Daily Archives: November 5, 2025

Booming coastal property market drives record land prices in this one emerging wealth belt in South Africa

South Africa’s national housing market recovery continues apace, lifted by improving economic sentiment, fuelled by a series of interest rate cuts – with the prospect of further rate relief, and supported by contained inflation, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

“The outlook is further buoyed by an anticipated reduction in fuel prices and, notably, the country’s exit from the Financial Action Task Force (FATF) grey list, all of which is positive for investor confidence in general.”

National house price growth remains on an upward trajectory, rising to +4.0% in September 2025, according to the Pam Golding Residential Property Index, with the Western Cape continuing to lead with annual growth of +7.9%.

Planned residential building activity is also rebounding, driven by a marked increase in approvals for flats and apartments, particularly in prime Western Cape markets.

“In the luxury and ultra luxury segment, the Western Cape and Cape Town in particular continues to experience high levels of demand, particularly in the City Bowl and Atlantic Seaboard, where achieved property prices of R50 million and even beyond R100 million are no longer unusual exceptions,” said Golding.

Prices are surpassing expectations amid significant interest from a mix of local, national, and international buyers, he added.

Pam Golding Properties reported R634 million in sales within just two days of launching Beachwood Coastal Estate, a beachfront development on Durban North’s beachfront.

This milestone set a new benchmark for land values in the province, achieving over R10,000 per square metre. Purchasers included primarily local buyers, as well as buyers and investors from upcountry, Dubai, and Tokyo, with villas selling for up to R25 million, apartments around R15 million, and vacant erven reaching R20 million for 1 700sqm.

The same sized plot in in Sibaya Precinct in Umhlanga is on the market for R15 million.

At R10,000/m², even a modest 550 m² stand costs R5.5 million, while a larger 1 000 m² coastal erf would reach R10 million — before construction costs.

Dr Golding said in Johannesburg the luxury market appears to be slowly but surely reviving, with high-net-worth buyers originating mainly from within South Africa and other African nations.

“These buyers are drawn to secure, amenity-rich estates or to established suburbs offering boomed, access-controlled streets that combine strong community appeal with enhanced security, without the constraints of estate living. Proximity to leading schools, business hubs, and lifestyle amenities remains a key consideration, with Sandton, Fourways, and Midrand standing out as preferred nodes.”

Here’s what’s driving change in South Africa’s property market

The pace of technological change in the global property industry has never been faster.

From Artificial Intelligence (AI) and virtual tours to blockchain and digital transactions, innovation is reshaping how homes are marketed, bought, sold, financed, and managed.

Meridian Realty principal and founder Antonie Goosen noted that Virtual tours now allow prospective homeowners to explore listings from anywhere in the world, offering a realistic, immersive walkthrough without leaving the couch.

This shift has made property viewing more efficient, particularly for remote or international buyers, and has opened up new opportunities for cross-border investment and semigration.

The global VR property-tour market is projected to reach $80 billion by 2025, with more than 1.4 million real estate professionals already using the technology. For South Africa, this presents an opportunity to showcase premium homes to international investors who cannot attend physical viewings, Goosen pointed out.

AR technology takes the experience even further. It enables buyers to visualise a property with different furnishings, finishes, or layouts — creating an emotional connection that static photographs can’t match.

Studies show that listings with AR content can attract four times more buyer enquiries and sell up to 75% faster.

“This technology helps buyers visualise their future lifestyle,” saidGoosen. “They are not just looking at a house, they are imagining a home.”

Through tokenisation, physical properties can be divided into digital shares that investors can trade like stocks, offering liquidity in what has traditionally been an illiquid asset class.

“This creates liquidity in what has traditionally been an illiquid asset class,” explained Goosen. “It makes it possible for smaller investors to participate in the property market, reduces transaction costs and improves transparency through the use of smart contracts.”

Analysts predict that tokenised real estate could represent 15% of global property transactions by 2030, amounting to a potential $3 trillion market.

Although South Africa has yet to adopt tokenisation widely, experts say it’s only a matter of time.

“The technology already exists,” said Goosen. “The question now is when the regulatory and financial environment will catch up. Once it does, tokenisation could fundamentally change how we think about property ownership and investment.”

“Some reports suggest that virtual-tour adoption in the property sector has increased by nearly 200% in just a few years,” said Goosen.

Another innovation reshaping the market is fractional ownership – a co-ownership model that allows several buyers to purchase and share the use of a high-end holiday home. It provides access to luxury properties that might otherwise be unaffordable while ensuring premium homes don’t sit vacant for most of the year.

