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SA cities with the most millionaires

June 2, 2015

There were approximately 46 800 millionaires (HNWIs) living in South Africa as of December 2014, with combined wealth holdings of US$184 billion. 

These are the findings of New World Wealth’s latest report entitled The South Africa 2015 Wealth Report, with “millionaires”, otherwise known as “high-net-worth individuals” or “HNWIs” referring to individuals with net assets of US$1 million or more. 

According to New World Wealth analyst Andrew Amoils, Durban (including Umhlanga) is the top performing city for millionaires in SA. Millionaire numbers have grown by 200% since 2000, compared to national average growth rate of 135%. 

“Durban’s strong growth was fuelled by massive millionaire growth in the Umhlanga and La Lucia area, especially among the local Indian community,” he says. 

The north coast of KwaZulu-Natal is also becoming increasingly popular for the super-rich, especially in the second home market, says Amoils, and specifically “areas such as Ballito and Zinkwazi are new hotspots for investment”.

Johannesburg is still home to the largest portion of South Africa’s HNWIs (50%), with sizable populations living in Cape Town (19%) and Durban (6%). 

According to the research, there were 14 700 South African HNWIs from previously disadvantaged groups at the end of 2014, which equates to 31% of South Africa’s total HNWI population. 

Over the three-year forecast period, the number of South African HNWIs is forecast to grow by 19%, to reach approximately 55 500 by 2017. The report notes that growth is constrained by the current electricity crisis, increasing trade union involvement and a rising level of government regulation.

At the end of 2014, cash & bonds was the largest asset class for HNWIs in South Africa (30% of total HNWI assets), followed by equities (28%), real estate (20%), business interests (16%) and alternatives (6%). The only major asset excluded in the research was primary residences.

“Over the forecast period, real estate is expected to be the top-performing asset class, followed by equities. As a result, there will be a movement away from cash towards these asset classes going forward,” says Amoils.

Article from New24

Figures courtesy of New World Wealth

 

 

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