DURBAN - The South African Wealth Report for 2018 by New World Wealth showed the spending habits of South Africa's wealthiest residents.
According to the report, the spending habits of wealthy people in South Africa can be broken down into five different categories.
These five categories are art, classic cars, luxury sector, travel and dining and local luxury brands.
African art accounts for $1 billion of the total global top-end art market. $450 million worth of African art can be found here in South Africa.
South African fine art prices have increased by 28% over the past ten years in terms of US dollars. Leading South African artists include names like Irma Stern and Hugo Naude.
The prices for art from South African artists can range from hundreds of thousands of rands for a Hugo Naude piece to millions of rands. Irma Stern had two of her paintings sell for R21 million and R17 million respectively.
The South African Wealth Report for 2018 showed that the global market for classic cars is valued at about $5 billion.
In South Africa, classic car auctions regularly take place in Johannesburg, Cape Town and Knysna.
Some classic car brands that are popular with High Net Worth Individuals (HWNIs) in South Africa include the Ferrari 250 GTO, the Porsche 550 Spyder, the Aston Martin DB4 and the Lamborghini Countach
The luxury sector of South Africa produced revenue of approximately $2,2 billion (R26,64 billion) in 2017, in 2016 the sector generated revenue of $2,3 billion (R27,85 billion).
The items that make up the luxury sector include luxury cars, luxury clothing and accessories, luxury watches, private jets, yachts and luxury hotels.
Luxury hotels are the biggest piece of the overall luxury sector in South Africa.
Travel and dining
The main destinations for the wealthy people include Kruger Park area, Cape Town, Johannesburg, Umhlanga and the Garden Route.
Popular hotels in South Africa for the wealthy include the Lost City, 12 Apostles, the Oyster Box, the Beverley Hills, the Westcliff and the Cape Grace.
Franschhoek is considered to be the "fine food capital" of South Africa with more than 20 highly rated restaurants in the small town. Franschhoek is also home to the Tasting Room a Michelin starred restaurant.
Local luxury brands:
Although the South African luxury goods market is dominated by foreign brands there are a few South African brands that make luxury and semi-luxury goods.
Some of these brands include Ardmore Ceramics, Carrols Boyes, RainAfrica and Avoova.
The sector is expected to experience strong growth over the next 10 years.
- BUSINESS REPORT ONLINE