million, while Section Scheme Units for the same period is about R 2.317 million.
Houghton Estate
Regarded as one of the safest and greenest suburbs in Johannesburg and also long-time home of the late President Nelson Mandela, Houghton consists of Upper Houghton to the south, which is a National Heritage Area, and Lower Houghton to the north.
“Although around half of Houghton’s properties are still the grand and traditional freestanding homes on large stands of days gone by, the property landscape has begun to change and now includes opulent cluster developments of three or four units,” says Odendaal.
He adds that the more varied landscape has contributed to the Houghton market being more active than most high-end areas, with 61 of 126 total sales being sectional title scheme properties, whilst 44 were freehold, 10 freehold estate and the balance being land-only sales.
“It’s therefore no surprise that the sectional title media price shot up this year, from R2.85 million in 2020 to R4.275 million and, with the sought-after traditional homes becoming rarer, this year’s median freehold price of R6.019m is nudging 2015’s all-time high of R6.375 million.”
Houghton Estate has currently *56 new property listings, according to property24 Trends Data, with the average asking price for the area being R5.499 million. The average sale price per erf for 2020 was about R5.41 million, while Section Scheme Units for the same period is about R 1.25 million.
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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.
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