Housing in Southern Africa July 2015

Infrastructure & Mixed Use

Estate living reaches new height s

D r Andrew Golding, Chief Executive of the Pam Gold- ing Property group, says that estate living is a global phenomenon that first came to SA in the 1980s, but really started to catch on from the mid-1990s. Today these properties represent an estimated total value of some R643 billion. “South African home buyers are increasingly focused on living in a secure environment while having easy access to amenities and outdoor and sporting activities. There are now a variety of different types of estates around the country including golf, lifestyle, eco, wildlife, fishing, wine and equestrian properties, which have been developed to meet the demands of an increasingly diverse and sophisticated market.” Golding says that there are a num- ber of different reasons why South Africans are attracted to estate prop- erties. He suggests that one factor that has given this particular market a proverbial shot in the arm is that estate developers are catering for and succeeding in attracting buyers who have a broad variety of needs and tastes. “Key factors contributing to the popularity of estate living are security and location—with those situated in and aroundmajormetropolitan areas or business hubs and in close proxim- ity to good schooling proving among themost sought after and successful. Many buyers also perceive that the demand for this type of housing has created a sound investment that will appreciate in value or generate good rental income. “Indicative of the quality of

With approximately 6 000 closed communities and estates in South Africa, and 318 000 residential properties being estate homes, this form of living is enjoying unprecedented popularity in this country among a wide range of buyers – from working singles to young families, established professionals and retirees.

residents greater control over shared expenditure and development. The latter has become more important in the current environment of load- shedding and rising utility bills.” According to PamGolding Proper- ties research data, approximately half of all estates in South Africa are lo- cated in Gauteng, with a further 25% in theWesternCape. The proliferation of estates in Gauteng has been driven by the combination of factors includ- ing property development in linewith economic growth and a desire for greater security. In 2013, the great majority of properties (85%) are in gated community lifestyle estates 85% and only 12% in golf estates. “The concept of the South African residential estate was pioneered in the Fourways area in the 1980s, and is amodel that has caught on around the country,” notes Golding. Steyn City, when completed, will be a completely self-contained com- munity in which residents can live securely while having every conve- nience, including commercial enter- prises, offices, schools and crèches as well as medical, sporting and other facilities close at hand. The Fourways area is rapidly on the rise and with it we see estate properties in the area, particularly a product such as Steyn City, becoming more popular in future. ■

offering and sound medium to long term investment potential, estate homes have in the past been on the upper end of the property pricing spectrum “Many buyers typically ‘buy-up’ from their previous home, often by as much as twice the value of the non-estate property they sold.” “However, with the introduction of sectional title opportunities in many of the newer estates, these properties are no longer exclusively limited to those in the higher income brackets. In other words, while estate living is still associated with more wealthy individuals, it has become more ac- cessible in recent years. Some 25% of estate property purchasers are first-time buyers.” Golding points out that highly innovative, modern mixed-use de- velopments such as the new Steyn City lifestyle resort in the burgeoning Fourways area of Johannesburg, are offering a range of quality accom- modation, including a variety of dif- ferent types of clusters, townhouses, apartments and retirement homes all set on a substantial 2 000 acres of attractive leafy estate. “Estate properties provide a se- cure lifestyle, which has become increasingly important in South Africa, but also offer access to high quality recreational facilities, provide a strong sense of community and give

July 2015