Guiding consumers since 2009

Super rich home buyers shrug off rate hikes

By Staff Writer

By Xolile Bhengu

Middle-income home buyers are going downmarket because of rising interest rates, but the super rich, it seems, are not feeling the pinch.

Aylesford International recently opened an office in Cape Town that specialises in the sale of properties worth more than R40-million.

The company said South Africa has many individuals who have done well and, though it was not a large market, it was not uncommon to find someone buying a property for R80-million.

But Aylesford said many of the buyers of property worth more than R50-million were foreigners.

Sol Kerzner has announced that his company is to build three luxury apartments across the top two floors of his new R1-billion hotel on the marina at Cape Town’s V&A Waterfront.

Scheduled for completion next year, the 700m² duplex apartments, with a price tag of R100-million each, are the centrepiece of the latest development in South Africa by Kerzner’s luxury management company, One&Only Resorts. The company’s previous big development was the Lost City, built in North West in 1992.

Pam Golding Properties yesterday launched a R1-billion ultra- luxury development in upmarket Waterkloof, in Pretoria.

The development, The Embassy, is expected to set a high-water mark for properties in South Africa at R35000 per square metre.

It is the second-most expensive Gauteng residential development per square metre, after the March launch of Nedbank’s La Residence, a R1.6-billion development in Sandton that has a R40000 per square metre price tag.

The Embassy will be built on a 2ha site close to the Brooklyn Mall and will consist of 144 apartments, ranging in size from 140m² to 1100m². Prices are from R3.5-million to R25-million.

Sizwe Nxedlana, an economist for Standard Bank, said South Africa’s exclusive property areas were not showing strain.

“These are people who have the ability to purchase properties for cash,” he said.

“This market is usually influenced by wealthy individuals who receive high performance bonuses, are entrepreneurs or have exposure to wealth-creating mechanisms such as the stock exchange. — Additional reporting by Simpiwe Piliso

Recent Articles

Featured Are you in debt denial?

With debt levels increasing at 13% more than income levels, South Africans are more debt-stressed now than arguably ever before. This is iterated by the National Credit Regulator’s (NCR) report that nearly half of credit-active consumers in South Africa have damaged credit records. However, only a few seek the necessary help.

Why should you invest in a mutual bank?

Often when people think about banking, they always think about commercial banks. Mutual banks hardly come to mind, but these banks offer investment opportunities that are often overlooked.

 

The benefits of assessing investments regularly

It’s common practice to assess your personal finances annually. But how often should you check in with your investments? We found out from an industry expert when you should assess your investments and how to go about doing so.

Thinking of skipping your debit order payments? Don’t!

When you’re under financial strain, it’s easy to fall in the trap of skipping your payments thinking you’ll cover them next time. But the truth is there’s no guarantee that your next time will be different from your current. So, by postponing your payments you might be sabotaging yourself. Here’s why:

 

Deals

Free Juice at Botany Café

Price: R85
When: Daily
Where: Cape Town

Clicks Valentine’s Day Specials

Price: Available on request
When: Until 19 February
Where: Nationwide

Mozambik Valentine’s Dinner Special

Price: R550
When: From 14-16 February 202
Where: Nationwide