Sandhurt boasts highest ultra rich people: WealthInsight

One in every 20 residences in Sandhurst, a suburb in Sandton, is owned by a multi-millionaire making the suburb the wealthiest in South Africa, a research survey has found.

The survey was conducted by WealthInsight which released earlier this month another research showing that South Africa’s black multi  millionaires has increased markedly to account for 14% of the country’s total. The survey established that Sandhurst is home to over 30 South African multi-millionaires, more than any other suburb in the country. The suburb located in the north of Johannesburg also has the highest multi-millionaire population density in the country. Sandhurst is located a stone throw away from the Sandton central business district (CBD) which has emerged into Africa’s prime financial hub.

“A combination of large plots, safety and location make Sandhurst the top suburb in South Africa for the ultra rich,” said WealthInsight analyst Andrew Amoils.

WealthInsight research also shows that South Africa has the highest number of millionaires in Africa. “As of 2011, there were just over 44,700 millionaires in the country, with a combined wealth of US$188 billion, accounting for roughly 25% of South Africa’s total individual wealth (US$740 billion)”.

Included in this total are 543 multi-millionaires, each with wealth of over US$30 million. Johannesburg is home to the largest portion of these individuals (48% or 261 multi-millionaires). There are also sizable South African multi-millionaire populations in Cape Town (103 multi-millionaires), Durban (31 multi-millionaires) and Pretoria (28 multi-millionaires).

According to WealthInsight multi-millionaires otherwise known as ultra high net worth individuals (UHNWs) are individuals with net assets of US$30 million or more excluding their primary residences. “Millionaires” otherwise known as high net worth individuals or (HNWIs) refer to individuals with net assets of US$1 million or more excluding their primary residences.

WealthInsight has also established that the representation of black people in UHNWIs has increased to 14% of the total in the country. According to WealthInsight research there were 75 South African ultra high net worth individuals from “previously disadvantaged groups” at the end of 2011. This is a relatively low percentage considering that these groups make up 90% of the national population, said WealthInsight.

“However, it should be noted that their volumes have grown from less than 40 in 2007. This means that previously disadvantaged groups accounted for over 30% of total South African UHNWI growth between 2007 and 2011, with their volumes rising by 88% over the review period (2007-2011) compared to South Africa’s overall UHNWI population which grew by 20%. Research shows that the bulk of this growth was gathered via new BEE deals”. The limited group of UHNWI will include prominent business people like Patrice Motsepe who is considered to be one of the few black billionaires. Others include Cyril Ramaphosa, Sipho Nkosi, Mike Teke, Tokyo Sexwale, Saki Macozoma etc.

WealthInsight said over the forecast period to 2016, previously disadvantaged groups are expected to account for over 40% of total South African UHNWI growth, with their volumes growing by just over 100%. This will be fueled by a number of core HNWIs from this group moving into the UHNWI category. Accordingly, the number of previously disadvantaged UHNWIs will rise to more than 150 individuals by 2016, when they will account for 19% of South African UHNWI volumes.

Among all high net worth individuals (otherwise known as millionaires), WealthInsight research shows that there were just over 12,500 South African HNWIs from previously disadvantaged groups at the end of 2011, which equates to 28% of South Africa’s total HNWI population of just over 44,700 individuals.

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