South African golfing property market proves 'resilient' 3.0 out of 5 based on 1 votes.

Golfing estates are proving to be among the resilient segments in the South African property market. Dr Andrew Golding, chief executive of the Pam Golding Property group, explained to an audience at a recent Talking Turf summit that while the golfing sector has struggled in places like the US, in South Africa it has been performing relatively well.

"From 1990 to 2003 some 3,000 new courses were built in the United States, boosting the total number of courses nationally by 19 per cent and costing about $20 billion (£12.9 billion approximately), according to the National Golf Foundation. However, soon after that the sport began to lose its allure and since 2005 over 350 golf courses closed," he explained.

While the South African property market has had its troubles, metropolitan sites like Steenberg, De Zalze and the Atlantic Beach Estate in the Cape have been relatively "recession-proof". What's more, when comparing the property values in these estates to surrounding areas, golfing property is performing strongly.

Dr Golding claims Zimbali and Simbithi are prime examples of this. Ninety-five per cent of both estates are currently sold out, with Zimbali - the more mature of the two - achieving a 90 per cent completion rate. Both of these sites are located in the Ballito area and in 2012 alone, total market sales turnover stood at R 1.3 billion (£9.3 billion approximately). Simbithi and Zimbali ended the year at around R 800 million - two thirds of the entire Ballito market. Land prices in Simbithi also increased by 30 to 40 per cent since 2007, despite difficult economic times.

"Another excellent example of this typical golf estate ‘phenomenon’’ is Cape Town’s Steenberg Estate, which is listed as  the fifth most expensive place to live in South Africa," Dr Golding added. "There is a 540 per cent difference in the average property value between a Steenberg home and one that is just beyond its gate in the suburb of Tokai."

source: http://www.propertyshowrooms.com/south%20africa/property/news/south-african-golfing-property-market-proves-resilient_312731.html

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