Gated Estates outperform residential market
Category General News
The appeal of living in secure, gated estates has grown so much over the past decade that the sector now accounts for more than a quarter of the value of SA's residential property market.
A survey, by the Association of Residential Communities, found that home-owner associations in gated estates had assetts of R 800bn under their management-almost 27% of the total property market value in the country and double the value of SA's retail shopping centres.The association's president, Mr. Jeff Gilmour, said yesterday a surge in popularity in secure living was due to the "safety and freedom of movement that homeowners enjoy". This trend was likely to continue.
The demand was reflected in the higher than average value of these homes, with 87% valued at more than R 2m, 34% exceeding R 5m, 16% above R 7m and 8% valued at more than R 20m. ABSA home loans senior property analyst, Jacques du Toit said given increased security problems and greater interest in living in "quieter areas", the demand for properties in gated estates, and their value, would continue to grow in the future.
Author: Business Day, 2nd October 2012