The rise in demand for security estates in Gauteng has seen homes in estates achieving some of the best average value growth over the past five years, according to the Seeff Property Group.
Almost one third of the value of property transactions in Gauteng last year related to properties in estates. The demand is driven by buyers looking for a better quality of life. Aside from amenities, many estates operate like mini municipalities, and residents enjoy a secure life in a well-maintained environment.
Louise Cawood, manager for Seeff in Pecanwood Estate in Hartbeespoort says that while the estate, which is about an hour from Pretoria and Johannesburg respectively, used to be a weekend getaway, it is now a permanent home for many. Aside from excellent amenities and waterfront living, the estate has its own borehole water supply and sewerage works. It only relies on Tshwane for electricity and Madibeng for refuse removal.
While freehold housing still dominates property stock in South Africa, estates are now the fastest growing. There are now over 6,500 gated communities and estates nationwide, comprising around 5% of the market stock and accounting for about 15% of the total value of the residential property, according to Lightstone.
Security and a better quality of life are two of the most important aspirations of property buyers and tenants when it comes to estate living. Many estates come with added amenities, which could include a clubhouse, gym, swimming pool and some even have retail, restaurants, and increasingly private schools.
About half of all the estates in the country are located in Gauteng. 16% of all sales transactions in the province were estate properties (full and sectional titles), and it accounts for some 28% of the total value of all transactions.
The majority (73%) of sales in estates were freehold houses. The average price of a freehold estate house is R2.45m, double the average of a standard freehold house in Gauteng which stands at R1.13m. It is also slightly higher than the national average for a freehold house in an estate which stands at R2.36m. Sectional titles in estates sell for around R1.52m on average, notably higher compared to the standard sectional title price of R977,000.
Estates are also hugely popular for rentals, attracting some of the highest rental rates. PG van der Linde, rentals manager for Seeff Pretoria East, for example, says that estates such as Woodhill Golf Estate have attracted rates of up to R79,300 per month, and they have had listings of up to R95,000 per month for high-end homes. There are about 15 estates in the area, which is popular for the top schools, and the University of Pretoria, along with many embassies and government staff, also reside in the area.
Ms Cawood adds that some tenants in Pecanwood take a lease for the year, but only really occupy the home over the weekends.
Estate houses in Gauteng achieved some of the best price growth over a five-year period Gauteng with the price for freehold houses up by 17%, and for sectional titles up by 21.6%.
Gauteng estates with the best price growth over five years for freehold houses:
Areas with a high concentration of estates include Centurion, where estates such as Midstream are basically a community, says Tiaan Pretorius, manager for Seeff Centurion. Aside from a vast number of homes (full and sectional title), the estate has its own schools, medical facilities, and a host of amenities. Blair Atholl Estate is regarded as one of the most exclusive in the country.
Bedfordview/Edenvale is another popular area for estates, according to Dave Ingle, licensee from Seeff Bedfordview, who says that aside from local buyers, estates are also popular with buyers who return from living abroad.
Given that prices are under pressure and even down in some areas, he says it is a good time to buy in an estate. Estates offering excellent value right now include Emerald, Thorn Valley, Bushwillow Park and Lakeside Village. There is also strong demand for rentals in estates with rates paid of up to R40,000 per month.
In the Sandton/Midrand area, there are about 40 estates, including some of the most exclusive and expensive. Eagle Canyon in the Johannesburg North-West area is another top estate in Gauteng, offering golfing and lifestyle amenities and a vast number of homes priced from R2.2m for sectional titles and from around R5m for a freehold house. It is also hugely popular for rentals, with rates achieved between R20,000 and R40,000 and up to R70,000 per month for a super, high-end home.
Writer: Gina Meintjes
