People are flooding to security estates in South Africa
South Africa is seeing growing demand from homebuyers to live in security estates, with the trend finding a particular root in Gauteng, the country’s smallest yet most populous province.
Almost one-third of the value of property transactions in Gauteng last year were related to properties in estates, data shows.
According to property group Seeff, the rise in demand for security estates in Gauteng has seen homes in estates achieving some of the best average value growth over the last five years.
“The demand is driven by buyers looking for a better quality of life. Aside from amenities, many estates operate like mini municipalities, and residents enjoy a secure life in a well-maintained environment,” it said.
Security and a better quality of life are two of the most important aspirations of property buyers and tenants when it comes to estate living.
This has led to another trend where even estates that were once reserved for “weekend getaways”—like the Pecanwood Estate in Hartbeespoort—are now shifting and becoming permanent residences.
Seeff noted that freehold housing still dominates property stock in South Africa, but estates are now the fastest growing.
According to Lightstone, there are now over 6,500 gated communities and estates nationwide, comprising around 5% of the market and accounting for about 15% of the total value of residential property.
Half of these are in Gauteng, and estate properties (full and sectional titles) accounted for 16% of all sales transactions in the province and some 28% of the total value of all transactions.
The majority (73%) of sales in estates were freehold houses.
The average price of a freehold estate house is R2.45 million, double the average of a standard freehold house in Gauteng which stands at R1.13 million.
It is also slightly higher than the national average for a freehold house in an estate which stands at R2.36 million.
Sectional titles in estates sell for an average of R1.52 million, notably higher than the standard sectional title price of R977,000.
Seeff noted that estate houses in Gauteng achieved some of the best price growth over a five-year period Gauteng, with the price for freehold houses up by 17% and for sectional titles up by 21.6%.
Estates are also hugely popular for rentals, attracting some of the highest rental rates.
The group outlined some of the top Gauteng estates with the best price growth over five years for freehold houses:
| # | Estate | Location | 5-year growth | Average price | Highest price | Average rental |
|---|---|---|---|---|---|---|
| 1 | Woodhill Golf Estate | Pretoria East | 38% | R5.5 million | R20 million | R15,000 – R95,000 |
| 2 | Pecanwood Estate | Hartbeespoort | 32% | R3.5 million | R14 million | R20,000 – R55,000 |
| 3 | Thornhill Estate | Modderfontein | 25% | R3.8 million | R10 million | R25,000 – R40,000 |
| 4 | Blue Valley Golf Estate | Centurion | 24% | R3.6 million | R20 million | R23,000 – R55,000 |
| 5 | Blair Atholl Estate | Centurion | 22% | R12.8 million | R67 million | R40,000 – R65,000 |
| 6 | Silver Lakes Estate | Pretoria East | 17% | R4.4 million | R35 million | R25,000 – R75,000 |
| 7 | Kyalami Estate | Midrand | 16% | R4.4 million | – | R18,000 – R40,000 |
| 8 | Midstream Estate | Centurion | 16% | R4.4 million | R30 million | R18,000 – R50,000 |
| 9 | Eagle Canyon Estate | Roodepoort | 16% | R5.1 million | – | R20,000 – R50,000 |
| 10 | Dainfern Golf Estate | Midrand | 15% | R5.8 million | R35 million | R25,000 – R95,000 |
Areas in Gauteng with a high concentration of estates include Centurion, where estates such as Midstream are basically a community.
Aside from a vast number of homes (full and sectional title), the estate has its own schools, medical facilities, and a host of amenities.
Blair Atholl Estate is regarded as one of the most exclusive in the country.
Bedfordview/Edenvale is another popular area for estates, and in the Sandton/Midrand area, there are about 40 estates, including some of the most exclusive and expensive.
Read: Good news for property owners in South Africa – except in three major cities
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