There is continued high demand and capital growth in secure lifestyle estates in South Africa, Dr Andrew Golding, CEO of the Pam Golding Property (PGP) group said on Thursday.
About 2.5% of residential properties in South Africa are situated in such estates – 15% in terms of total value. Geographically about 50% of lifestyle estates are in Gauteng and 25% in the Western Cape.
The increased demand and capital growth is due to a growing number of buyers moving up into the higher-value markets, according to Golding.
“Estimates reflect around 318 000 residential properties within secure gated communities, with a combined value of R643bn at an average of R2m per property. This is almost three times more than the national average of R700 000 per home,” said Golding.
On Baronetcy Estate in Cape Town’s northern suburb of Plattekloof, the trend towards an estate lifestyle is increasingly evident, according to Golding, particularly among a younger age group from late 30s to early 50s.
First time buyers also look to the northern suburbs in Cape Town, showing a preference for townhouse units in complexes, priced from around the R2.5m to R3.5m mark.
As for the housing market in general, he said PGP’s view is that the South African housing market will likely continue to be resilient “in spite of the likelihood of the national economy continuing to flounder”.
The resilience in the market is underpinned, in his view, by the rapid growth in the SA population and the consequent housing demand, together with the ongoing shortage of new housing.
“In addition, a number of regional and suburban housing markets are likely to enjoy vibrant growth rates reflecting the migration of South Africans between provinces, the level of economic activity in the metro areas and the extent to which different metros are able to meet the housing demands of their local populations,” said Golding.
Another factor influencing the local property market he pointed out, was the growing affluence in South Africa’s metro regions, even as growth in the national economy continues to lose momentum.
In Jeffreys Bay, the secure estate of Marina Martinique has experienced unprecedented growth in the number of new houses being built and there are not many waterfront stands under R 800 000 on the market at present.