Putting the Multichoice decline in context
Lindsey Schutters
The rise of lifestyle estates for over 50s - a growing trend
In recent years, lifestyle estates tailored for the over 50's demographic have surged in popularity across South Africa, reflecting a shift in preferences towards age-appropriate living environments and making these developments one of the country’s fastest growing niche markets. And it’s not only this demographic that is investing.
Source: This spacious two-bedroom double-storey property in New Court at Steenberg is on the market for R11,750,000. The estate, comprises only 18 homes, and boasts communal amenities.
This is according to Stephan Thomas and David Burger, partner estate specialists for Lew Geffen Sotheby’s International Realty in Constantiaberg, who add: “While these investors are principally looking to exchange the responsibility of a large family home for low-maintenance convenience and security, a growing number of mature buyers now prefer to do so within a like-minded community of a similar age.
“Over and above the amenities and security these developments offer, they also provide a sense of community and camaraderie, fostering connections and friendships among residents who share similar interests and life stages.
“This sense of belonging is particularly valuable for those who are considering scaling back at work or even retiring and seek a supportive and engaging community in their retirement years.”
The partners note that financially secure over-50s who are scaling down are in a far better position than most property investors in the current economic slump, which is pushing property ownership further out of reach for new investors and tightening its grip on embattled homeowners with sizeable mortgages.
“At this stage in their lives they are usually selling family-sized houses that were purchased – and paid off – years ago to buy more compact, low maintenance homes with little or no mortgaging required.”
However, it’s no longer only mature buyers who are eyeing these properties: “With the spiralling demand already outweighing the supply, savvy younger investors are recognising a compelling investment opportunity to secure their future homes at today's prices while earning rental income in the interim, thereby subsidising their investment and minimising monthly bond repayments.
“This also allows them to plan properly for their old age and ensure that their capital investment holds – or increases - its value.
“And, statistically, properties in sought after estates tend to appreciate better in value over time, driven by factors such as location, amenities and, of course, demand so the potential for capital growth makes purchasing a property in an estate a sound investment choice for younger buyers looking to build equity and secure their financial future.”
Exclusive living at New Court
There are only a few such developments in the popular Constantiaberg region, one of which is New Court at Steenberg and. with only 18 homes, these seldom come onto the market.
The estate boasts communal amenities including a pool and recreation area, which are perfect for leisurely summer days, while a quaint vegetable garden offers an opportunity for green-fingered residents to cultivate their own produce and state-of-the-art security ensures peace of mind.
“New Court is perfectly situated for sports and outdoor enthusiasts,” say Burger and Thomas, “with Steenberg and Westlake golf courses literally around the corner and, situated adjacent to the Table Mountain National Park, residents enjoy endless opportunities for dog walking, mountain biking or simply strolling along the equestrian track.
“The focus here is on lifestyle with a free-flow village-like environment and a central square around which the houses have been built. Each home looks out over the expansive landscaped garden with views of the mountains beyond.
“And, although most investors are scaling down, at New Court they aren’t compromising on space and forced to sell or store half of their possessions as is so often the case because the double-storey, three-bedroom units are very spacious.”
Thomas and Burger conclude that this sector of the market has emerged as a lucrative investment opportunity, with strong demand driving capital appreciation and rental yields in lifestyle estates targeting older adults.
“As the population continues to age, the market is expected to further expand in years to come, offering opportunities for developers, investors, and older adults seeking to enjoy a vibrant and fulfilling retirement lifestyle.”
