Estates the new property class of choice |

Estates, particularly new developments are now the property of choice

18 January 2018

When South Africans consider buying new residential property, estates are now first on their list. The sector peaked in 2004 but gradually slowed down towards 2012. Over the past 5 or so years the demand for gated estates kept up with the supply mainly because the property market has been fairly active. New developments are currently very popular, with the Western Cape and particularly Gauteng leading the way.


According to the residential property research company Lightstone, the average price of a property within an estate is almost three times the national average for a freehold home. Because of this many new developments have included a sectional title component, which made gated communities more affordable for the average South African.

Mixed-use developments

Traffic congestion, unreliable and often unsafe public transport has broaden the appeal of the live, work, play concept. New upmarket estates offer the resident everything from schools to shopping and healthcare facilities. Include lifestyle elements such as swimming pools, gyms, golfing, horse riding and fishing and the demand will be there.


According to the property experts, properties in residential estates tend to show a better return on investment and hold their values well even in a sluggish economy. You have an added advantage when buying a property in a new development because there is no transfer duty, which can be a substantial saving especially when the price of the property is in the millions.

Buying off-plan is seen as a sound investment by both home owners and property investors.

New property developments are very popular with buy-to-let investors.

Forecast for 2018

The forecast, by property experts, for 2018 is that we can expect a further slow-down in property prices. The exception, the experts say, will be the Western Cape and security/gated estates, in particular new developments.

The sector will therefore grow or at least maintain its popularity even when the economy is at a slow-down.

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