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The Golf Estate Grass is Greener

The Golf Estate Grass is Greener

Capital appreciation, lifestyle and location are some just of the reasons why buyers continue to buy into golf estates – over and above the golf, of course…

Gentlemen only, ladies forbidden. While it’s only a myth that these four words are an acronym for the word ‘golf’, one has to ask who else and for what other reasons South Africans –and foreigners –continue to buy into coveted golf estates. Sure, if golfing is your thing then having a championship-designed course on your doorstep makes perfect sense. But what of those who invest in the country’s many golf estates for reasons other than the golf? What wood do they see from the trees? And why do they choose to pay the full levies if they never tee off?

We searched far and wide for a comprehensive selection of some of the country’s most popular golf estates, and, while only a handful would give us actual breakdowns of their levy structures, many did provide compelling reasons for why home buyers continue to fork out their levy payments, over and above municipal fees, bond repayments and insurance, for the benefits of living it up on the green, green grass of a golf estate.

 

St Francis Links

‘Located in St Francis Bay, about two kilometres from the beach, the estate boasts an 18-hole golf course (ranked number eight in SA), plus an 18-hole par-three course (using the same greens), driving range, clubhouse, restaurant, bar, 200-seater conference room, halfway house restaurant, spa, indoor/outdoor pool, wedding venue, gym, hotel site, mountain-bike/running trails, sand dunes, fynbos and excellent security,’ says Richard Arderne, Pam Golding Properties area principal in St Francis Bay. Within two kilometres, residents can access squash and tennis courts, beaches (offering world-class surfing, fishing and a private harbour), river (navigable for 14 kilometres), shops and restaurants. Nearby schools include St Francis College, which caters to learners between Grade 0 and 7. Many parents also choose to commute to Jeffreys Bay or Humansdorp for their children’s educational needs. Woodridge, between Jeffrey’s Bay and Port Elizabeth, is an excellent private school, serviced by a daily bus. Weekly boarding is also an option.

St-Francis-Links-is-set-in-one-of-South-Africas-most-picturesque-locations

St Francis Links is set in one of South Africa’s most picturesque locations, giving residents a country lifestyle, top-10-ranked golf course and homes priced below R10 million

What levies do residents pay?

R2 800 per month (including unlimited golf for the principal member and children under 21). This excludes municipal rates (which are discounted by 20%, due to the estate fulfilling many of the municipal functions). The levy includes service-availability fees (such as water, electricity, etcetera, which total about R500 per month). Rates vary from about R300 per month for an entry-level plot to about R3 000 per month for a R6 million house.

How much of the levy is assigned to the golf course?

Approximately 30%. The other 70% would be divided between security, maintenance and staff, among other expenses.

Any future developments planned for the estate?

There is a hotel site close to the clubhouse, a commercial site at the entrance, and an ‘eco estate’ at the western side of the 400 hectare estate (which will add about 150 smaller plots, not on fairways, to the 550 plots already completed).

What are the demand levels for entry into the estate?

As the estate is 100 kilometres from a major metropolis, demand has suffered along with all other similar golf estates since the peak demand about 10 years ago. Buyers are looking to pay about 50% of the original prices (for plots).

Is there buy-to-let potential and what are the possible rentals being realised?

There is good demand for weekend golfing trips.

What is the proportion of locals to foreigners buying in the estate?

About 80% of buyers are locals.

In what price bands do the homes fall?

Plots range from R150 000 at the driving range to R400 000 for a fairway plot to about R1,5 million for the best plots. House prices range from about R1 million to R10 million.

What is the average capital appreciation for the homes in the estate?

Plot prices have fallen, despite excellent management of the estate, world-class infrastructure, a top golf experience and a good financial position. This is partially due to the levy structure, which requires that all owners pay the full levy and all be full members of the golf course. Only about 65 homes of the 550 plots are built (11%) and, due to plots having fallen in price, houses have struggled to compete with the option of buying a plot and building.

 

Dainfern Golf Estate

‘Located in Dainfern, Johannesburg, this golf estate features an 18-hole golf course, clubhouse, restaurant and bar, swimming pools, tennis and squash courts, volleyball courts and a multipurpose oval for soccer, rugby or cricket use,’ says Charles Vining, Seeff’s managing director in Sandton. Dainfern College offers education on the doorstep of the estate. The college is an independent, coeducational school that caters to Grades 0 to 12. The school draws some 75% of its pupils from the nearby gated communities.

