Security concerns driving more South Africans to estate living
The need for tight security is pushing more South Africans to buy pricier homes in estates rather than neighbourhoods.
Seeff Property chair Samuel Seeff said deeds office trends show a clear shift to freehold properties on estates despite the higher average house prices.
Data from Lightstone also demonstrated the shift.
While freehold estates comprise just more than 6% of all freehold housing stock, it accounted for 20% of all units and 32% of the total value transacted for freehold property in 2021.
This is up on 2020 (18% units and 4.52% value) and slightly better compared to 2019 (17% units and 31% value).
Seeff said the desire for security and a better quality of life was driving the trend.
Estates have been among the best performing neighbourhoods, with average price growth of up to 25% over the past five years.
The latest Financial Mail Top Suburbs Survey listed a number of luxury estates among their choice of best growth neighbourhoods over a one, three and five-year period.
While the Cape (25% of estates) has fewer housing estates compared to Gauteng (more than 50%), those in the province, especially around the Cape Town metro, seem to attract the highest average price growth.
“Cape estates also tend to achieve the highest rental rates. Seeff, for example, concluded a rental of R390,000 per month (paid in advance for the year), in a joint-deal in Val de Vie estate over the last year,” said Seeff.