According to Andreas Wassenaar, licensee for Seeff Zimbali, an influx of buyers from Gauteng and international buyers from the UK and Northern Europe have boosted demand for estates in the KZN North Coast area, with sales mostly in the R13 million to R15 million. High-end estate homes are now listing for up to R40 million.
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Estates are not only the fastest growing property sector in terms of new developments, but have achieved some of the best capital appreciation rates over the last five years. Prices of estate homes have grown on average faster compared to other property types, according to agents from the Seeff Group.
Lightstone data shows that around 16% of all property transactions last year were concluded in the estates. The average price for estate homes increased by 28% to R2.3 million in just five years. Comparatively, the national average price only increased for homes not in estates grew by only 8% over the same time. While only 2% of all transactions nationally are over R3 million, this is increased to 8.5% for homes located in estates.
At least 20 estates achieved some of the best capital growth of upwards of 22% to 37% over five years. Samuel Seeff, chairman of the Seeff Group attributes the surge in demand for estates to the enhanced security and lifestyle, especially in areas with service delivery challenges.
Sales data for last year shows that the highest number of estate transactions totalling 13,997 were concluded in Gauteng. Western Cape estate transactions were slightly lower at 12,265 transactions, but achieved the highest overall value of R34.4 billion. KZN achieved the highest average price at R3 million.
Overall, the best price growth was achieved in estates in the Cape Town Metro area, largely in keeping with the general price growth patterns observed over the last decade in the Cape. These include estates in Blouberg and Somerset West, two popular areas with semigration buyers.
Gauteng estates with the best growth are located in Pretoria East and Centurion, as well as the Bedfordview/Edenvale area. KZN estates with the best growth were those in Umhlanga and Hillcrest.
Blouberg estates
Popular Blouberg estates such as Sunset Links and Atlantic Beach Estate both offer access to golf courses, and along with other estates in the area, there has been a marked uptick in the prices paid which can now range up to R5 million to R15 million, according to JP Ricketts, sales manager for Seeff Blouberg. Hout Bay and Somerset West estates are also averaging in a similar range. Erinvale Golf Estate (Somerset West) for example achieved prices of up to R19.5 million last year.
Johannesburg estates
Johannesburg estates such as Fourways Gardens and Kyalami are both popular in the R5 million to R8 million range. Golf estates such as Dainfern and Eagle Canyon have also achieved better price growth compared to houses outside of estates. Rochelle Holland, manager for Seeff Joburg North West says homes in estates such as Eagle Canyon are also popular with tenants.
Dave Ingle, licensee for Seeff Modderfontein/Edenvale notes that there are a number of popular estates in the area, selling mostly in the R2.2 million to R3.7 million range such as Emerald, Thorn Valley, Bushwillow Park, and Lakeside Village. These too are popular for rentals and can achieve R17,000 to R40,000 per month for a house.
Pretoria East
Pretoria East is home to a number of high-end estates including the Mooikloof Equestrian Estate and Silver Lakes Golf Estate which rank among the best performers over five years. Some of the highest prices paid from R5m-R15m are also in estates. PG van der Linde, rentals manager for Seeff says these also achieve some of the highest rental rates of up to R80,000 per month.
According to Andreas Wassenaar, licensee for Seeff Zimbali, an influx of buyers from Gauteng and international buyers from the UK and Northern Europe has also boosted demand for estates in the KZN North Coast area with sales mostly in the R13 million to R15 million. High-end estate homes are now listing for up to R40 million.
