Developers should seek new pastures in retirement villages

Developers who have been hard hit by the decline in demand for residential property would do well to focus fresh attention on the under-supplied retirement village market, particularly in the less traditional retiree areas.
Gerhard Kotzé, CEO of the ERA South Africa property group, says that while there remains an over-supply currently of conventional cluster and sectional title homes due to the recent recession, the shortage of retirement homes, particularly of more affordable units, remains acute.
“This is notwithstanding the facts that people are living longer and that there is considerable buying power in the retirees’ market.” 
He says the problems besetting the retirement village market are well documented and it’s common cause that waiting lists are lengthy, entry costs are high even under life rights purchase and that retirement village levies are often hefty.
“Clearly what is needed is a re-think by developers, municipalities, architects, building suppliers and other stakeholders in their approach to meeting the demand for retirement villages.
“One solution is to seek out suitable rural towns and capitalise on their quiet lifestyle, security, low development costs and ample land – as has already happened in places like Marquard in the Free State, Dundee in the KZN midlands, Naboomspruit (Mookgophong) in Limpopo, Bedford in the Eastern Cape, Stilbaai in the Western Cape and some Karoo towns.
“There is indeed a discernable if still far too limited trend in this respect, reflected in the emergence of attractive, affordable retirement village schemes in various parts of the country.”
Moreover, Kotzé says, there’s potential in innovative conversions and upgrades of the likes of defunct holiday resorts and mining villages which have the basis of infrastructure still solidly in place and which lend themselves to makeovers into inexpensive, perfectly acceptable retirement villages. 
“Further impetus for my thinking comes from the latest building statistics which underline the fact that residential building completions and new plans passed are still very epressed. 
“Indeed predictions by Absa and FNB are that 2010 will be another tough year for the residential building sector with a gradual improvement in the latter half of the year.Given this scenario it seems only logical to seek pastures new and retirement villages offer real possibilities in this respect.”
Issued by ERA South Africa

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 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.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us