Scarcity and security driving success of estate living

The lifestyle attractions, as well as growing concerns about security and municipal service levels nationally, are driving the success of secure estates countrywide. 

The Cape is no exception and the Southern Suburbs and South Peninsula areas are also feeling this effect markedly with both local and upcountry enquiries at high levels. However, scarcity of well-located land available for development is proving to be a major factor pushing up sales prices.

Secure estates are selling out fast and attracting buyers willing to pay a premium because the stock trickling onto the market in the most sought after parts of the Cape does not appear to be meeting the demand.
Magnus McDowall of Flagstone Property Developments, a substantial investor in f the development stock of Chapman’s Bay Estate in Noordhoek, said the supply pipeline is being choked by a scarcity of suitable land together with the complex and onerous legislative environment and consequently delays associated with obtaining all the necessary development approvals.
Prospective developers of secure estates also have to consider the operational costs, passed on in the form of levies. In the context of the Western Cape, particularly in the Southern Suburbs and the South Peninsula, there is a shortage of land parcels big enough to meet the need for enough units to keep these levies at a manageable level.
“This is compounded by the reality of a legislative environment where town planning and environmental requirements can take many years to pass through the system. For example Chapman’s Bay Estate has taken 14 years to get to this stage of development,” said Mark Tame of Percipient Property Solutions, the Joint Development Managers.
The high level of demand coupled with a limited supply has meant that the majority of well executed secure estates in Cape Town have shown meaningful capital growth, particularly for buyers who have shown confidence at an early stage. “This is frequently the case and research indicates that properties in nearby estate Lake Michelle in Noordhoek, Stonehurst and Silvertree Estates in Westlake benefitted from a material escalation in prices as the number of available plots diminished,” said McDowall. “In fact we have already seen the same pattern emerge at Chapmans Bay Estate where the Townhouses values have escalated very significantly from launch as we approach complete sell out”.

The rate of demand at the 47.5 hectares Chapman’s Bay Estate, which will feature 144 contemporary homes, has had a further beneficial impact on purchasers as the civil engineering phases have been accelerated to such an extent that infrastructure on the entire estate is expected to be completed by mid 2016 and building activities will therefore be completed sooner. Chapman’s Bay Estate has sold over 70% of available properties in the first five phases, with up-country South Africans, attracted by a combination of security, a well-managed Metro and the lifestyle that Noordhoek offers, making up a significant portion of buyers.
“In excess of 25% of Chapman’s Bay Estate buyers are from outside the Western Cape, split about 60% from Gauteng and 40% from KwaZulu-Natal. Many are business people choosing to live with their families in the Cape and to commute to their places of work up country,” said Tame.
“Secure estate living, with an estate manager taking onboard the responsibility for the environment, roads and other infrastructure, is increasingly attractive for buyers wanting to live in an environment that is well maintained, clean and above all safe.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us