“Fractional ownership platforms are growing rapidly across the world,” said Goosen. “It is a smart and sustainable way to unlock value in the leisure property market. As South Africans become more comfortable with shared-economy models, we can expect to see increased interest in co-ownership opportunities.”

Of all the emerging technologies, Artificial Intelligence is proving the most transformative. AI tools can analyse buyer behaviour, automate listings, generate content, qualify leads, and even predict which properties are most likely to sell next.

“AI will soon be the invisible co-pilot inside every successful agency,” Goosen stated. “It will handle repetitive tasks like data entry, marketing scheduling and lead follow-ups, allowing agents to spend more time on what truly matters, building relationships and closing deals.”

Despite all the innovation, Goosen believes that real estate remains, at its core, a people business. “The agencies that will succeed are those that combine data-driven efficiency with empathy, communication and personal service. The future is not something we are waiting for — it is already here, and it is reshaping our industry in extraordinary ways.”

South Africa rides global surge in luxury property sales

Knight Frank data shows luxury housing markets buoyed by demand in Dubai, New York, Los Angeles and Hong Kong.

Global sales of super-prime homes – properties priced above US$10 million – rose sharply in the second quarter of 2025, extending the market’s upward trajectory amid resilient wealth creation and strong international capital flows.

According to Knight Frank’s latest data, 590 transactions were recorded across 12 major global cities between April and June – up 19% from the 497 deals completed in the same period last year.

The aggregate value of these sales climbed even faster, jumping 33% year-on-year to $11.8 billion, compared with $8.9 billion in Q2 2024.

Putting it into a South African perspective, luxury property sales continue to scale new heights. The Pentagon on Nettleton Road in Clifton was reportedly sold for R157 million recently one of the country’s highest residential transactions to date.

Other listings in a similar price range currently on the market include a five-bedroom home in Pinnacle Point Golf Estate near Mossel Bay, priced at R179.9 million, and a five-bedroom residence in Fresnaye, Cape Town, listed for R160 million.

In the first nine months of 2025, a total of 146 homes valued above R20 million were sold nationwide, the majority of which were in Cape Town. This already surpasses the total number and value of luxury sales recorded during the whole of 2024 – a clear indication of the market’s continued strength.

Fifteen sales were recorded above R50 million. Among this year’s record-breaking transactions are four properties sold for more than R100 million — two in Clifton and two in Constantia — highlighting sustained demand at the very top end of the market.

Dubai once again dominated by transaction count, with 143 sales worth $2.6 billion, cementing its position as the world’s most active super-prime market.

However, New York closed the gap significantly, recording 120 deals valued at $2.9 billion – making it the largest global market by total value for the first time since late 2021.

Knight Frank attributed the city’s resurgence to renewed demand for luxury condominiums and high-end townhouse resales.

In the US, Los Angeles posted a major rebound, logging 73 deals worth US$1.6 billion – its strongest quarterly performance since early 2021 – driven by brisk activity in Beverly Hills and Malibu.

Hong Kong also saw a strong comeback, with 53 transactions totalling $1.0 billion, reflecting pent-up demand despite ongoing macroeconomic headwinds.

London recorded 45 deals valued at $900 million, down 13% year-on-year, as ongoing tax changes continued to dampen activity.

However, the city’s Q2 performance improved on Q1 levels, suggesting that opportunistic buyers are beginning to capitalise on lower prices in the capital’s prime market.

Knight Frank cautions that while momentum remains robust, the global super-prime sector faces a more complex macroeconomic landscape.

Trump’s proposed tariffs remain a key unknown, but so far the global economy appears to be looking through them, the report noted, adding that wealth creation and cross-border capital flows remain resilient.

In the UK, continued tax pressures are expected to weigh on performance, although softer pricing may attract overseas buyers. Hong Kong’s luxury market is forecast to extend its revival through the second half of 2025, while Los Angeles is likely to sustain its rebound on the back of strong single-family home demand.

Perhaps the most notable trend, however, is the return of New York. After several muted years, the city’s super-prime sector “is firmly back in contention and may well challenge Dubai’s dominance by year-end,” Knight Frank said.

“The global super-prime market continues to surprise on the upside,” said Liam Bailey, Global Head of Research at Knight Frank. “Dubai holds its lead, but New York’s resurgence and strong rebounds in Los Angeles and Hong Kong highlight the depth and diversity of demand. While investors will need to navigate a more complex macroeconomic environment, we expect momentum to be sustained,” said Liam Bailey, global head of research at Knight Frank.