Where Millionaires Live In South Africa: Changing To Small Cities
Paarl, Franschoek and Stellenbosch along South Africa’s Wine Route were the fastest growing areas for South Africa millionaires, with numbers rising by 38 percent from 2007 to 2015, according to New data published by advisory firm New World Wealth, BusinessTech reported.
Along with the wine route, the Garden Route also performed well, showing a 26 percent increase of millionaires living there from 2007 to 2015.
By comparison, South Africa’s two largest cities, Johannesburg and Cape Town, saw a decline in the number of millionaires over the same period.
The New World Wealth 2016 report shows where wealthy South Africans live by cities.
It defines millionaires or high-net-worth individuals (HNWIs) as people with net assets of US$1 million (14.5 million rand) or more.
Johannesburg is home to the largest percentage of South African millionaires at 44 percent. There are also large populations living in Cape Town (18 percent), Pretoria (7 percent) and Durban (7 percent).
A large number of Johannesburg millionaires moved to other parts of the country or out of the country, according to New World Wealth. Cape Town millionaires were hit hard by the drop in local property prices relative to the U.S. dollar.
Property in South Africa is now dramatically less expensive for foreign buyers than four years ago, according to GlobalPropertyGuide. Since July 2011 the Trade-Weighted Rand Index fell 47.8 percent to December 2015, according to First National Bank. The rand fell from US$ 1 = ZAR 6.76 to US$ 1 = ZAR 14.40 today.
The business and financial heart of South Africa, Johannesburg is home to Sandton, considered Africa’s richest square mile. Financial services, basic materials and construction have given rise to millionaires there, BusinessTech reported.
Considered to be the mother city of South Africa, Cape Town has produced millionaires from real estate, financial services (especially fund management), retail and tourism.
The capital of South Africa, Pretoria-based millionaires got rich from basic materials, manufacturing and financial services.
The commercial hub of Kwazulu Natal, including Umhlanga, nurtured millionaires from pharmaceuticals, healthcare, construction and transport.
The Garden Route is a major vacation and retirement destination that includes George, Knysna, Plettenberg Bay, Wilderness, Hermanus and Keurbooms.
Paarl, Franschoek and Stellenbosch are located just outside Cape Town. They are known for their winelands and mountain scenery.
Other notable areas for millionaires include Bloemfontein, Port Elizabeth and East London plus smaller affluent towns such as St Francis Bay and Kenton-on-Sea, according to BusinessTech.