Dainfern-Golf-Estate-residents-pay-over-R3-000-a-month-in-levies

Dainfern Golf Estate residents pay over R3 000 a month in levies, but at least 32% and 34% goes to security and the estate, respectively

Like-golf-buying-or-building-in-an-estate-requires-seeing-the-wood-from-the-trees

Like golf, buying or building in an estate requires seeing the wood from the trees

What levies do residents pay in the estate?

The current levy is R2 950 and it will increase by R200 per month after the AGM, which is held in September.

What is the breakdown of the levy?

32% goes towards security, 34% estate, 15% admin, 1% personnel, 2% IT, 10% DCC subs and 6% other.

Any future developments planned for the estate?

Projects in the pipeline include the upgrading of the clubhouse, possible construction of a wellness centre, construction of an additional tennis court and an additional maintenance facility.

Is there buy-to-let potential and what are the possible rentals being realised?

There are a number of corporate rentals that vary in price, some being as high as R40 000 to R50 000 per month.

Is there foreign demand for holiday homes? 

Due to its location, many of the houses on the estate are not used purely as holiday homes.

In what price bands do the homes fall?

House prices vary between R2,5 million and R15 million.

 

De Zalze Winelands Golf Estate

‘Located in Stellenbosch on the R44, De Zalze is a secure, patrolled estate that boasts an 18-hole championship golf course, the Kleine Zalze award-winning winery, Terroir award-winning fine-dining restaurant, a clubhouse, the Kleine Zalze Lodges and the Winelands Golf Lodges, tennis courts, canoeing, and walking, cycling and running trails,’ says Pam Golding Properties area manager for Stellenbosch, Louise Varga. The Stellenbosch region boasts around 19 primary and secondary schools, including the prestigious Stellenbosch High School, Paul Roos Gymnasium and Rhenish Girls’ High. Stellenbosch University is also located minutes’ away.

‘De Zalze is a secure, patrolled estate that boasts an 18-hole championship golf course, the Kleine Zalze award-winning winery and Terroir restaurant, a clubhouse, the Kleine Zalze Lodges and the Winelands Golf Lodges, tennis courts, canoeing, walking, cycling and running trails’ – Louise Varga, Pam Golding Properties

This-house-in-De-Zalze-Stellenbosch-was-sold-by-PGP-for-R21-555-million-earlier-this-year

This house in De Zalze, Stellenbosch, was sold by PGP for R21,555 million earlier this year – at the time a record price for the estate

De-Zalze-is-a-secure-patrolled-estate-that-boasts-an-18-hole-championship-golf-course

De Zalze is a secure, patrolled estate that boasts an 18-hole championship golf course

What levies do residents pay?

R2 402 per month.

What is the breakdown of the levy?

33,65% security, 31,19% landscaping and environment, 13,35% infrastructure, 21,81% administration.

Any future developments planned for the estate?

Phase 4 is currently being planned and will consist of six erven.

Is there buy-to-let potential and what are the possible rentals being realised?

Yes. The rates for the sectional-title Winelands Golf Lodges’ per room per night (they vary according to season) are: single R1 150, double R1 350 for one-bedroom lodge; two-bedroom lodges: R1 950 per lodge; three-bedroom lodges: R2 300 per lodge; four-bedroom lodges: R2 950 per lodge. Residential homes fetch rentals of between R20 000 and R60 000 per month.

What is the proportion of locals to foreigners buying in the estate?

Foreigners comprise 6% of owners.

In what price bands do the homes fall?

Sectional-title Winelands Golf Lodges are R1,97 million to R3,225 million from the developer, while re-sales are from R2,25 million to R5,7 million. Full-title homes fetch from R6,5 million to R21 million.

