Property hotspots for young buyers in South Africa
Seeff Property Group agents say millennials are incredibly active in the South African property market, with data from Lightstone showing that millennials make up between 30% and 42% of all property purchases – particularly in urban areas.
The millennial buyer’s market is generally below R1.5 million, with most buyers under 35.
Although affordability is important, graduates with professional jobs can spend up to R2.5 million, particularly married couples.
Lightstone data said that the largest number of millennial buyers are in Gauteng, which can still offer affordability, with areas like Randburg – where nearly 40% of buyers are below 35 – showing excellent value.
Popular areas include Weltevredenpark, Wilgeheuwel and Allens Nek, where sectional titles start from R650,000 and some homes from about R1.2 million, according to Seeff’s Duane Butler.
Midrand is also incredibly popular with millennial buyers, with young buyers making up a large portion of the market, as well as families given the childcare facilities and schools in the area, Seeff’s Charles Vining said.
Roughly 70% of transactions in the area last year were below R1.5 million.
Vining added that 38% of buyers in Sandton are in the millennial age bracket and will spend a little more for convenience and status. On the other end of the scale, Soweto is also a popular destination, with young buyers making up 34% of total buyers.
Seeff’s Tiaan Pretorius added that 35% of sales activity in Centurion is with young buyers, with several affordable areas incredibly popular, including Doringkloof, The Reeds and Highveld.
Young buyers also make up 40% of all buyers in Ekurhuleni, where areas including Brakpan (35%), Benoni (37%), Boksburg (39%) and Springs (35%) are popular with the growing middle class.
Cape Town may be more expensive, but millennials still make up 39% of all buyers. Ross Levin from Seeff said that an apartment in the Cape Town CBD area can fetch between R1.2 million and R1.5 million.
Other popular areas in the city include Brackenfell, Kraaifontein and Blouberg, with the last seeing an influx of semigration buyers from inland provinces due to the beach and surfing lifestyle.
In the Durban area, only 29% are below 35 years. Young buyers in Richards Bay total roughly 32% of all sales, and Seeff’s Elaine Chetty said that the town is popular with upwardly mobile buyers.
Despite the relative affordability, young buyers in East London only make up 26% of all buyers. Gqeberha’s 31% is slightly closer to the average.
Bloemfontein’s affordability makes it attractive for young buyers, who total 32% of sales in the last year.
Seeff said that millennial buyers prioritise location, energy efficiency, home office space, low maintenance, technology, and outdoor space.
Chairman of the Seeff Property Group, Samuel Seeff, said that millennials see property as a good investment, which was evident during the major covid-related boom in sales when interest rates were low.
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