eBusiness Weekly
South Africa has a rapidly evolving market, presenting a host of new opportunities.
Shifts in demographics and lifestyle demands for new and different housing have diversified South Africa’s property landscape.
Lew Geffen Sotheby’s International Realty CEO Yael Geffen said the real estate market is no longer frozen in conventionally, with many new types of properties on the market.
“In recent years, we’ve outgrown the ‘one-size-fits-all’ model and the South African housing market’s evolution is now being steered by two distinct influences — lifestyle changes and broader buyer demographics, Geffen said.
She added that the rapid development of the residential property landscape has been crucial to more equitable property ownership.
“Not that long ago, buyers’ choices were limited to apartments, suburban houses or townhouse developments that all looked the same.”
“Nowadays, not only are clusters and estates of all sizes in the mix but there are also micro apartments, low-maintenance security developments, smart homes and even lifestyle farms on offer.”
She added that choice, migration, and a rising number of buyers underpin current market shifts.
Moreover, female buyers are having a major impact on the market, owning nearly 60 percent of South Africa’s residential stock — on their own or as joint title-holders.
The number of women-only property purchases is also growing, with more single women entering the real estate market.
Additionally, close to 130 000 properties were sold to first-time buyers in 2022, totalling over R90 billion. This is encouraging for a country where land ownership is historically important.
Moreover, the perceived improved quality of life in the Western Cape is leading to nationwide semigration, with semigration into the province beating both Gauteng and KZN combined last year.
Despite Johannesburg losing qualified buyer semigrants to the Western Cape, investors from other African nations are filling the gap as they try to gain a foothold in the nation’s economic powerhouse. — Businesstech
