Niche Marketing: Selling to millionaires
According to the most recent WealthInsight report, South Africa has the highest number of millionaires in Africa – some 44 700 of them, with a combined wealth of around US$188 billion.
This means that there are very likely more millionaires in the country now than estate agents, so if there was ever a time to start building a career in luxury real estate, it’s right now – especially since the top end of the market seems to have come alive again (see article above).
But in order to make the transition to high end properties and high net worth clients, you’ll have to give up the idea of a lifestyle as leisurely and apparently effortless as that of your clients.
Says one agent who has already made her mark in this sector: “You don’t just get to deal with wealthy sellers and buyers overnight. These are people who are used to working through business managers and attorneys. Their level of sophistication is extremely high and they expect extraordinary service, 24/7.”
However, for those who aren’t deterred by that thought, it is definitely a huge market, not only in SA but around the world – even though the number of super-wealthy has dropped slightly in the past few years.
The latest Cap Gemini and RBC Wealth Management Report reveals that there are still 9,9 million people in the world who have between US$1m and US$5m to invest, and 100 000 with more than US$30 million at their disposal. (SA, incidentally, has 543 of these multi-millionaires).
In the Asia-Pacific region there are 3,37 million men and women with more than US$1 million in the bank, and in North America there are 3,35 million.
Altogether, the world’s wealthiest have US$42 trillion at their disposal, and it certainly would be great to attract some more of those investment dollars to SA.