Property News South Africa

Covid-pandemic reignited demand for golf estates with top prices paid

The Covid-induced property boom reignited the demand for golf estate homes with some estates achieving outstanding prices according to research by the Seeff Property Group.
Source: Supplied. Pinnacle Point, Mossel Bay.
Source: Supplied. Pinnacle Point, Mossel Bay.

While it is usually more about the lifestyle than investment value when it comes to golf estates, these have seen good growth of around 8% to 10% on average on the back of the pandemic-induced property boom. In some estates, values have practically doubled over the last five to eight years, especially those in the Cape.

The highest volume of golf estate sales have been in the R3m to R14m range. For upper-end estates, it ranged between R6m and R18m with a few exceptional sales above R20m.

Rental rates for golf estate homes are also edging up with estates in high-end areas such as Constantia or the winelands achieving rentals of well above R60,000 to over R100,000 per month.

Aside from local buyers, golf estates have become popular second-home destinations for both local and international buyers. They are also a popular choice for semigration buyers, not just those moving to the Cape, but also to areas such as Centurion and Pretoria East, Zimbali and Hartbeespoort.

Cape golf estates are achieving some of the highest prices in the country. Top golf estates such as Steenberg in Constantia (Cape Town), arguably the top golf estate in the country, now boasts a median price of R13.9m as at this year. The current average for Fancourt in George is around R8.4m.

In the Stellenbosch and Paarl area, estates such as Boschenmeer (Paarl), and De Zalze (Stellenbosch) have seen prices double over the last 10 years. Notably, a substantial number of sales above R20m were concluded in De Zalze Golf Estate last year. With a median value of R12.7m as at this year, De Zalze now ranks among the top golf estates in the country.

Meanwhile, on the Blouberg side of Cape Town, Sunset Links now commands a median price of R7.45m while Atlantic Beach Golf Estate commands R6.1m, putting both estates among the top in the country.

Garden Route golf estates remain among the most popular including Fancourt which has long reigned as the top golf estate in the country, but has only achieved a median price of around R8.4m over the last year.

Golf estate gems and rising demand

According to Pieter Jordaan, licensee for Seeff, an up and coming golf estate in George which is attracting semigration buyers is Kingswood which already boasts a median price of R4.65m.

Pinnacle Point in Mossel Bay remains among the most sought-after and scenic, according to Herman Spies, sales manager of Seeff Mossel Bay. The estate now boasts a median price of R4.1m with sales concluded over the last year of between R7m and R9.5m according to Lightstone data.

Knysna’s Pezula (average price of R5.5m) and Simola (average price of R4.4m) also remain top contenders with a few sales concluded around R7m to R11m over the last year. St Francis Links Golf Estate is also very popular.

In the KZN area, Zimbali remains the most sought-after golf and lifestyle estate with an average price of R8.55m and a highest price achieved by Seeff over the last year of R17.95m according to Andreas Wassenaar, licensee for Seeff Zimbali. The market remains most active in the lower price bands though for various reasons.

Gauteng golf states such as Woodhill, Silver Lakes and Blue Valley in the Pretoria/Centurion areas, and Dainfern in the Midrand area have all seen good activity during the pandemic.

Other popular golf estates include the Eye of Africa (average price of R4.55m) in Johannesburg South; and in the Roodepoort area estates such as Eagle Canyon (R6.1m average price) and Jackal Creek (R3.4m average for freehold) are popular, as is Pecanwood Estate (R3.65m average price) in the Magaliesberg area.

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