Cape Town's Atlantic Seaboard saw over 120 properties change hands above R20 million in 2024 alone.
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Overpricing is killing property deals, a newly released MyProperty Sentiment Index 2025 shows. It found that selling prices need to be adjusted downwards, and then over 75% of homes sell below asking price, often after lengthy delays.
Based on feedback from more than 200 estate agents, the report found that 88% frequently encounter overpriced listings, and two-thirds believe overpricing significantly damages buyer trust.
This comes as a home on Nettleton Road in Clifton sold this year for a record-breaking R157 million, a sale that captures the heat in South Africa's high-end property market.
"Overpricing isn't just 'testing the market,' it delays your sale, erodes trust, and often results in the property selling for less than if it had been priced fairly upfront," says Adriaan Grové, CEO and Founder of MyProperty and Entegral.
Mid-market properties are most vulnerable to unrealistic seller expectations, but the principle applies across all price bands.
Informed buyers quickly reject inflated listings, wait for reductions, then negotiate further – leaving sellers worse off than if they'd priced competitively from the start.
Home priced above R3.6 million spend some 12.3 weeks on the market.
In Gauteng, houses sit unsold for 12.6 weeks, with the Western Cape faring the best at 9.2 weeks.
Cape Town's Atlantic Seaboard saw over 120 properties change hands above R20 million in 2024 alone, totalling more than R3.6 billion in sales value, with some transactions exceeding R50 million.
Where the money lives
Properties above R2 million now account for 22% of all home loans granted by BetterBond in the 12 months to August 2025, with loans exceeding R3 million making up 10% of that figure.
Encouragingly, the R1 million to R1.5 million bracket has also strengthened, representing 20% of loans granted.
The latest Africa Wealth Report 2025 by Henley & Partners and New World Wealth confirms South Africa as the continent's wealthiest nation, home to 41, 00 millionaires.
Cape Town and Johannesburg rank as two of Africa's wealthiest cities, with Cape Town claiming all five of the country's most expensive suburbs – Camps Bay, Clifton, Constantia, Bantry Bay and the Waterfront – where average prices exceed R20 million.
Luxury prices
The Western Cape dominates the luxury market, accounting for 40% of transactions above R10 million in 2024, according to Lightstone.
Despite being home to just 12% of South Africa's population, the province accounts for 18% of property transaction volumes and nearly 31% of total value.
Gauteng's luxury market is equally robust.
Suburbs like Sandton, Hyde Park and Bryanston continue to attract high-end buyers with secure properties near top schools, restaurants and business hubs.
Property24 listings show several Hyde Park homes priced at R55 million, with properties in Sandhurst, Sandton and Bryanston reaching R89 million.
Foreign buyers are also snapping up prime coastal and Winelands properties, paying an average of R2.7 million – well above the national average purchase price of R1.6 million, Lightstone reports.
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