Estate boom in South Africa – with one house going for R67 million

The rise in demand for security estates in Gauteng has seen homes achieving some of the best average value growth over the last five years.

This is according to data from the Seeff Property Group, which said almost one-third of the value of property transactions in Gauteng last year was related to properties in estates. 

While freehold housing still dominates property stock in South Africa, estates are now the fastest growing. 

According to Lightstone, there are now over 6,500 gated communities and estates nationwide, comprising around 5% of market stock and accounting for about 15% of the total value of residential property.

The company explained that the demand is driven by buyers looking for a better quality of life. 

Security and a better quality of life are two of the most important aspirations of property buyers and tenants regarding estate living.

Many estates come with added amenities, such as a clubhouse, gym, and swimming pool. Some even have retail, restaurants, and private schools.

“Aside from amenities, many estates operate like mini municipalities, and residents enjoy a secure life in a well-maintained environment,” it said.

Louise Cawood, manager for Seeff in Pecanwood Estate in Hartbeespoort, said that while the estate, about an hour from Pretoria and Johannesburg, respectively, used to be a weekend getaway, it is now a permanent home for many. 

“Aside from excellent amenities and waterfront living, the estate has its own borehole water supply and sewerage works. It only relies on Tshwane for electricity and Madibeng for refuse removal,” she explained.

Interestingly, about half of all estates in the country are located in Gauteng. Seeff said that 16% of all sales transactions in the province were estate properties – full and sectional titles – which account for some 28% of the total value of all transactions.

The majority (73%) of estate sales were freehold houses. The average price of a freehold estate house is R2.45 million, double that of a standard freehold house in Gauteng, which stands at R1.13 million. 

It is also slightly higher than the national average for a freehold house in an estate, which stands at R2.36 million. 

Sectional titles in estates sell for an average of R1.52 million, notably higher than the standard sectional title price of R977,000.

Estates are also hugely popular for rentals, attracting some of the highest rental rates. 

PG van der Linde, rentals manager for Seeff Pretoria East, for example, said that estates such as Woodhill Golf Estate have attracted rates of up to R79,300 per month, and they have had listings of up to R95,000 per month for high-end homes. 

Estate houses in Gauteng achieved some of the best price growth over five years, with the price for freehold houses up by 17% and for sectional titles up by 21.6%.

Areas with a high concentration of estates include Centurion, where estates such as Midstream are basically a community, said Tiaan Pretorius, manager for Seeff Centurion. 

Aside from a vast number of homes, the estate has its own schools, medical facilities, and a host of amenities. Blair Atholl Estate is regarded as one of the most exclusive in the country.

Bedfordview/Edenvale is another popular area for estates, according to Dave Ingle, licensee from Seeff Bedfordview, who said that aside from local buyers, estates are also popular with buyers who return from living abroad.

Given that prices are under pressure and even down in some areas, Ingle said it is a good time to buy property in an estate. 

He pointed to estates currently offering excellent value, including Emerald, Thorn Valley, Bushwillow Park and Lakeside Village. 

There is also strong demand for rentals in estates with monthly rates of up to R40,000.

There are about 40 estates in the Sandton/Midrand area, including some of the most exclusive and expensive. 

Eagle Canyon in the Johannesburg North-West area is another top estate in Gauteng. It offers golfing and lifestyle amenities and a vast number of homes priced from R2.2 million for sectional titles and around R5 million for a freehold house. 

It is also hugely popular for rentals, with rates achieved between R20,000 and R40,000 and up to R70,000 per month for a super, high-end home.

Gauteng estates with the best price growth over five years for freehold houses

	Estate	Area	5-Year Growth	Average Price	Highest Price	Average Rentals
1	Woodhill Golf Estate	Pretoria East	37.5%	R5.5 million	R20 million	R15k-R95k
2	Pecanwood Estate	Hartbeespoort	32%	R3.5 million	R13.5 million	R20k-R55k
3	Thornhill Estate	Modderfontein	25%	R3.8 million	R10 million	R25k-R40k
4	Blue Valley Golf Estate	Centurion	24%	R3.6 million	R20 milion	R23k-R55k
5	Blair Atholl Estate	Centurion	22%	R12.8 million	R67 million	R40k-R65k
6	Silver Lakes Golf Estate	Pretoria East	17%	R4.4 million	R35 million	R25k-R75k
7	Kyalami Estate	Midrand	16%	R4.4 million		R18k-R40k
8	Midstream Estate	Centurion	16%	R4.4 million	R30 million	R18k-R50k
9	Eagle Canyon Estate	Roodepoort	16%	R5.1 million		R20k-R50k
10	Dainfern Golf Estate	Midrand	15%	R5.8 million	R35 million	R25k-R95k

Property in Gauteng estates

Blair Atholl Estate

Pecanwood Estate

Eagle Canyon Estate