What is the average capital appreciation for the homes in the estate?
Sectional Title

82m2 apartment              R2,5 million (2010)           R2,192 million (2014 resale) Full Title

Full Title

750m2 erf                            R6,75 million (2006)         R14 million (2014)

925m2 erf                            R8,75 million (2007)         R13 million (2013)

500m2 erf                            R1,6 million (2007)           R5,75 million (2013)

910m2 erf                            R1,9 million (2005)           R18 million (2014)

867m2 erf                            R2,5 million (2006)           R21,55 million (2014)

900m2 erf                            R1,75 million (2006)         R10,925 million (2013)

 

Steenberg Golf Estate

‘Located against the backslopes of Table Mountain in sought-after Tokai, Steenberg features stunning views over the Constantia Valley and vineyards, and of course mountain views,’ says Seeff agent, Mandy Kuhn. ‘Facilities include an 18-hole championship golf course, golf club, beauty salon and top restaurants.’ The 225 homes in Steenberg Golf Estate have wonderful views. The farm’s winery produces award-winning Sauvignon Blanc and other varietals, which you can savour at Bistro 1682 and its fine-dining restaurant, Catharina’s, while the spa at the five-star Steenberg Hotel is on residents’ doorstep. Reddam House is situated minutes’ away from Steenberg Golf Estate and offers a coeducational, nondenominational, independent schooling environment. The school caters to preprimary (ages 3 to 6), preparatory (Grades 1 to 7) and college (Grades 8 to 12) learners.

Rentals-at-Steenberg-Golf-Estate-start-at-R60-000

Rentals at Steenberg Golf Estate start at R60 000

dad-may-be-the-only-golfer-in-the-family,

While Dad may be the only golfer in the family, it’s important to know that great schools, amenities and an idyllic existence await the whole family

What levies do residents pay?

R5 000 per month.

What is the breakdown of the levy?

The levy is divided equally between golf estate maintenance, security and use of the clubhouse.

Any future developments planned for the estate?

It is planned to make the clubhouse and the estate more child friendly.

Is there buy-to-let potential and what are the possible rentals being realised?

Buy-to-let potential exists and rentals start from R60 000 per month and upwards.

What is the proportion of locals to foreigners buying in the estate?

90% local buyers to 10% foreign.

In what price bands do the homes fall?

Homes range from R10 million to R20 million.

What is the average capital appreciation for the homes in the estate?

The average house price is R11 million, and there has been a 38% price growth over the past five years.

 

Woodhill Golf Estate

‘Woodhill in Pretoria East features stunning scenery and dramatic natural features, as well as an 18-hole Peter Matkovich-designed championship golf course, clubhouse, driving range, and tennis and squash courts, and it is adjacent to Woodhill College – one of Pretoria’s top private schools,’ says Rosa Willers, Seeff agent in Pretoria East. Woodhill College, which caters to learners from Grades 0 to 12, is within walking distance of any part of the estate. The estate includes a five-star guesthouse, and is very close to a private hospital.

‘Woodhill Golf Estate is adjacent to Woodhill College – one of Pretoria’s top private schools’ – Rosa Willers, Seeff Pretoria East

homes-in-Woodhill-Golf-Estate-fetch-up-to-R21-million

Homes in Woodhill Golf Estate fetch up to R21 million

Woodhill-Golf-Estate-is-adjacent-to-Woodhill-College-one-of-Pretorias-top-private-schools

Woodhill Golf Estate is adjacent to Woodhill College, one of Pretoria’s top private schools

What levies do residents pay in the estate?

R1 850 per month.

What is the breakdown of the levy?

The levy includes the golf course, clubhouse and security.

Any future developments planned for the estate?

The clubhouse will soon be upgraded. A retirement village in Woodhill is also in the planning phase.

What are the demand levels for entry into the estate?

Demand is very high, due to its own private school and proximity to all the major highways.

Is there buy-to-let potential and what are the possible rentals being realised?

Rental potential is high, with 30% of the homes in Woodhill let out. Rentals range from R25 000 to R66 000 per month.

What is the proportion of locals to foreigners buying in the estate?

Only 10% are foreign buyers and 90% local.

In what price bands do the homes fall?

House prices range from R3,5 million to R12 million.

What is the average capital appreciation for the homes in Woodhill?

Prices in Woodhill have increased on average by 4% per annum over the past five years.

 

Contact Details

 

Text: David A Steynberg

Photographs: Simon Edwards; Clive Wilson; iStock; supplied

 

 

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