The desire for one-stop living in the Covid-19 era has propelled more South Africans, especially the wealthy, to seek refuge in swanky residential estates.
The trend has been reviewed by Sandton-based wealth intelligence firm New World Wealth and luxury lifestyle development Steyn City Parkland Residence.
New World Wealth’s head researcher Andrew Amoils found that, since June, an estimated 48% of SA millionaires, with wealth of $1m (about R15m) or more, live or have second homes in lifestyle estates.
“This figure has been rising steadily over the past decade; it stood at around 30% in 2010,” said Amoils.
Currently, there are just over 38,000 high net worth individuals living in SA.
— Andrew Amoils, New World Wealth
“Notably, SA is home to over twice as many millionaires as any other African country. SA ranks 30th in the world by this measure, ahead of major economies such as Greece, Portugal and Turkey.
“Currently, there are just over 38,000 high net worth individuals living in SA,” he added.
The country is known as a global pioneer in estate living and is home to many of the world’s best lifestyle estates.
Estate living is also popular in the US, Spain and Portugal, and is starting to take off globally, especially in the United Arab Emirates, New Zealand and Mauritius.
“Estate living is on the rise in SA, especially among the wealthy. Buyers in SA are increasingly moving towards estates that have apartments.
“In line with this, most new luxury developments in SA focus on apartment living rather than houses. Notable examples includeJohannesburg’s Brookfield at Royal and Steyn City’s 104 on Creek, and Umhlanga Arch. Apartments have several advantages over houses when it comes to the convenience of a lock up and go lifestyle, and the fact that they are much easier to maintain,” said Amoils.
The research shows there is a movement towards wildlife and parkland estates, where there is ample space to explore.
Lifestyle estates with beautiful parklands and wilderness areas have become more popular as buyer seeks more open space.
— Andrew Amoils, New World Wealth
Retirement estates are also becoming more popular.
According to Amoils, most developers are now creating small neighbourhoods within their lifestyle estates, as opposed to the old model where houses were spaced evenly around the entire property.
The new model allows for more parkland and open spaces between the neighbourhoods.
“It also allows for a community atmosphere to develop, where you can get to know your neighbour.”
He said the Covid-19 pandemic has also had an impact on where people choose to live.
“Lifestyle estates with beautiful parklands and wilderness areas have become more popular, as buyers seek more open space.”
“Many high net worth individuals have chosen to work remotely and live in smaller towns. For instance, a large number are now working remotely from affluent small towns such as Hermanus, Plettenberg Bay and Franschhoek.
“Lifestyle estates in these towns have benefited,” he said.
Reasons for its rising appeal include:
- Security and privacy — access gate, private security personnel;
- Lifestyle and community — large open spaces, communal leisure facilities, children’s playgrounds and schools;
- Facilities — in-house gym, spa, golf, horse riding, tennis, cycling, fishing and jogging paths; and
- Limited and controlled traffic — safer for children.
Seeff’s Gerhard van der Linde said the demand for luxury estates, including golf estates, is at the highest level in three years.
Pre-Covid, only 42% of people preferred to live within the estate where they play golf. This has since increased to 61%.
— Gerhard van der Linde, Seeff
He believes the demand is “driven by the desire to enjoy a better lifestyle closer to home so you do not need to be so confined indoors”.
“If we look at the example of the Woodhill Golf Estate in Pretoria East, Lightstone data shows activity this year is the highest in five years, such is the demand for homes in the estate.
“The trend is also not just peculiar to South Africa.
“A recent article in golfweek.usatoday.com, for example, highlights that the desire to live in an estate with a golf course has increased dramatically in the USA since the onset of the Covid pandemic.
“Pre-Covid, only 42% of people preferred to live within the estate where they play golf. This has since increased to 61%. Golf estates offer a lot more than just security and come with a host of amenities and facilities,” said Van der Linde.
“Top-class security is the first vital aspect buyers look for as they want to know that they can live and enjoy leisure activities in a secure environment. Property in these estates is considered an excellent investment and buyers are prepared to pay a bit more for the security and luxury of having all of these amenities on their doorstep.”
