SA luxury estates like Steyn City, Val de Vie are booming

Steyn City, a sprawling private estate near Johannesburg, offers luxury living amid nature with amenities like an Olympic equestrian arena, golf course, and man-made lagoon. Home to affluent South Africans and internationals, the estate reflects the wealth gap and challenges posed by crime and infrastructure decline in South Africa. With homes priced up to $2.7 million, Steyn City highlights a global trend of gated communities catering to the ultra-rich seeking safety and self-sufficiency..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here..By Prinesha Naidoo ___STEADY_PAYWALL___.Springbok and impala wander through the parkland at Steyn City, a private residential estate that's four times the size of Monaco. Nearby, a rider cools down her horse after a morning out at an Olympic-sized equestrian arena, while golfers tee off on a Jack Nicklaus-designed course..The enclave on the outskirts of Johannesburg — replete with a man-made lagoon, biking trails, restaurants and a school, and where homes are sold for as much as 50 million rand ($2.7 million) — illustrates the efforts of the wealthy to shield themselves from rampant crime and deteriorating infrastructure in the world's most unequal country. .Despite a 20% decline in South Africa's millionaire population over the past decade, it remains a hub for the continent's high-net-worth individuals, according to the Henley & Partners' Africa Wealth Report. Meanwhile, government data show that roughly half of the 63-million-strong population lives in poverty, relying on at least one monthly welfare payout. .Housing stock in estates — of varying degrees of luxury — is the fastest-growing segment in the country's residential property market, according to Lightstone. There are almost 490,000 homes in such developments, a fourfold increase since 2003, the real estate data firm said. .Estate living emerged around three decades ago when developers financed golf courses by adding properties within secure perimeters, creating a sense of community based on shared values and lifestyles, said Andrew Golding, chief executive of Pam Golding Property Group. .Read more: How the world sees us: Steyn City "highlights SA's divided urban society".Crime, which, according to World Bank estimates, erodes $40 billion — 10% of South Africa's GDP — annually, more than a decade of power cuts, and water outages have since spurred these developments, which typically include backup solutions..It's "a symptom of a failed society," said Bronwyn Williams, a partner at Flux Trends. While it is natural for people to prioritize their families' safety when "the government is not fulfilling its mandate to look after your safety and security," buying their way out of problems is a moral gray area, she said..To be sure, this phenomenon is not unique to South Africa. Exclusive communities catering to ultra-rich have mushroomed worldwide, from the US to Brazil and the United Arab Emirates. New World Wealth predicts that by 2050, over half of the world's centi-millionaire population will reside in or own second homes in lifestyle estates..Steyn City boasts a man-made lagoon and offers a range of housing options from apartments to mansions and plots of land. Photographer: Cebisile Mbonani/Bloomberg.Rampant crime and poor service delivery in South Africa drive demand for homes in gated communities. Photographer: Cebisile Mbonani/Bloomberg.For Douw Steyn, whose 250-million-rand home is perched on a ridge overlooking the estate bearing his name, the development provided a way to honor his heritage. "While many successful South African businesspeople who built their fortunes here chose to disinvest in the economy, I saw things differently," the founder of local insurer Auto & General and BGL Group, one of the biggest consumer insurance firms in the UK, said in an emailed response to questions. .Read more: Authenticity personified – VIP Bodyguard Rory Steyn on Nelson Mandela, the man he protected for five years..Nelson Mandela, the anti-apartheid activist who became the country's first Black president, broke ground at the site in 2007. He stayed at the tycoon's former Johannesburg house when freed after 27 years in prison, and worked on his autobiography as well as the nation's first democratic constitution there..Steyn City's developers say they've spent almost 9 billion rand, including contributions to municipal infrastructure, on the property and have committed 2.7 billion rand for further works over the next six to seven years. .Steyn City's Jack Nicklaus-designed golf course has hosted at least one international tournament. Photographer: Cebisile Mbonani/Bloomberg.Steyn City's leisure facilities – including stables, an equestrian arena and parkland – draw affluent South African and foreign residents. Photographer: Cebisile Mbonani/Bloomberg.It's not uncommon for estate developers to upgrade and build infrastructure that also serves surrounding communities. .Val de Vie, the only other African estate ranked among the top 10 lifestyle estates globally by New World Wealth, is located on a site of an old quarry, less than an hour away from the tourist hotspot Cape Town. Its developers spent more than 25 billion rand, including to build power, water and road infrastructure, according to Ryk Neethling, its marketing and brand director..Since the pandemic boosted remote work's popularity, luxury compounds have drawn more affluent foreign residents..Read more: Steyn's tenacity reaffirms nothing is more powerful than the truth.Approximately 40% of Val de Vie's buyers are foreigners — two-thirds of whom are returning South African expatriates, with the rest mostly Europeans — including venture capitalists, traders and finance and IT professionals, Neethling, who's also an Olympic swimming gold medalist, said. Luxury homes on the estate sell for as much as $3,860 per square meter, compared with $5,600 per square meter for prime property in Cape Town. .Steven Louw Photographer: Cebisile Mbonani/Bloomberg.Steyn City's international population comprises roughly 10% of its residents, mostly Africans working in industries like mining, logistics and financial services. These residents seek to travel easily and strike deals across the continent, Steven Louw, its chief executive officer, said. Land in the estate sells for as much as $315 per square meter..In housing developments like estates "the costs per square meter are amortized over a greater number of units" allowing for more amenities than typical freehold or free-standing properties, said Golding..Art and sculptures are dotted throughout Steyn City – a private estate that's four times the size of Monaco. Photographer: Cebisile Mbonani/Bloomberg.Competition in the luxury market has prompted estates to adopt cradle-to-grave strategies, introducing amenities like kindergartens, medical and senior living facilities and office parks, minimizing the need for residents to leave their enclaves. .As buyers grow accustomed to these offerings, they are likely to demand similar features in mid-market developments, said Siphamandla Mkhwanazi, a senior economist at FirstRand Ltd.'s FNB. "What used to be luxury is going to become more average.".Read also:.Rory Steyn's mission to secure a lasting legacy for the Comrades MarathonSecurity guru Rory Steyn on Olympics; getting F1 back to Kyalami and protecting against assassinsEx-Mandela guard Rory Steyn questions Trump's Secret Service security after sniper attack.© 2024 Bloomberg L.P.

SA luxury estates like Steyn City, Val de Vie are booming

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