SA’s millennials target properties under R1.5m
MILLENNIALS now comprise up to 42% of all property purchasers, especially in the main urban areas, according to data from Lightstone.
Lightstone, a company that provides information, valuations and market intelligence on properties across South Africa released data showing while Cape Town was more expensive, millennials were investing, making up over a third of all sales over the last year.
Seeff Property Group estate agent Ross Levin said the millennial buyer’s market was predominantly below R1.5million and they usually fell in the under-35-year age bracket.
Levin, Seeff’s Atlantic Seaboard licensee said: “You can even find the odd apartment in the sought-after CBD area for between R1.2m and R1.5m.”
He said deeds office data showed some 39% of sales over the last year in the Cape Town CBD were to millennials.
He said other popular choices in Cape Town included Northern Suburbs suburbs such as Brackenfell and Kraaifontein where there were plenty of sectional title properties below R1.5m.
Levin was speaking ahead of Thursday’s release of the Statistics SA residential property price index (RPPI) for December 2022.
The RPPI showed annual national residential property price inflation was 5.3% in December 2022, down from 5.4% in November 2022.
Stats SA economic statistics deputy director-general Joe de Beer said the main contributors to the 5.3% annual national inflation rate were Western Cape and Gauteng.
Western Cape increased by 8% year-on-year, and contributed 2.3 percentage points, while Gauteng increased by 2.6% year-on-year, and contributed 1.2 percentage points.
StatsSA said that the RPPI for all metropolitan areas increased by 3.8% between December 2021 and December 2022.
Harcourts South Africa chief
executive Richard Gray said with rising interest rates, load shedding, pending national elections in 2024 and rising municipal rates, the decision about whether to buy or rent was becoming increasingly complex.
“Political uncertainty can lead to fluctuations in the property market, particularly in the lead up to an election.
“However, the long-term fundamentals of the property market remain strong, and it’s important not to make any rash decisions based on short-term fluctuations,” Gray said.