There’s plenty of action in Joburg’s luxury property market, says Luxury Portfolio CEO, Rory O’Hagan.
'Out-think, out-market, outsell', is the approach which the property group took over the past months which has equipped it to secure more than R284m worth of luxury homes in high-end areas of Hyde Park, Sandhurst, Melrose and more.
Luxury Portfolio CEO believes that their success is followed by their positive attitude and perseverance despite the apparent 'doom and gloom' predictions regarding the Johannesburg's real estate market.
According to research by Knight Frank and New World Health, there are already more than 40 000 dollar millionaires in South Africa, half of which are living in Johannesburg.
This research provides confidence that while property markets may fluctuate, the luxury property market will expand, along with the number of wealthy individuals living in South Africa.
The so-called 'Manhattan of Africa' is what Sandton is for its inhabitants and provides increasing banking and financial capital in the global context, despite South Africa's economic depression.
The pool of South African millionaires is expected to expand to 52 000 by 2025, along with foreign entry into the country which brings along business opportunities, notes O'Hagan.
R10m to R15m is regarded as the popular price range for potential buyers for luxury homes in Johannesburg, adds O'Hagan and notes that they have continued to eagerly market their listings in South Africa as well as through their international affiliation with Leading Real Estate Companies of the World.
High-end buyers are moving away from owning large areas of land and are instead opting for homes which offer security and convenience, says O'Hagan. This is apparent in high demand luxury cluster homes in areas such as Hyde Park, Atholl, Inanda, Illovo, Dunkeld, Bryanston and Morningside.
Correspondingly, home owners in these luxurious areas are more eager to sell, in the months since the Cabinet reshuffle and downgrades by ratings agencies.
“This means that there is more supply now to meet demand", says O'Hagan.
According to Deeds Office, the average house sale price in opulent suburbs has dropped between 10% and 12% in the past months.
“By far the majority are looking to sell quickly so that they can move on and pay discounted prices themselves for more expensive homes that they expect will show exceptional value growth as SA moves past the current political turmoil and as the economy recovers and expands over the next few years", concludes O'Hagan.