Downscaling is an accelerating trend in 2019

According to the latest FNB Property Barometer, the proportion of new flats and townhouses as a percentage of total new housing units is significantly above its longterm average of around 30 per cent.

So far this year, these units have accounted for about 60 per cent of new stock - up from 29 per cent in 2015 and 13 per cent in 2000 – as developers pull out all the stops to meet demand.

FNB economist, Siphamandla Mkhwanazi, believes this trend could be explained by the increasingly urbanising population, rising densification in the metros, and changing consumer preferences. For example, buyers tend to be more security conscious in their buying decisions than in the past.

Security is one of the main reasons people decide to downscale to townhouses and apartments in secure complexes. Freestanding properties need perimeter walls or fences, as well as beams, alarms and cameras for owners to feel secure. These are expensive to install and maintain, so it makes sense for buyers to look at smaller homes in security estates or apartment complexes that offer security measures at far lower cost.

Other considerations are also in play.

The price of fuel has increased exponentially in the past two years, and traffic congestion is on the increase in most metros. These factors have led many buyers to downsize their homes and move closer to work and schools.

Smaller homes obviously require less in the way of general maintenance, but smaller properties are not necessarily cheaper. If your objective is to be closer to family, then you may be restricted in where you can live and may have to compete with first time buyers, landlords, new families and others who are also looking for smaller properties with gardens, amenities within walking distance and good transport links.

With constantly rising fixed costs such as electricity, rates and transport, household disposable incomes are under severe pressure. The cost of general maintenance and the upkeep of gardens and swimming pools has resulted in a shift away from larger homes as buyers opt for smaller properties that are cheaper and easier to maintain.

More older homeowners are moving from larger family homes to compact lowmaintenance properties. Lifestyle estates generally offer more security along with essential healthcare and support services sought after by older residents and a range of lifestyle and sports amenities, activities and wellness facilities.