While most of the country’s dollar millionaires live in Johannesburg, Durban is producing millionaires at a faster rate than the country’s average “millionaire growth rate”.
This is according to the latest SA Wealth Report released by global research consultancy New World Wealth on Thursday.
The number of high net worth individuals (HNWI) with net assets of over $1 million (R12 million) has grown by 135%, from 19 900 in 2000 to 46 800 in 2014. This group of super-rich people holds a combined net worth of $184 billion (R2,2 trillion), representing around 31% of South Africa’s total individual wealth.
But while the national number of millionaires has grown by 135% since 2000, in Durban the number of über wealthy people has boomed by 200%, from 900 to 2 700.
In contrast, the number of HNWI has grown by 141% in Jo burg (9 700 to 23 400) and 128% in Cape Town (3 900 to 8 900).
During the same period, Pretoria’s wealthy population soared from 1 000 to 2 500, representing a 150% growth, while the number of super-rich in other major cities collectively grew by 111% from 4 400 to 9 300 individuals.
New World Wealth analyst Andrew Amoils says the strong growth in the number of millionaires in Durban has been “fuelled by massive millionaire growth in the Umhlanga and Lu Lucia area, especially among the Indian community.”
“The north coast of KwaZulu-Natal (above Durban) is also becoming increasingly popular for the super rich, especially in the second home market,” he says.
Areas like the popular holiday towns of Ballito and Zinkwazi have become new hotspots for investment among the country’s super-wealthy.
According to the report 14 700 (or 31%) of the country’s dollar millionaires are from previously disadvantaged groups.
The average HNWI is 55 years old, slightly below the global average of 56 years, and around 20% of them made their fortunes from the financial services sector.
The country’s super-wealthy also have a penchant for offshore investing, with just under 20% of them holding their riches abroad in countries like the UK, the Cayman Islands, the Bahamas, Switzerland and the Channel Islands.