Posh suburbs in the money

Johannesburg - Data from banks this week confirmed middle- and lower-income suburbs were losing value, but the well-heeled and their even snootier brethren - the super-rich - are finding their leafy burbs are paved with gold.

Figures gleaned from property research and valuation group Lightstone show that house prices in eight of South Africa's 12 priciest suburbs continue to rise.

Johannesburg is now pipping Cape Town in the capital growth stakes, with exclusive Hyde Park ranking as the country's top-performing upper-end suburb.

According to Lightstone's data, the average sales price in Hyde Park in first-half 2009 was a staggering 102% higher than that achieved in 2008.

Lightstone's average prices are based on deeds office figures, while its mean valuations are determined by the estimated market value of each property in a specific area.

Another one of Johannesburg's big-ticket suburbs, the old money enclave of Westcliff, came in at second spot, with average sales prices up 85% over the same time.

Golf estate Zimbali on the KwaZulu-Natal north coast ranks as South Africa's third best performing luxury suburb, with 2009 prices 50% up on 2008.

Atlantic for super rich

House prices on the Atlantic seaboard, still the number one playing field of the super rich, also continue to record solid increases. In Clifton and Camps Bay average sales prices were up 16%, while Bantry Bay recorded a hefty 34% growth.

Johannesburg's Sandhurst is also still recording double-digit growth, with first-half 2009 values 25% higher than in 2008. Lightstone ranks the latter as South Africa's most expensive suburb in which to live, with a current mean estimated value of R13.1m.

Other suburbs that count among South Africa's top five most expensive areas, according to Lightstone, are all located in the Western Cape.

They include Clifton, where the average house has an estimated market value of R12.6m, Steenberg Golf Estate in Cape Town (R9.97m), Pezula Private Golf Estate in Knysna (R9.3m) and Llandudno in Cape Town (R9.6m).

It has to be noted, though, that the sharp jump in average sales prices in some of these luxury suburbs is the result of fewer, but more expensive properties being sold in 2009 compared to 2008. This suggests that some upper- income buyers may be using current market weakness to trade up.

Hole in one

A high volume of land (rather than a completed home) transactions could also cause significant price swings. That is particularly true for golf estates that are still partially undeveloped.

Lightstone director Andrew Watt said average sales prices can be skewed from one year to the next depending on the type, size and number of properties sold.

However, it remains a useful indicator of price movements and is widely used across the globe to gauge housing trends.

- Fin24.com