So strong is the demand for secure living in a family-friendly environment that the price of homes in estates has surged significantly in recent years, with values at their highest since 2017.
“The pandemic has not only changed the way we work and socialise, it has also changed the way we live. Quality of life has become an important consideration when buying a home, and there’s been a surge of interest in lifestyle estates that make it possible to enjoy a host of recreational activities in a controlled environment,” says Carl Coetzee, CEO of BetterBond.
“It’s not surprising that the value of homes sold in estates is higher than other property types, and rising rapidly.”
The value of properties in estates has increased from R1.2 million in 2015 to almost R1.7 million in 2021, according to Lightstone. Meanwhile, the average price of freehold properties is now at R1.2 million, up from the R830 000 it was seven years ago.
“Bond applications for homes of between R1.5 million and R2 million have increased steadily in the past three years and they now account for 13.3% of all BetterBond’s applications,” says Coetzee. Many of these bonds will be for homes in estates, he adds.
While house price inflation for sectional title and freehold properties has drifted downwards since mid-2021, Lightstone reports that the value of estate homes has held steady and in some areas increased significantly.
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In Gauteng, a premium is placed on the safety estates offer, says Frikkie van Eeden, Broker/Owner of RE/MAX Advantage. “We are seeing a steady demand for estate living, with price increases in these estates flowing from this. This is contrasted against a 20% decrease in value in freehold properties in and around Sandton and Rosebank.”
“Estates offer ‘the whole package’ providing a sense of space and great amenities” he adds. “They have become one of the rare places where you can still see kids riding their bikes.”
Popular estates in Gauteng include Dainfern and Eagle Canyon but Steyn City has become the preferred choice, says Van Eeden. The Houghton has merged luxury apartment living with the security and amenities one expects in an estate.
“Its success is based on the same principles of creating a safe living environment.” The entry-level price for a home in one of these Gauteng estates is around R3.5 million, with top-end properties selling for upwards of R70 million.
Van Eeden expects the demand for estates in and around Johannesburg to intensify in the next couple of years. “Estate living ticks all the boxes and in South Africa, the security these estates offer has made them the go-to for all who can afford them,” he notes.
The recent unrest in KwaZulu-Natal and part of Gauteng has added to the luster of estate living, especially in the Western Cape and other parts of the country, says Graham Ross, of Just Property, Atlantic Seaboard.
“They enjoy being close to the coast and the Western Seaboard is one of the areas that offers this as well as security,” says Ross.
He says Atlantic Beach Golf Estate, where the average selling price has increased from R4.46 million in 2020 to R6.48 million this year, and Sagewood Estate are among the top performers along the Western Seaboard. Ross adds that properties sell within just over eight weeks of being listed, in line with the national average of seven weeks and six days reported by FNB.
De Zicht Estates
Hendrik van den Berg, of Just Property N1 City, says Burgundy and De Zicht Estates on the N1 in Cape Town have enjoyed “astronomical” price growth over the past 12 years. “As demand increases for safe and secure family living, so too do the prices of properties in estates such as these.”
A Burgundy Estate home valued at R860 000 in 2016 will now cost R1.25 million, with estate agents in the area saying the price has increased by about 5% since this time last year. The estate has a mix of freestanding homes and apartments making it appealing to a range of buyers, says Van den Berg.
As a Burgundy Estate resident, Van den Berg adds that the convenience of having everything his family needs on his doorstep far outweighs the cost of living there. “We will always aspire to keep our loved ones safe, no matter what the cost.”
Along the sought-after Atlantic Seaboard, homes in secure estates are now selling at prices last seen in 2018 before the property bubble burst, says Ross. Just two years ago, the average sales price of homes in this market was around R8.2 million. The same property is now valued at an average of R12 million.
“At no point have we as a human race appreciated the small things in life more than we do now during the pandemic. So there has been a marked increase in the recent sales value for freestanding homes in security estates; more so than with sectional title pricing,” adds Van den Berg.
“Homeowners will pay premium prices to live in a secure estate where they know their family will have access to recreational activities and important amenities even if they have to remain at home, as was the case during the pandemic,” says Coetzee.
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