Housing in Southern Africa

July 2015

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.

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

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.

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Estate living reaches new height

Infrastructure & Mixed Use