You can put a price on security

Security remains one of the main factors influencing home buying decisions in Gauteng, and if one wants to see the influence it can have on property values, one need only look at the difference in prices between access-controlled areas and neighbouring areas without such controls.

Figures from property data company Lightstone show, for example, that while prices in the closed Johannesburg suburb of Hurlingham have risen by about 42% over the past five years, those in nearby Parkmore have risen only 32%.

“And there are many other such examples all over greater Johannesburg, where the Roads Agency says at least 350 boomed-off enclaves have been created in the past 15 years,” says David Jacobs, Northern Region and KZN Regional Manager for the Rawson Property Group.

“Strong demand for homes in the boomed-off areas of Morningside Manor, Gallo Manor and Wendywood, for instance, has resulted in these areas achieving house price increases of up to 49% in the past five years, which is well in excess of the average.

“To the east of the city, prices in Kensington have only grown about 14% in the past five years, despite the high demand for homes here due to its proximity to the city centre, while prices in the closed-off areas of Edenvale, considerably further away, have risen by as much as 58%.”

Meanwhile in Tshwane, he notes, the Lightstone figures show that the average home price in Moreletapark, where there are several boomed enclaves, has risen by 24% over the past five years, whereas prices in neighbouring Waterkloof Glen have risen by an average of only 11%.

And similarly, prices in the closed-off area of Lynnwood Manor have grown by an average of 49% over the past five years, while those in neighbouring Lynnwood have only grown by an average of 33%.

“So, apart from the immediate gains of a reduction in crime – and possibly a reduction in one’s household insurance premium - living in a secured suburb also delivers a demonstrable long term financial advantage for homeowners,” says Jacobs.

“Among prospective home buyers, on the other hand, properties in boomed off areas are popular because they tend to offer more privacy than homes in security complexes and gated estates, and are often also cheaper and more conveniently located for the buyer’s purpose.”

This is important for home sellers, he says, because suburban homes increasingly have to compete in terms of security perceptions against those in actual estates.

“Buyers are well aware of police crime statistics which show that although some types of crime have decreased over the past nine years, the number of home robberies/ burglaries has risen by some 70%. And they are no longer satisfied with vague assurances that an area is ‘relatively safe’ or has a ‘low crime rate’.

“What is more, they don’t just want booms and guards at the entrance to the suburb. They also want the individual homes they buy to come complete with their own security equipment, including burglar bars, security gates, security lights and an alarm system at the very least.”

Jacobs says most buyers are just not willing to move into an unprotected home, even for a short while, and that the few who are prepared to buy and then install their own security provisions are increasingly driving a hard bargain when it comes to making an offer.

“They will calculate the total cost of a top-of-the-range system and simply insist that the sellers subtract that amount from their asking price.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us