In an evolving real estate landscape, South Africa's property market is witnessing an increased demand for retirement communities that blend luxury lifestyle amenities with essential care facilities.
This trend, highlighted in recent data released by Lightstone, stems from significant shifts in the senior demographic, including a burgeoning ageing population, evolving lifestyle preferences, and heightened financial independence among older adults. This trend is driven by a growing senior population, changing lifestyle preferences, and increasing financial security among older adults.
According to data, of the country's 5.45-million residential properties (excluding social housing), approximately one third is owned by over 60year olds. A quarter of these owners bought their properties after they turned 60, and just 44 000 of these properties are in formal retirement villages, which suggests they are targeted at the upper end of the market, said Lightstone.
A total of R29 billion has been spent on more than 15 000 properties at an average price of R1.9m in retirement complexes over the past five years.
While sales have mostly occurred in Gauteng, Western Cape and KwaZulu-Natal, the Western Cape has had the highest average sales prices.
Esteani Marx, head of real estate at Lightstone, said there were various reasons that contributed to the rise in demand.
"I don't think there is adequate stock. We do see an increase in stock being brought onto the market, maybe not at the required rate in terms of demand, but since 2000 there's been an uptake in the stock being brought onto the market," said Marx.
Andrew Golding, chief executive of the Pam Golding Property group, said that buyers between the ages of 50 to 64 account for an increasing percentage of sales across the residential property market nationally, rising from 21% in 2018 to 24% during the first half of the year. "This age group includes those semigrating to the Western Cape and other coastal areas as semigrants are typically older, more affluent buyers, with many looking to retire to the coast.
“Retirees and those 65 years plus have seen a slight increase from 6% to 8%, probably due to downsizing due to life stage, relocating to be closer to family, or purchasing within a retirement development – particularly those which have high appeal due to lifestyle and security factors, including assisted living if required in the future,” said Golding.
Tiffiny Hancock, sales manager of Harcourts Ambers in Howick in the Midlands that focuses on the retirement villages in the area, said there was definitely a huge demand.
"There is a constant flow of clients coming to us. The retirement security estates with the leisure amenities and care attached to them is in huge demand. A lot of people are looking for care centres or for care to be available. They are also looking for active lifestyles and want the swimming pool, bowling greens, and gym. In a lot of the villages the wine tasting clubs, tennis clubs are popular.
"We find a lot of the younger generation wanting to get into these places younger to be able to enjoy the facilities than leaving it too late," said Hancock.
Carol Reynolds, area principal for Pam Golding Properties in north Durban, said since Covid they have definitely seen a trend where people from inland were moving to the coast, especially at retirement age.
"Developers have seen the need and are developing leisure estates with some form of frail care facility. The coast is attractive, towns are popular because of the low cost of living and good climate. People are buying in these estates while they can still make decisions for themselves. They want to move into an estate to live rather than a retirement home to die," said Reynolds.
Some of the newer estates catering for the over 50s on the KZN north coast are Shoreline Sibaya and Capri Village Salta Sibaya.
Shoreline Sibaya offers sectional title ownership to modern, contemporary apartments, specifically designed for active and independent over 50s. The amenities include an onsite care centre, restaurant, coffee shop, gym, heated swimming pool, function room, bar, library and communal braai area.
Capri Village at Salta Sibaya is a residential development which is aimed at people over the age of 50. Residents have access to their own facilities including a clubhouse, bowling green, bocce ball, indoor pool, library, bar and entertainment areas, dining room, and cocktail lounge and patio. Capri Village also offers nursing care.
