Estates have emerged as one of the fastest-growing sectors in property development, with some of the highest capital appreciation rates over the past five years.

According to agents from Seeff Property Group, estate home prices have increased at a faster rate than other property types.

Data from Lightstone reveals that estates accounted for 16% of all property transactions last year. The average price of estate homes surged by 28%, reaching R2.3 million in just five years.

In comparison, homes outside estates saw a modest 8% price increase over the same period. Notably, while only 2% of all national transactions exceed R3 million, this figure jumps to 8.5% for properties located within estates.

At least 20 estates have recorded exceptional capital growth, with increases ranging from 22% to 37% over five years.

Samuel Seeff, chairman of the Seeff Group, attributes the surge in estate demand to their enhanced security and lifestyle offerings, particularly in areas facing service delivery challenges.

Sales data for last year shows Gauteng leading with 13,997 estate transactions, followed by the Western Cape at 12,265 transactions.

Despite the slightly lower number of transactions, the Western Cape recorded the highest overall value at R34.4 billion. KwaZulu-Natal (KZN) had the highest average price at R3 million.

Some of the estates with the best price growth over five years include:

• Cape Town Metro Estates: Estates in Blouberg and Somerset West, popular with semigration buyers, have seen substantial price increases. Notably, Sunset Links and Atlantic Beach Estate now offer homes priced between R5 million and R15 million. Hout Bay and Somerset West estates, such as Erinvale Golf Estate, have also reached prices of up to R19.5 million.
• Gauteng Estates: Pretoria East, Centurion, and the Bedfordview/Edenvale areas have seen some of the highest growth, with estates like Fourways Gardens, Kyalami, Dainfern, and Eagle Canyon achieving notable price increases. These estates are also popular with tenants, with some homes achieving rental prices of R17,000 to R40,000 per month.
• KZN Estates: Umhlanga and Hillcrest estates have enjoyed strong growth, with the North Coast area seeing a rise in demand from both Gauteng and international buyers. High-end estates in KZN are now listing for up to R40 million.

In Pretoria East, luxury estates such as Mooikloof Equestrian Estate and Silver Lakes Golf Estate have seen significant price growth, with some properties selling for R5 million to R15 million.

These estates also achieve some of the highest rental rates, up to R80,000 per month.

As demand for estates continues to rise, especially in high-end areas, these properties are proving to be among the best performers in South Africa’s real estate market.