Pretoria East has become one of the city’s most sought-after residential estate destinations, where the demand for security lifestyle accommodation is increasing.
This is according to Juanita du Plessis, Estate Specialist for Lew Geffen Sotheby’s International Realty in Pretoria East, who says estate property values have shown steady growth since around 2010, but have increased substantially during the past year.
As a result of this, the average price of some estates is now double what it was five years ago.
“We are also beginning to experience stock shortages, especially in developments offering excellent security coupled with first-class lifestyle amenities like Silver Lakes Golf Estate, where 115 sales were recorded in the 12 months between 1 July 2015 and 30 June this year” says Du Plessis.
The greatest demand for estate homes are between the R1.5 million to R2.8 million price band.
These however, are becoming increasingly less prevalent and buyers are now willing to pay a premium for estate living and the benefits that can be enjoyed.
“At Silver Lakes investors can expect to pay around R2.5m for a three-bedroom sectional title unit and while the average house price is between R3.5m and R4m, there are many properties priced between R4.5m and R6m. There are also homes in the ultra-luxurious R10m plus bracket.”
Du Plessis says that location is a key pricing factor on estates. The most sought-after properties are homes which are situated closest to the golf course, overlooking the fairways, or located in a picturesque and natural setting.
“We are currently marketing three prime properties at Silver Lakes; two with fantastic views of the fairway as well as a luxurious house in the heart of the nature reserve” says Du Plessis.
According to Du Plessis, security is a priority for most people wanting to purchase a home on an estate, but it’s not the only factor.
According to Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, the most popular estates are those with recreational features on site, such as golf courses, gyms, tennis courts, restaurants, walking trails and parks where families can safely enjoy outdoor activities.
This indicates that lifestyle is also a significant drawcard for most estate home buyers.
“The most exclusive and sought-after developments are literally self-sustaining villages. Lombardy Estate, for example, not only offers beautiful surrounds with greenbelts, streams and wetlands that teem with birdlife, but also has a boutique hotel, a spa and an office park” says Geffen.
Residents of the estates are able to enjoy an exclusive lifestyle in a safe and secure environment that allows them to escape from the bustling, fast-paced city lifestyle.
Geffen adds that the prestige of an enviable address is also appealing to many investors, especially upwardly mobile professionals.
According to Du Plessis, there has been a noticeable increase in the number of buyers in the 35 to 45 age group who are more likely to be able to spend R3m-plus on a home.
“Conversely, there has been a drop in first-time buyers as the market boom has now placed most estate properties out of the reach of younger investors whose budgets seldom extend beyond R2m and they also require a substantial deposit and spotless credit record to be successful with their finance applications.”
The increase in residential growth in Pretoria East has further encouraged commercial and retail development to meet the demands of the rapidly growing population.
“Everything residents in the area need is now on their doorsteps – as well as new schools that were built to support the population expansion – and neighbourhoods attract a good mixture of young professionals and young families, with kid-friendly activities widely available” says Du Plessis.
In addition to the area’s convenience, two major highways are also located in close proximity - allowing for easy commutes to Witbank, Johannesburg and Pretoria’s CBD.
Pretoria East is set to welcome a new development to the area. It will soon be home to a new R44 billion “nodal development”, more commonly referred to as “the East City”.
The Hazeldean Development will include a residential area, a 100,000m² mall as well as hospitals, a business park and hospitality and tourism components.
With several phases already complete, the suburban precinct also includes the construction of a new R90 million road – the PWV17 – which will link the N4 and the R21.
According to Du Plessis, this development is an ideal solution for future investments, especially with the demand for secure lifestyle accommodation.
“The versatile housing options cater for everyone from young professionals to diplomats, including investment buyers seeking good rental returns and, of course, families.
“And lifestyle quality will further be enhanced by Hazeldean’s focus on energy-saving mechanisms, greener ways of building and a high-tech communication infrastructure” concludes Du Plessis.
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