As the number of R20-million homes in South Africa increased, most of the people buying these home have paid cash for them.
This is according to Lisa Bathurst, the managing director of buyers' agents Hurst & Wills.
"Most sales have been cash, both by locals and foreigners, which shows confidence in the property market, despite the weak rand. In fact, foreigners splash out more because of it," Bathurst was quoted as saying by The Star.
"That, combined with the total property investment increase from R712m last year to R1.2bn this year, is incredible. I have seen in the past year a clear move towards status, brands and unashamed wealth, and this transcends into property purchases."
According to a report by New World Wealth, which provides information of the world's wealth sector, the number of R20m homes in South Africa has increased from 2100 to 2230.
According to the report, most of these homes can be found in Cape Town, with most of these homes to be found along the Atlantic seaboard. Cape Town had 813 homes in the R20m price range, with 538 homes in Johannesburg and 185 in Durban.
"Cape Town’s Atlantic seaboard suburbs dominate the list, along with Sandhurst and Hyde Park.
"Holiday hotspots such as Plettenberg Bay and Knysna also feature prominently," the New World Wealth report said.
"It is also interesting to note that a large percentage (more than 25 percent) of R20m homes are on secure estates, either golf estates or lifestyle estates. In particular, Zimbali and Pezula are prime estates for such homes."
Artcle courtesy of www.Iafrica.com
"If they haven't bought already, many of these potential buyers are paying extortionate day rates to rent prime real estate; R100 000 a day is not unheard of in the holiday season, and R20 000 a day is a good deal,"