This is how much the average residential estate home costs in South Africa
Residential estate properties have staying power and usually perform better than the value of the property in neighbouring suburbs in South Africa, according to Pam Golding Properties.
Based on actual sales, using Lightstone’s data for the national residential property market for August 2016 year to date, house prices reflect average price inflation of 5.8%. In contrast, the Association of Residential Communities (ARC) website states that annual house price inflation in estates is 7.5%.
“In terms of value, currently estates account for around 22% of the market’s total sales value – up from 20.5% pre-recession and remaining fairly stable since late 2013, while unit sales in estates currently stand at around 14% of total market sales,” said Andrew Golding, chief executive of Pam Golding.
In Gauteng, the statistic is on a gradually declining trend since late 2012 – this economic powerhouse region still accounts for the largest percentage of the total value of estate sales in South Africa, at around 55%.
The Western Cape accounts for a smaller, but growing share of total estate sales at close to 29%.
Interestingly, in both Gauteng and the Western Cape the R3 million-plus price band accounts for a growing portion of total estate unit sales.
Among the major metros, Pretoria in Tshwane Municipality constitutes the largest total number of units sold in estates, while Johannesburg’s estate market is the largest by value – although this margin is declining as the value generated by both Pretoria and Cape Town increases at a faster pace.
Indicating the popularity of estate living, according to ARC there are currently approximately 6,000 gated communities in South Africa with a total value of some R650 billion.
These comprise some 320,000 residential properties at an average value of R2 million per property which is three times greater than the estimated national average of R700,000 per home outside of gated communities.
Further statistics from ARC make an interesting point – that today golf estates comprise only about 12% of the total estates in South Africa.
Over and above the investment potential and price appreciation already being achieved, undisputedly the desirability of living on a secure estate continues to increase exponentially, Pam Golding said.
“Living on an estate is about far more than security. There are numerous factors which attract people across all generations to an estate lifestyle. The new trend is towards so-called lifestyle estates which encompass ‘work, live, play, shop’ – all within a secure environment which provides a sense of community as well as easy access to educational facilities.
“Some estates even provide schools on site, while the leisure amenities encompass a host of features with the accent in newer estates on a broader lifestyle offering rather than as was previously the case, focusing mainly on one aspect. These facilities can also include gyms and other sports facilities and even shopping complexes,” Golding said.
A further drawcard within residential developments is the fact that the sizeable monthly costs for water, electricity and garden maintenance incurred for large, freestanding properties are replaced by shared costs and hassle-free estate management.
While some high end buyers are investing considerable capital in building their iconic, dream homes with cutting edge design, the latest technology and eco-friendly features, estate living is also becoming more accessible and attracting a younger generation of home buyers, with in excess of 70 percent younger than 49 years of age (Lightstone statistics).
More on estate living
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