The call of the bush – why South African wildlife estates are attracting local and foreign investors

After two years of record-low interest rates, the Reserve Bank in South Africa has gradually raised interest rates to assist curb inflationary pressures. BetterBond CEO Carl Coetzee says, “Our banking partners and economists predict that we are approaching the top of this current rate-hiking cycle and we can study forward to rates starting to stabilise towards the finish of this year and into 2024, holding steady or perhaps even starting to advance down slightly.”

While this has impacted affordability, buyer activity in certain property sectors remains robust.

Urban Soup’s Ray Harli observed that “there are some positive signs that suggest a more optimistic outlook. For one thing, there has been an increased interest in real estate investment from both domestic and international buyers… I believe that the South African property market has the potential for growth and prosperity in 2023. Investors who approach the market with caution and a long-term perspective could see promising returns on their investments in the years to come…

“One significant factor that I believe will drive the property market in 2023 is the growing trend of remote work… As more and more people realise that they can work effectively from anywhere, there is likely to be increased demand for properties that offer flexible working arrangements.”

“High-net-worth individuals are increasingly making real estate investments based on lifestyle choices rather than location dictations because they know that as long as there’s a digital connection, they’re in business,” said High Street Auctions Founding Partner and Lead Auctioneer Joff van Reenen, adding that lifestyle properties in the bush and near the coast gain been the biggest draw cards in South Africa in recent years, among local and international investors alike.

According to Lightstone’s Residential Property Indices Cease of February 2023, national year-on-year house price inflation was then at 2.31%, having decreased consistently since early 2021. Interestingly, annual property inflation increased in Limpopo (to 8.55%) and Mpumalanga (to 6.74%), where many of the country’s wildlife reserves are located.

Van Reenen noted that “auction buyers in this segment are pretty evenly split between foreign and local purchasers” but that foreign buyers are “facing stiff competition from the local semigration market”.

According to the “African Wealth Report” for 2022, 48% of South African high net-worth individuals either live in or maintain second homes on lifestyle estates. This percentage has been rising steadily over the past decade – in 2011 it stood at around 30%. The report, authored by global intelligence firm Novel World Wealth (NWW) and Henley & Partners, noted the following trends:

• Affluent buyers in SA are increasingly moving towards estates that gain apartments.
• There is a general movement away from traditional golf estates and towards wildlife and parkland estates.

In their “Upcoming eco-friendly trends among the world’s wealthy in 2023” NWW notes “the rise of ecologically friendly estates as the modern second homes of choice for the world’s super-wealthy – lifestyle estates with natural indigenous wilderness areas, and diverse flora and fauna. Notable examples include: Jacks Point in Novel Zealand, the Yellowstone Club in USA and Predator Ridge in Canada, as well as a large number of eco-estates in South Africa.”

According to NWW analyst Andrew Amoils: “Estate living is becoming increasingly popular worldwide, especially among affluent people that travel a lot and believe homes in several countries around the world. This is mainly due to the safety and environmental benefits of estates. Ecologically friendly lifestyle estates with natural indigenous wilderness areas are becoming particularly popular.” Amolis added that these estates are especially sought-after for their abundant wildlife and birdlife in a natural setting of indigenous bushveld and forest.

“They are normally situated away from the huge cities. And most of them offer outdoor activities such as game viewing, forest walks, fishing, bird watching, hiking and mountain biking.” Other benefits in a South African context include security, higher property values and, for locals, the attraction of owning a Rand hedge.

Hold the latest estate to be built on Kruger’s Crocodile River boundary. Shawu’s Hills Wildlife Estate offers an extraordinary lifestyle experience in “the bush” in full title homes, fractional ownership lodges, and timeshare units – all of which can be rented out to international visitors – if the rand gets weaker, demand from international visitors increases.

And, of course, as Paul Stevens, CEO of Honest Property, points out, “Property in a current development can be purchased with no transfer costs, offering buyers the lowest cost of acquisition. There is a remarkable opportunity to save thousands of rands when buying into high-quality developments.”

Tom Gelletich, a Pam Golding Properties agent in Hoedspruit, specialises in the sale of Huge Five farms and lodges. He told AltVest Capital last year that properties in the greater Kruger that boast Gigantic Five animals indulge in far greater value than other reserves… if investors could afford to buy a large farm with qualified traverse rights they would, but from a holiday home point of view being able to dilute the costs of ownership makes sense; it really depends on your motivation and budget.”

At Shawu’s Hills, for example, the range of ownership options includes:

• Fractional ownership lodges
• 75 – 100 Timeshare units
• 93 Full title stands.

Shawu’s Hills Wildlife Estate is being developed by Bluegrass Property Developers who are passionate about development and sharing what the southern fraction of the Kruger National Park has to offer. They surround themselves with specialists and their mission is to provide sustainable and propitious projects.
For more information, contact Lindi Le Grange: lindi@bluegrass1028.co.za or call 074 444 0178. Visit our Instagram at @Shawushillsestate or Facebook @shawus hills wildlife.

CLICK HERE to submit your press release to MyPR.co.za for free.

Press Release Views since 1 July 2022: 9

Read More at the Source