Living within a secure estate is becoming increasingly popular.
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With demand on the rise, prices are seeing a steady increase year-on-year.
As estates become more and more all-encompassing, most predict that this trend towards estate living is here to stay.
According to Lightstone Property’s April newsletter, freehold property inflation dropped to 6.89% at the end of 2021 and sectional titles dropped to 3.17%, while estates ended 2021 at 3.87%, which is the highest it has been since early 2017.
Adrian Goslett, regional director and CEO of RE/MAX Southern Africa, attributes this growth to multiple factors.
“While there are many ways to explain this growth, I suspect that one of the reasons might be an overspill of changes brought about by the pandemic.
“Time spent in hard lockdown had many reconsidering their priorities.
“Suddenly, being close to work was no longer a top consideration and the safety and security offered by an estate seemed more appealing,” he said.
While estate living has become popular across the country, Gauteng is one of the provinces where it is in the highest demand.
Frikkie van Eeden, Broker/Owner of RE/MAX Advantage in Rosebank, said his offices are seeing a steady demand for estate living in the area.
“A steady price increase in these estates flows from this. This is contrasted against a 20% decrease in value in freehold properties in and around Sandton and Rosebank,” he said.
When asked what causes this growth in demand, van Eeden explains that estates offer the whole package.
“Most offer great amenities, a sense of space and, in Johannesburg, a premium is placed on the safety these estates offer.
“They have become one of the rare places where you can still see children riding their bikes to the park,” he added.
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In addition, Van Eeden said that other services are also migrating to these estates with hospitals, schools, and shopping centres being constructed to serve what is becoming fully enclosed communities in some instances.
“All this is increasing the attractiveness of these estates, so much that we are now finding that high rise developments are having to dedicate valuable floor space to create common areas such as pools and gymnasiums to attract similar levels of demand,” he said.
“In my opinion, this trend towards estate living (within Gauteng specifically) will remain for the foreseeable future.
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.
“I can only see the demand for Estates in and around Johannesburg increasing even further in the next couple of years. The only hurdles being the increasingly high pricing, a combination of proximity to the workplace and inevitable returning traffic,” van Eeden said.
Goslett echoes his sentiments and is curious to see what the future has in store.
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“Right now, it is difficult to predict how long companies will remain flexible with their remote working policies.
“If more companies return to the office full-time, I predict that demand will shift back towards city centres, which could have an effect on estate pricing.
“But, this is only a prediction. The best way to stay on top of market trends as and when they change is to keep in touch with a local real estate professional who can send you regular updates on how your market is performing,” Goslett said.
