CEO's Message June
Category CEO's Message
Ever wonder how the South African super-rich spend their money?
According to a recent international report a fair number invest it in fine art, good wines, classic cars and other collectibles.
The report published by consultancy New World Wealth and titled South Africa 2013 Wealth Book, estimates that the country’s dollar millionaires held US$230 million in fine art in 2013 and that they invested 1% of their total assets, about US$1.3 billion in collectibles.
The consultancy, which analyses wealth globally, has a detailed database of over 600 of SA’s richest people and says that in addition, 20% of this elite group’s assets were found in real estate in 2013.
Chris Tyson, CEO of Tyson Properties which is an affiliate of Christie’s International Real Estate, said the statistics are not surprising as the marketing of fine art and high-end real estate has proven to be a good combination worldwide.
The company’s recent white paper titled Luxury Defined: An insight into the luxury residential property market offers fresh insights into the buying behaviours, preferences and demographic make-up of high-net-worth individuals purchasing luxury residences worldwide.
The white paper reports that luxury residential real estate tends to correlate more closely to luxury goods than it does to the general housing market.
Fine art, the category led globally by Christie’s Art House, is the luxury goods sector showing strong synergies with the prime property market.
Fine art sales were up 16% to $7.1 billion and the biggest sale of the year was a Post War and Contemporary Art sale realising $692 million in New York in November. The sector’s strong performance was also driven by a 30% increase in new buyers.
“It was found that in 2013 the top end of the fine art market performed very well as the world’s wealthy turned to investments offering uniqueness, craftsmanship and experiential luxury”, said Tyson.
On the local front Tyson Properties is very active in the upper end of the KwaZulu-Natal real estate market and has a number of high-end luxury homes listed.
The company’s Umhlanga branch is marketing an exquisite and stately Durban North home in the sought-after address of Grosvenor Crescent for R9.5 million. This magnificent property offers ambassadorial-sized entertainment spaces, four bedrooms, three en-suite bathrooms, a gourmet kitchen, a separate guest suite, a gym and sea views. The outside spaces include a sweeping driveway, large grounds, as well as a swimming pool and tennis court.
In Cowie’s Hill, the Westville branch is marketing an equally impressive historic mansion. The home, Woodhall Manor, was commissioned in 1929 by a wealthy Scottish timber merchant and is rich in the craftsmanship and detail of the Victorian era. Currently run as a guesthouse, the house is a 1 160m2 double story residence with numerous reception rooms, nine en-suite bathrooms, a butler’s quarters, and a self-contained one-bedroomed cottage. It is set within a security estate in the upmarket Kings Avenue in Westville and has a listing price of R7.9 million
“The synergy between fine properties, such as these, and art is natural, as art and real estate are assets of passion and lifestyle and the same people who buy fine art buy luxury real estate,” said Tyson.
Tyson Properties is a KZN-based property group with 19 offices across the province. The group was invited to become an affiliate of Christie’s International earlier this year. An honour extended only to the most accomplished real estate brokers at the top of their market. Christie's International Real Estate is a global authority on the effective marketing of fine properties worldwide.
Author: Tyson Properties
