Escape to a scenic Winelands estate home from R3.5m
Homes situated within estates are selling faster than any other residential property in the Cape Winelands areas of Stellenbosch and Somerset West.
This five bedroom house in De Zalze Winelands Golf Estate, Stellenbosch, has five bathrooms, an open-plan kitchen and a family room with fireplace, underfloor heating and air-conditioning. It is selling for R16.95 million - click here to view.
This is according to Louise Varga, area manager for Pam Golding Properties, who says it’s not surprising that both sectional title and freehold properties within secure lifestyle estates are being snapped up far quicker than their freestanding counterparts in the suburbs.
She says this is despite the fact that most buyers ‘buy up’ when relocating to an estate, while existing homeowners may often upgrade to a larger home within the same estate.
Varga says apart from generally achieving higher capital growth at a faster rate, homes within popular estates can yield higher rental income, ranging from R20 000 to R45 000 per month, which is of particular relevance for buy-to-let investors.
“For good reasons, we’ve seen rapid sell-outs at a number of estates. Close to town in Stellenbosch, at Brandwacht Aan Rivier, comprising 120 erven, we already had a waiting list of 260 potential buyers when the development was launched, resulting in an immediate sell-out of the entire estate,” she says.
“Building activity has been incredible in the five years since launch date and this estate is already reaching maturity,” she says.
Indicative of the sustained high demand which is driving up prices of properties in prestigious, well-positioned estates, at the 300ha De Zalze Winelands Golf Estate on the banks of theBlaauwklippen River, all 350 erven in four phases were recently sold, with the price rising for each subsequent phase.
Varga says homes in De Zalze have been achieving excellent capital growth in recent years. Five years ago entry level prices started at around R4 million to R5 million, while currently at entry level there is only one house available, priced at R6.2 million.
Varga says as an example, a vacant stand of 1 000sqm which sold for R1.1 million in 2005 fetched about R4.5 million in 2008 and R6 million in 2010. This was despite the fact that the last buyer had to pay R22 000 per month penalty until he built and received the occupation certificate from the council. Such is the high demand for this prime residential estate.
Homes in De Zalze have been achieving excellent capital growth in recent years. Five years ago entry level prices started at around R4 million to R5 million, while currently at entry level there is only one house available, priced at R6.2 million. Prices of homes then jump to R11.9 million for a sale just concluded, and range up to R32 million.
“In nearby Somerset West estates, homes in the R1.4 million to R3.5 million price bracket sell within two to four weeks, while by comparison, freestanding homes not within estates would take around four to eight weeks or longer to sell,” says Varga.
If priced competitively with similar homes that are available, she says an estate property can sell in days.
“Our statistics show that in the last 12 months, in the R2 million price range, 37% of all transfers were in estates. In the R4.5 million price bracket 59% of a total of 196 transfers took place in estates, which reveals that the higher priced estates are more popular than freehold properties outside estates,” she says.
La Piazza, a development comprising 10 homes in Parel Vallei in Somerset West, priced at R1.8 million each, sold out quickly in 2005 and would now transfer at around R3.3 million if they came into the market.
This property in Boskloof Eco Estate, Somerset West, has three bedrooms, an open-plan living area with fireplace, study, jacuzzi and patio. It is priced at R7.5 million - click here to view.
Consisting of 62 properties, Meerhof Estate also sold out rapidly and developed into an attractive upmarket estate, with stands of 600sqm and homes of 240sqm to 320sqm and scenic sea views. Having originally sold in 2010 for prices around R2.2 million, asking prices are now over R4 million.
Varga says unlike Stellenbosch, which is landlocked with no spare land for development and a rezoning process for agricultural land taking up to 15 years or more, Somerset West still has tracts of land which can be developed east and west of the town.
“There is also good value for money to be had in Somerset West. Many of our buyers are families with pets, and are sometimes restricted when buying in estates because of the pet rules,” she says.
“However, we have two estates, Tre Donne and High Riding, located 7km outside the town to the east where stands of 3 000sqm to one hectare attract families who wish to keep horses, grow a few small scale crops and generally enjoy the generous open space.
“These estates are gaining in popularity as prices are now averaging at R3.5 million, which represents excellent value, especially considering the quality of the homes and lifestyle. The views are scenic and the homes are new, about four to five years old, with different and interesting designs and architecture.”
She says properties in Somerset West have doubled in price in 10 years. More security estates are being built to cater for the high demand, fetching prices between R6 million and R12 million at the top end for stands of about 1 000sqm and dwellings of 450sqm.
Outside the estates in the suburbs, the larger freestanding homes which are older with mature, treed gardens but dwellings that need upgrading are selling for lower prices of around R4 million to R5 million for stands of 2 500sqm and homes of 450sqm.
"We have two estates, Tre Donne and High Riding, located 7km outside the town to the east where stands of 3 000sqm to one hectare attract families who wish to keep horses, grow a few small scale crops and generally enjoy the generous open space," says Varga.
“The security estates in Somerset West tend to have smaller stands than the freestanding properties in general, so although the initial price of the home is higher, the maintenance and running costs are lower, which is an attraction,” she says.
“Comparable homes in the same suburb would also probably see a 20% to 30% difference between estate and freestanding rentals, with the former achieving the higher yield.”
So exactly what is it that is attracting an increasing number of home buyers to estates?
Varga says both the demand for estate living and estate property price growth is determined and fuelled by a number of factors, such as proximity to major business centres and schools, security, quality lifestyle attractions such as leisure and sports activities and aesthetic appeal, quality and design of houses and resale potential.
A further drawcard is the fact that the sizeable monthly costs for water, electricity and garden maintenance incurred for large, freestanding properties are replaced by shared costs and hassle-free estate management.
“Quality of build and design is not to be underestimated on the priority list for home buyers. As estate living became high in demand, particularly during the past decade, homes in estates are generally newer and more modern, with contemporary designs and finishes and, increasingly, with the latest technology and ‘green’ energy saving features.”
Buyers of estate property also seem to be moving towards a younger generation, many young couples or with small children. In Somerset West about 18% of estate buyers are between 18 and 35 years.
At the other end of the scale, more mature buyers are moving from large family homes into more compact, manageable properties in estates.
“In Stellenbosch, many estate buyers are locals who relocate from freestanding homes. Some of the younger buyers move from their rental, starter home or apartment elsewhere in the town to build their dream home in an estate. We also see a migration of buyers from the northern provinces,” says Varga.
“A home on an estate does come at a price. In De Zalze Golf Estate there is hardly any stock available in the price range below R10 million, which is the higher to top end of the residential market in Stellenbosch.”
Lizette Botha, Pam Golding Properties agent in Stellenbosch, says in Digteby Estate, where they see a large percentage of younger buyers, the last four properties which were recently sold achieved prices between R4.15 million and R5.05 million for a comfortable family home. An older family home in a suburban area in the town would achieve an average price of R3 million to R3.8 million.
Pam Golding Properties agent, Gail Gould, says Somerset West also has estates in good areas where one can acquire a home from R1.6 million upwards. At the higher end of the market at the 51ha Boskloof Eco Estate, 100 homes with views, can be purchased from R5 million.