In 2025, buying a R20 million home in South Africa remains a rarefied financial feat—available only to a small slice of the country’s income-earning elite.
While luxury properties continue to attract attention from both local and international buyers, new data highlights just how exclusive this market truly is.
To purchase a R20 million home, buyers often make a substantial upfront payment—and in many cases, the full amount is paid in cash.
However, assuming a conventional scenario with a sizeable 20% deposit (R4 million), the remaining R16 million would be financed through a home loan.
At a 10% interest rate over 20 years—a standard rate in the current market—the monthly repayment would amount to approximately R148,000.
This figure excludes other significant expenses such as property taxes, levies, insurance, and maintenance.
According to financial best practice, no more than 30% of gross monthly income should go toward home loan repayments. This means a buyer would need to earn about R493,000 per month—or roughly R5.92 million annually—to afford a home of this value.
Given South Africa’s 45% marginal tax rate on high incomes, even this figure likely underrepresents the true pre-tax income required to comfortably service such a loan.
High Earners: A Tiny Demographic
According to recent SARS data, approximately 11,380 South Africans earn more than R5 million per year, out of 7.4 million registered taxpayers. A further 330,000 individuals earn between R1 million and R5 million annually.
This indicates that fewer than 0.2% of taxpayers are realistically positioned to afford homes priced at R20 million and above.
Luxury Market Trends
Despite the narrow buyer pool, demand for high-end properties remains strong. According to the Seeff Property Group, 144 properties in Cape Town priced above R20 million were sold in 2024, totalling R4.4 billion in value.
In Cape Town alone, 9% of 900 homes sold across the Atlantic Seaboard and City Bowl were priced above R20 million.
The exact number of such properties outside Cape Town remains unclear, but 2017 data estimated that around 2,400 homes were worth R20 million or more – 580 of them in Johannesburg.
This number has likely increased significantly, driven by rising property values and growing interest in luxury real estate.
While Cape Town continues to dominate the high-end market, other affluent areas across the country have emerged as hotspots for wealthy buyers. These include Stellenbosch and Somerset West in the Western Cape, the Garden Route, and parts of KwaZulu-Natal such as Umhlanga and Ballito.
In Gauteng, Sandton, Houghton, and Waterkloof remain top-tier residential nodes, attracting both local and international investors.
Real estate platforms show active listings far beyond that price point. Pam Golding Properties currently lists 438 properties over R20 million—though this includes commercial properties and farms—while Seeff has 215 homes for sale exceeding the threshold.
Foreign Buyers and Market Viability
Foreign interest also continues to drive this market, particularly in Cape Town’s premium suburbs. Roughly 32% of high-end property sales on the Atlantic Seaboard involve international buyers, underscoring the city’s global appeal.
In short, the R20 million home market is a niche, high-barrier space largely occupied by ultra-high-net-worth individuals and foreign investors. With very few South Africans earning the income required to finance such purchases, most transactions are cash-based or funded by wealth rather than salary.
For most South Africans, the dream of owning such a home remains exactly that—a dream. But for a select few, the combination of wealth, access to capital, and strong luxury property performance makes this market not only viable but thriving.
