South Africa’s small towns of Zinkwazi, Greyton, Tulbagh and Keurbooms are set to become the next hotspots for wealthy South Africans in search of second homes, this is according to New World Wealth report.
Zinkwazi on the north coast of KwaZulu-Natal is a small beach town which has benefited from the construction of King Shaka International Airport in nearby La Mercy.
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Greyton, A small town located in the Overberg area of the Western Cape, is emerging as a second home hotspot for Cape Town millionaires. Tulbagh located next to Ceres is one of the most picturesque valleys in the Western Cape with Keurbooms, located nearby Plettenberg Bay.
Lisa Bathurst, director of Cape Town based property company Hurst & Wills says, second homes are becoming increasingly popular, both amongst local and foreign buyers.
“Many South Africans have always had ‘family homes’ in holiday resorts and estates that are used by multiple family members or for Christmas getaways,” said Bathurst.
“However, the trend now is to have multiple homes covering an array of lifestyle preferences. For example, those living in Cape Town, often opt for a wilderness bush retreat or second home in the Winelands, to escape the wet Cape Town winter. Also road and air travel is more viable than ever making more use of second homes and therefore justifying their cost."
Bathurst added that, for many, the investment potential is a major draw.
“With holiday home rentals becoming more popular and an annual increase of overseas visitors, many of these second homes can provide a tidy income, when not being used by their owners,” she added.
“Alternatively, I've seen many clients opting to rent out their main residence over peak holiday season, and that is made much more viable when they have their ‘second’ home to go to.”
Currently, the top second home hotspot for super-rich in South Africa is Plettenberg Bay (“Plett”) with just over 260 multi-millionaires having second homes there.
Plett also boasts over 120 homes valued at R20 million or more, the highest of any town in SA with the exception of Johannesburg and Cape Town (source: New World Wealth).
Other major second homes hotspots for super-rich in SA include: Umhlanga, La Lucia, Knysna, Stellenbosch, Franschoek, Hermanus, Zimbali (Ballito), Fancourt (George), Pezula (Knysna) and Wilderness.