Security Estates continue to gain favour.
Category News
- It is sometimes said that in Cape Town, and elsewhere in SA, security estates are rapidly becoming the norm in new developments and can generally command higher prices than similar freestanding homes.
Commenting on this recently, Rowan Alexander, Director of Alexander Swart Property, said that while there is truth in this statement, it should not be taken as a sign that freestanding homes have lost their intrinsic value.
City of Cape Town figures show that the new trend is most evident in the R1, 5 to R3 million house price ranges. Security estate homes in Cape Town in this price bracket, says Alexander, have in the last few months sold on average for R2, 284, 000 whereas freestanding homes in this bracket sold at an average price of R2, 180,000. What is more, says Alexander, in the northern suburbs all current new developments are for security estates. Higher up the price scale i.e. above R7million, the gap between security estate homes and those not in estates becomes even more pronounced: homes in estates in this bracket have recently sold at an average of R8,921,000 while those not in estates at an average selling price of R6,819,000
Even in the lowest Cape Town price bracket (R400, 000 to R800, 000) says Alexander, security estates are now held in high regard and can attract slightly higher prices: those in estates have recently sold at an average price of R678, 000 while those not in estates at an average price of R620, 000.
This trend, he added, is also noticeable in Johannesburg, which was the first city to initiate security estates. Here the average estate home across the board (i.e. in all price brackets) has recently sold at R2, 775, 000 while those not in estates sold for an average of R1, 920,000.
Alexander added that the swing to security estate homes is a relatively recent phenomenon in the South African residential scenario and it does not mean that freestanding homes, which comprise some 90% of the total market, are now less valuable; even though residential property price growth has flattened out slightly in the last year. It does mean though that even limited estates, with limited security e.g. an electric perimeter fence and a remote controlled entrance boom, will be in increasing demand.
For further information, please contact Rowan Alexander on cell phone 082 581 3116 or by email: rowan@asproperty.co.za
Author: Independent Authour
