WORDS: DEBBIE LOOTS :: PHOTOS: SUPPLIED
The luxury of living in a security estate is a dream few South Africans can afford, but with new developments now offering value and affordability, it’s become a possibility for a cross-section of people
South Africa has a large young population needing affordable homes. Accommodation in the country’s major metros come at a premium but some developers are offering affordable solutions. Chief executive of the Pam Golding Property group Dr Andrew Golding says while estate living was initially seen as an option only the wealthy could afford, it is becoming more accessible to a broader cross-section of home buyers.
“Developers realise the potential of including sectional title and retirement homes in developments, which broadens the appeal of this convenient way of living.” He says the property market is also showing signs of favouring sectional title homes. “Currently, a desire for security and a shift towards a lock-up‑and-go lifestyle, coupled with changes in the way we view retirement, is seeing an uptick in interest and demand for homes in secure estates.”
MORE PEOPLE LIVE IN ESTATES
Research analyst for Pam Golding Properties Sandra Gordon says that in 2010, about 13.1% of all properties sold in SA were in estates. “While it increased in the following years, by 2019 about 13.7% of all homes sold were in estates. However, this changed abruptly in the wake of the pandemic, rising to 15.4% in 2020 and remaining elevated. In 2022, 16.4% of all homes sold were in estates.”
She expects this trend to continue as people prefer the security and convenience of living in an estate, especially as developments become more energy and water efficient and more affordable. Recent Lightstone statistics show that estates make up only 7% of SA’s more than 7-million registered residential properties, but account for 17% of the total market value.
It is estimated that there are currently about 440,000 properties in more than 5,000 estates across SA. And, although residential sales fell during the first year of the pandemic (2020), the recovery in sales thereafter was driven by both sectional schemes and estates. According to Golding, statistics show estate sales in the Western Cape are increasing, which may be due to the influx of affluent upcountry buyers.
Fernkloof Village in Fernkloof Estate, Hermanus
Western Cape leads
According to Lightstone data more new estates are being developed in the Western Cape than anywhere else, followed by Gauteng and KwaZulu-Natal. Gauteng and the Western Cape account for 70% of all estate homes sold in SA and have consistently accounted for more than 70% of all estate sales since 2010.
However, the tide has since turned, with the Western Cape accounting for a larger share of total estate sales. “While Gauteng is home to the most homes in estates, the Western Cape has more high-value estate homes with sales mostly in the R3m price band.
“In 2010, Gauteng sold twice as many homes in the R3m price range than the Western Cape (1,060 vs 488) according to Lightstone,” says Golding. “By 2022, Gauteng registered just 13.3% more estate homes in the R3m price bracket than the Western Cape – highlighting the far stronger growth in the top end of the estate market in the Western Cape.”
Affordable value
Lightstone data shows a change in the market during the past two decades with less expensive homes comprising a substantial portion of estate properties at the end of 2022. This was not the case when estates were first developed – when homes were almost exclusively larger, expensive freehold properties.
At the end of 2022, nearly 190,000 estate properties were valued at less than R2m, while 196,000 were valued at between R2m and R5m. Almost 35,000 were valued at more than R5m.
Cosmopolitan Project’s Leopard’s Rest and Lion’s Pride are just two of its new large developments in Johannesburg that offer average South Africans affordable homes in a security estate with all the mod-cons usually only accessible to the upper end of the market. For example, in Leopard’s Rest a three-bedroom home with top-of-the-range fittings sells for R1.26m and in Lion’s Pride an 89m² home consisting of three bedrooms sells for about R1.6m.
Glen Navar estate is situated on the east coast outside East London
Popular North West
Value is also found a little further outside of Gauteng’s borders in the North West, an area known for its natural beauty and rich cultural history. Mining is an economic driver here where 94% of SA’s platinum is produced – no wonder North West is also known as the Platinum Province.
According to Lightstone, the province is growing faster than six other provinces in SA, with only Gauteng and the Western Cape showing more expansion. North West’s urban areas are home to 53% of the population.
Why live here?
Apart from its growing population, four other factors contribute to the province’s housing market: proximity to Gauteng (homes around Hartbeespoort Dam are within Gauteng’s commuter belt); the tourism industry (Pilanesberg National Park and Sun City are draw cards); the mining sector (it generates more than 50% of the province’s GDP and employs a quarter of its workforce) and the government’s housing policy.
“A growing population has an appetite for housing,” says Hayley Ivins-Downes, head of digital at Lightstone Property. “So we have considered all the numbers to determine the state of the housing market here.”
Looking specifically at estates – the province has 235 security estates offering 32,000 residential units. There are 57 luxury estates (the average value exceeding R2m for a home) with more than 10 properties per estate. Luxury estates account for 11,500 properties.
Arabella Country Estate, Western Cape
Nature as garden
The province’s leading estates include Schoongezigt Estate and Waterkloof Hill Estate in Rustenburg, Pecanwood Estate Golf and Country Club in Hartbeespoort and K’Shane Lake Lodge & Eco Estate in Kosmos.
Kosmos and Hartbeespoort are two scenic towns on the banks of the Hartbeespoort Dam where the average property value is about R2.4m. “Kosmos has a unique village atmosphere,” says MD of Engel & Völkers Hartbeespoort Dam Cherry Grobler. “Here quaint cottages rub shoulders with modern executive homes and there are breathtaking views all around.”
Popular security estates are also huddled all around the picturesque dam with the Magaliesberg mountains as backdrop. One of these estates is K’Shane Lake Lodge & Eco Estate with 47 freehold properties that’s part of the Magaliesberg Protected Natural Environment.
“With its indigenous trees, variety of flora and birdlife, and free-roaming game you may as well be in a bushveld game reserve,” says Engel & Völkers Hartbeespoort property practitioner Maryka Kruger. K’Shane residents also enjoy amenities such as a clubhouse and pool, bush bomas, tennis court, boating facilities and helipad.
Urban amenities close by include schools, shopping centres, restaurants and tourist attractions. House prices in K’Shane start at about R5m.
