Saturday, January 22

South Africa ‘pioneer in real estate life’


We continue to focus on residential properties in South Africa in this week’s issue of The properties module.

Moneyweb Insider Gold

Join heated discussions with the Moneyweb community and get full access to our market indicators and data tools while supporting quality journalism.

R63/month or R630/year

SUBSCRIBE NOW

You can cancel anytime.

In this episode, I speak with New World Wealth wealth analyst Andrew Amoils about the country’s top properties and market trends.

New World Wealth has done a lot of research over the years on high net worth individuals, both locally and internationally, as well as the luxury or wealth sector in general, including residential properties in South Africa.

The highlights of her interview appear below. You can also listen to the full podcast above or download it from iono, Spotify, or Apple Podcasts.

Andrew Amoils, Wealth Analyst at New World Wealth. Image: supplied

Reflexes

“We have been rating the best properties in South Africa since approximately 2015. Based on our latest ratings, the best properties are Val de Vie, Fancourt, Pezula, Steyn City, Steenberg, Arabella, Atlantic Beach and Simbithi. That’s in the general category of lifestyle real estate. ”

“South Africa is a pioneer in the real estate life. Well, you could call it that because properties have been big in South Africa for quite some time, since the early 1990s, while in places like the United Arab Emirates and New Zealand and other parts of the world they have started to take off only in the last few years. five years or so. ”

“I think there are several reasons for its popularity. They are becoming very popular with wealthy people because they offer a lot of security and privacy. ”

“Obviously, there is a lifestyle and a community element to [estates] in terms of parks and playgrounds. And then of course there are all the facilities. Many properties have in-house gyms, offer golf, horseback riding, tennis, biking, jogging trails. ”

“There are [also] the element of having limited and controlled traffic, which is very important to families or people with young children. Many of the properties have underpasses under the roads or have fairly strict rules about fast driving. I think that for a lot of people that appeals to them in terms of raising children on farms. ”

How do these properties appear on your top five or ten list?

“We tend to focus on luxury [estates], although that is not the only element. If you were to look only at the most expensive properties, the most expensive properties in South Africa in terms of average price are probably Silverhurst in Cape Town, Pezula Private Estate, Leopard Creek [and] An estate on Forrest Road in Inanda [Sandton] they’re probably the high-end ones. ”

“But many of the properties that we look at are high-end, they are luxury, but many of them offer apartments. Some of them are entry-level, normally around R3 million for a smaller apartment or a small townhouse. So we definitely take that into account. ”

“[However], we look at a lot of other things in terms of activities and facilities on offer. Obviously the main thing is how well the farm is maintained… We mainly focus on farms that have some kind of common areas, so in terms of general townhouse developments, we wouldn’t really consider them because they don’t. So yeah, there are several elements that we look at. ”

Is there a possibility of further real estate development in South Africa, or perhaps you expect it to sell out at some point?

“There is definitely room to grow. Many of the properties are not completely overcrowded with people, so they obviously have to grow larger. Many of the farms were built 20 years ago, high-level farms, they are not yet full; not all plots have been developed. So there is still room to grow on the existing heritage. ”

“In terms of building new properties, that part of the market could be a bit slow. But I think that the great trend that we have seen in recent years is a movement away from houses towards apartments ”.

“I think if you look at the properties in South Africa, particularly the golf properties, a lot of them were built in the 1990s or early 2000s. But if you really look, over the last five to 10 years, the Developments being made, the big ones have been Umhlanga Arch, which is obviously mixed-use, Brookfield at Royal on the golf course in Joburg. , New Downtown Steyn City, those are all apartment-like developments. I think that’s where it’s headed …

Read:

“Apartments are more convenient than houses, and for people having a big house is not as attractive as it used to be, because you have to get people to take care of maintaining the house. It is not as good as a lock-up-and-go. So obviously the fees and taxes are much higher on the houses. ”

“There is a movement, even at the higher end of the market, towards apartments and away from the type of traditional golf estates that have houses scattered around the properties and more and more estates, the same estate, but with apartment blocks within and maybe townhouse developments within them. ”

“I think Steyn City is a good example of that because it has townhouse developments, houses and apartments, different apartment developments. So that’s probably where the housing industry is headed. ”

“Obviously there have been properties for wildlife and properties for retirees. There has been a lot of growth in the last 10 years or so, but that has also started to slow down in the last two years; but I think there was pretty strong growth between 2010 and 2015. ”

“For life on a retirement farm there has been tremendous growth there, particularly on the Garden Route, in the West Coast area, over the last 20 years …

“That area is very popular for retirement properties. Now he’s starting to see that the North Coast has also started creating retirement properties in recent years. ”

Read:

“There are also quite a few in Joburg and across the country. I think there has been quite strong growth in that sector, so it is difficult to know if it is already a bit saturated. These trends tend to pick up only after many of the developments have increased, so I think the big growth in retirement properties is over. ”

“But if you can really build a fantastic retirement estate, there is always potential to get people because there are a lot of people in that age group who do have money. In particular, I think that in areas like the north coast of Natal, Garden Route and Hermanus, there is a lot of potential for retirement properties. ”


www.moneyweb.co.za

Leave a Reply

Your email address will not be published. Required fields are marked *