WealthInsight, the leading global research company into high net worth individuals (HNWI), reveals that South Africa has the highest number of millionaires in Africa. In 2011, there were just over 44,700 millionaires in the country, with a combined wealth of US$188 billion, accounting for roughly 25% of South Africa’s total individual wealth (US$740 billion). Included in this total are 543 multi-millionaires, each with wealth of over US$30 million.
By 2013 there were 46,883 core millionaires in South Africa, with a combined wealth of US$127 billion. The number of core HNWIs increased by 21.7%, from 38,522 in 2009 to 46,883 in 2013 and the number of core HNWIs in South Africa is expected to grow by 16% reaching 56,447 by 2018. The country also saw a significant increase in foreign direct investment increasing by 163% between 2009 and 2013.
Gauteng is home to the largest portion of HNWIs with 261 multi-millionaires. There are also sizable South African multi-millionaire populations in Cape Town (103 multi-millionaires) and Durban (31 multi-millionaires).
Pam Golding Properties has long been the recognised residential property experts in the top end of South Africa’s property market with owners of luxury properties more often than not turning to this tried and trusted brand to advise on the selling and buying of these homes.
“It goes without saying that a residential property represents a significant investment, particularly at the top end of the market,” says Retha Schutte, regional executive of the Pretoria and Centurion region of Pam Golding Properties (PGP). “Property buyers and sellers in the luxury league of R5 million and above, appreciate a bespoke service such as that offered by PGP.”
“No matter what the size and value of the home we always endeavour to achieve the best possible price, usually within the shortest possible time period. For some sellers it is also important to find a buyer who they consider a good ‘fit’ for their home, someone who shares their values, and will enjoy the property and the lifestyle it confers,” notes Schutte.
It is not surprising then that those who are looking to take their homes to this market are, with few exceptions, exceedingly serious about concluding a sale, and make it their business to understand all aspects of their local residential property market.
“This is one of the reasons why those who are taking their homes to market are turning to property consultants with experience and integrity,” observes Schutte. “Why would one do anything less when placing something so valuable as a high-end property on the market? Sellers today want expert advice, as well as the best possible support through the selling process, which is not without its pitfalls for those less informed about the complexity of property transactions,” observes Schutte.
It is also why PGP Pretoria has launched a new initiative called the Pretoria Luxury Collection, which will see the marketing and sale of homes being personally managed by Schutte herself. Schutte has been with PGP for 18 years and was an award-winning agent before she took over the running of PGP’s Pretoria region.
Schutte says that property owners in the Pretoria and Centurion areas who wish to take their home to market for R5 million or more are invited to contact her directly. These would-be sellers will be assured of her personal attention. She says that inherent in the essence of the PGP brand and underpinned by the company’s philosophy is the promise to create a “sense of comfort” for clients. This Luxury Collection initiative will provide the assurance that the decisions made by would-be sellers are as well informed as possible.
Schutte says there are many areas in the Pretoria and Centurion property markets that are performing strongly, even in the current subdued economic climate. Security and excellent amenities are of prime importance to residents, which helps explain why security and golf estates are in particularly high demand throughout the region. The rental market has continued to do well and has benefitted from an ongoing demand from corporate, embassy and foreign mission staff.
“Some sellers are not convinced of the benefits of granting property agents sole mandates on their properties,” says Schutte. “In my view a sole mandate without a doubt ensures a better marketing plan, a more concerted effort, wider media exposure and a much greater level of commitment and accountability from the agent. Competition is healthy, but it needs to be between interested buyers rather than among estate agents.”
“PGP always seeks to link appropriate buyers to sellers from its considerable data bases of contacts. Our highly-developed marketing support system and 37 years of experience, allow us to provide an incomparable professional property service to clients,” concludes Schutte.