Most local millionaires still call Joburg home

South Africans currently hold total wealth of $580 billion (R8 trillion), according to the 2016 World Cities Review released by New World Wealth.

Total wealth is defined as private wealth held by individuals and includes all their assets (property, cash, equities and business interests) less any liabilities.

The bulk of South African private wealth is held by Johannesburg’s high-net worth individuals.

Johannesburg has a well-diversified economy but nonetheless remains the industrial hub of South Africa. As a result, the city is home to numerous wealthy industrialists.

“17 600 millionaires and two billionaires – holding assets of $243bn (R3.4 trillion) – are currently based in Johannesburg.”

Of South Africa’s estimated 40 400 dollar millionaires and seven billionaires, 17 600 millionaires and two billionaires – holding assets of $243bn (R3.4 trillion) – are currently based in Johannesburg.

In contrast, Cape Town is home to just 7 400 millionaires and two billionaires, with a combined wealth of $130bn (R1.8 trillion). Durban accounts for $45bn (R625bn) of South Africa’s private wealth and is home to 2 700 millionaires and one billionaire. Pretoria’s ultra-high net worth population includes 2 600 millionaires who own assets valued at $42bn.

Once again the Garden Route and the Winelands (Paarl, Franschoek and Stellenbosch) are identified as emerging wealthy towns – each with an estimated millionaire population of 2 500.

While ultra-wealthy individuals in the Winelands hold about $40bn of assets, wealth in the Garden Route, which is home to a large number of retirees, is estimated at about $38bn. The most significant towns along the Garden Route, according to New World Wealth, are George, Knysna, Plettenberg Bay and Wilderness.

As a result of persistent Rand weakness, the number of dollar millionaires based in South Africa has declined over the past year – declining by 5 800 high-net-worth individuals in Johannesburg and 1 500 in Cape Town.

South Africa’s private wealth holdings remain small compared to other global cities. There are 13.3 million millionaires and 1 940 billionaires across the world, collectively holding total wealth of $185 trillion.

London is currently the wealthiest global city, with a population of 357 000 millionaires and 62 billionaires holding assets valued at $2.7 trillion. The UK capital is followed closely by New York City, with private wealth of $2.6 trillion and an ultra-wealth population of 336 000 millionaires and 65 billionaires.

During the past decade, the fastest-growing global cities measured by wealth were Beijing, Shanghai, Mumbai and Sydney. Looking ahead, New World Wealth anticipates that Mumbai will emerge as the fastest growing city.

Posted by The Know - Pam Golding Properties