FANCY PRICES

With the cost of a home in Sandhurst averaging around R20 million and heading for hundreds of millions, living in the country’s second most expensive area is for the affluent only

STAYING within a 1km radius of Sandton City should be the source of joys aplenty. Sandhurst offers just that, but the question most of us would find apt to ask is: At what price?

Needless to say, the answer is steep, if only one could factor not only the mark-up price but also the ancillary charges that come standard with the day-to-day business of living here.

“You may need net assets of R1 billion,” says Tracy Clare of Firzt Realty, who has handled scores of deals in Sandhurst, known as South Africa’s second most expensive suburb after Cape Town’s Clifton, in terms of affluence.

Property prices for Sandhurst average at just under R20 million and there are many homes here worth hundreds of millions of rand.

“The selling price on average is R16m,” says Clare, who cited properties then trending that included a five-bedroom home for R80m and a seven-bedroom home with an asking price of R150m.

In the event you do find or settle into your dream home, you would need to ensure your pockets are deep enough to foot the exorbitant costs that come with owning a grandiose property of such magnitude, cautions Clare.

“The cost of running these properties will run into hundreds of thousands of rand. Expect to pay higher rates and taxes, pay more for electricity and water and pay more towards 24-hour security and the installation of hi-tech security measures.”

The affluent and elite buyers purchasing status symbol properties here include a sizeable component of foreigners, larger families, people who travel overseas and who prefer the lock-up-and-go lifestyle the sectional title and cluster homes here present, as well as captains of industry.

This kind of buyer would normally be attracted by the roads that are boomed off around the clock.

Addresses in Killarney and Coronation roads are as upmarket as they can get, with prices as high as R150m achieved there, says Clare. For those who can afford it, however, it is all worth it.

Clare says: “There’s a fantastic return on investment as the suburb is sought after.”

She says properties in Sandhurst famously hold their value.

“You’ll be close to the new financial hub of Sandton, Sandton City, the Gautrain and top private schools. It has the best security, which is good for families moving into the suburb.”

The higher returns to be expected also mean developers will try to purchase land as close to Sandton as possible, according to Clare.

One would note a trend of owners trying to hold on to their properties for long periods and others investing to secure their futures. Thirty-two percent of owners have owned their properties for 11 years or more with 88% of buyers over the past year younger than 50.

For comparable values or lifestyle, look to Bantry Bay in Cape Town, which at R15 325 000 average is slight more affordable.