All-in-one prop­erty so­lu­tion

Res­i­den­tial es­tates hit the mark with buy­ers for in­vest­ment value and life­style

Weekend Argus (Saturday Edition) - - PROPERTY - SATUR­DAY

LIFE­STYLE is a strong at­trac­tion for liv­ing on a res­i­den­tial es­tate, but the sound in­vest­ment value – in cap­i­tal ap­pre­ci­a­tion and po­ten­tial rental in­come – also speaks vol­umes to prop­erty buy­ers across the coun­try, says Dr Andrew Gold­ing, chief ex­ec­u­tive of the Pam Gold­ing Prop­erty group.

“Es­tate prop­er­ties have stay­ing power and usu­ally per­form bet­ter than sim­i­lar prop­er­ties in neigh­bour­ing suburbs. Ac­cord­ing to Light­stone’s data for the na­tional res­i­den­tial prop­erty mar­ket for 2016 to Au­gust, house prices re­flect av­er­age price in­fla­tion of 5.8 per­cent. In con­trast, the As­so­ci­a­tion of Res­i­den­tial Com­mu­ni­ties (ARC) web­site states that an­nual house price in­fla­tion in es­tates is 7.5 per­cent.”

Gold­ing says that es­tates ac­count for around 22 per­cent of the prop­erty mar­ket’s to­tal sales value – up from 20.5 per­cent be­fore the re­ces­sion and re­main­ing fairly sta­ble since late 2013 – and unit sales in es­tates make up around 14 per­cent of the to­tal mar­ket.

“In Gaut­eng es­tate sales have been grad­u­ally de­clin­ing since late 2012, but this eco­nomic pow­er­house re­gion still ac­counts for the largest per­cent­age of the to­tal value of es­tate sales in South Africa, at around 55 per­cent. The Western Cape has a smaller but grow­ing share of to­tal es­tate sales of close to 29 per­cent. In­ter­est­ingly, in both Gaut­eng and the Western Cape the R3 mil­lion-plus price band is a grow­ing sec­tor,” says Gold­ing.

Among the ma­jor met­ros Pretoria in Tsh­wane Mu­nic­i­pal­ity is where the largest to­tal num­ber of units were sold in es­tates, whereas Johannesburg’s es­tate mar­ket is the largest by value. How­ever, this margin is de­clin­ing as the value gen­er­ated by both Pretoria and Cape Town is in­creas­ing fast.

Ac­cord­ing to ARC there are about 6 000 gated com­mu­ni­ties in the coun­try worth a to­tal R650 bil­lion.

These com­prise around 320 000 res­i­den­tial prop­er­ties at an av­er­age value of R2m each, which is three times greater than the es­ti­mated na­tional av­er­age of R700 000 a home out­side gated com­mu­ni­ties. Fur­ther sta­tis­tics from ARC show that only about 12 per­cent of the to­tal es­tates in SA are golf es­tates.

Over and above the in­vest­ment po­ten­tial and price ap­pre­ci­a­tion al­ready be­ing achieved, Gold­ing says more and more peo­ple are keen to live in se­cu­rity es­tates.

“The at­trac­tions of liv­ing on an es­tate go beyond se­cu­rity – there are many fac­tors that at­tract peo­ple across all gen­er­a­tions to an es­tate life­style. The new trend is to­wards life­style es­tates that en­com­pass work­ing, liv­ing, play­ing and shop­ping within a se­cure en­vi­ron­ment and pro­vide a sense of com­mu­nity as well as easy ac­cess to ed­u­ca­tional fa­cil­i­ties. Some es­tates even pro­vide schools on site, and the leisure ameni­ties en­com­pass a host of fea­tures with the ac­cent in newer es­tates on a broader life­style of­fer­ing rather than as was pre­vi­ously the case, fo­cus­ing mainly on one as­pect. These fa­cil­i­ties can also in­clude gyms and other sports fa­cil­i­ties and even shop­ping com­plexes.

“Gen­er­ally these es­tates are in metropoli­tan ar­eas, in­clud­ing new metro growth nodes where the cities or towns are ex­pand­ing. These in­clude Four­ways in Gaut­eng, the rapidly ex­pand­ing KwaZulu-Natal North Coast Cor­ri­dor as well as Knysna on the scenic Gar­den Route.”

In the Western Cape’s Helder­berg re­gion, as well as the Somerset West and Stel­len­bosch ar­eas there is a strong de­mand for es­tate liv­ing which is fu­elled by a num­ber of fac­tors such as prox­im­ity to ma­jor busi­ness cen­tres and schools, se­cu­rity, qual­ity life­style at­trac­tions such as leisure and sports ac­tiv­i­ties, aes­thetic and scenic ap­peal, qual­ity and de­sign of houses and re­sale po­ten­tial.

A fur­ther draw­card in res­i­den­tial de­vel­op­ments is the fact that the size­able monthly costs for wa­ter, elec­tric­ity and gar­den main­te­nance in­curred for large, free­stand­ing prop­er­ties are re­placed by shared costs and has­sle-free es­tate man­age­ment.

Not sur­pris­ingly, the top 10 es­tates in SA re­cently ranked by New World Wealth are all in prime lo­ca­tions. These in­clude Val de Vie, De Zalze, At­lantic Beach, Ara­bella, Fan­court and Pezula in the Western Cape, Steyn City in Gaut­eng, High­land Gate in Mpumalanga and Zim­bali in KZN. Al­though some lux­ury home buy­ers are in­vest­ing con­sid­er­able cap­i­tal in build­ing their dream homes with cut­ting edge de­sign, the lat­est tech­nol­ogy and eco-friendly fea­tures, Light­stone sta­tis­tics show that es­tate liv­ing is also be­com­ing more ac­ces­si­ble and is at­tract­ing a younger gen­er­a­tion of home buy­ers, with more than 70 per­cent younger than 49 years.

“Cater­ing for this mar­ket, which in­cludes first time buy­ers, many es­tates have in­tro­duced sec­tional ti­tle units with start­ing prices of un­der R1m and of­fer­ing ex­cel­lent value for money,” says Gold­ing.

Fan­court on the Gar­den Route is one of the top 10 es­tate in South Africa ranked by New World Wealth.

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