South Africa’s millionaires grew by 14% since 2020

A report by commercial and residential property group Knight Frank shows that South Africa has produced more millionaires since the start of the Covid-19 pandemic in 2020.

According to the Knight Fank Wealth Report for 2022, which shows the number of High-Net-Worth Individuals (HNWI) currently living in South Africa, there has been a steady increase in HNWI locally over the past five years.

That trend is expected to continue over the next decade.

You need to have a net worth of R15.3 million, including your primary residence to qualify as an HNWI.

The report revealed there were 31,852 HNWI as of 2021, up from 2020’s 28,043, representing a 14% increase.  

In 2016, there were 26,649 HNWI and that number is expected to reach 34,064 by 2026.

The report attributes some of this personal wealth growth to asset price rises, from property markets to stock markets and luxury collectables.

The rich got richer, while average citizens declined

On the ground, however, the picture is bleak, with many taking a significant knock due to the impact of the pandemic.

While average global citizens’ net worth declined, the global elite ascended and improved.

“Ongoing Covid disruption and lockdowns are particularly worrisome for the African continent. 

“In South Africa, the economy is so fragile it can’t afford or tolerate another full lockdown,” said the report. 

The report, while acknowledging this wealth divide, also states that property’s role as a store of wealth “has never been greater.”

Globally, the property bounceback that followed the pandemic was far from uniform. Advanced economies (+8.9%) outperformed developing markets (+7.3%) in 2021. 

“Not only were lockdowns more draconian in advanced markets, but with a larger cohort of professional workers able to work from home, they were able to accrue larger savings pots, some of which was reinvested back into bricks and mortar,” said the report.

Report names Mooi Kloof ‘mega-city of SA’

“East of Pretoria, at Tshwane in Gauteng Province, this R86 billion  (US$5 billion) public-private development, master-planned by Balwin Properties, is expected to be a housing game-changer in more ways than one,” said the report.

The report earmarks Mooikloof to be the “world’s largest part-ownership residential property development.” 

“It has also been designated as one of South Africa’s state-led strategic integrated developments aimed at ensuring inclusive housing for all, as well as having strong green credentials,” said the report.

Mooikloof spans over 200 hectares and plans include more than 50,000 residential units plus educational and healthcare facilities, retail and commercial real estate. 

“Mooikloof is expected to create around 41,000 jobs and will offer lifestyle services such as outdoor gyms and sports facilities that have previously been inaccessible to those in lower-income groups – a first for South Africa.”

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