Property data specialists, Lightstone, notes that on average more than 90,000 South Africans buy their first homes each year – but where in particular are they buying?
According to Lightstone, 2016 saw a big drop in first time buyers in SA, at around 72,771, down from 105,712 who entered the property market for the first time in 2015.
Most of the purchases consisted of people between the ages of 26 and 40, there were however, 913 people that bought houses over the age of 70, and 624 under the
age of 20.
Lightstone’s property trends analysis also looked at where first-time property buyers are investing in their first homes. “More than anything else, affordability and ease of access to work, shops, schools and services are the primary drivers behind where new market entrants decide to buy.”
A close investigation of first-time home buyer trends over the past two years shows that the suburbs most in demand for this market are in Gauteng and the Western Cape, close to the respective economic hubs of Tshwane, Johannesburg and Cape Town.
Lightstone pointed out that suburbs chosen by first-time home owners are not the same as those that second-time (and subsequent) buyers decide on. “In our research, we have found that first-time owners have a unique set of criteria that drive their decision-
making process,” the research group said.
First-time buyers tend to be younger, are in the beginning stages but have settled down
in their chosen career, and have a stronger need for a lock-up and go style home.
The top 10 suburbs where first time buyers are purchasing homes fall within Gauteng and Western Cape. Five of these suburbs in Gauteng offer a selection of low- to mid-value properties and are mostly newly built suburbs.
These are Protea Glen, Soshanguve KK, Soshanguve NN, Delft and Pelikan Park.
Three of the top 10 suburbs, Equestria, Greenstone Hill and Paulshof consist primarily of high-value sectional schemes and estates type of properties.
The remaining two suburb, Parklands and Weltevreden Park are older and have been established for more than 15 years, offering mostly freehold type properties, Lightstone said.
On a national level, most first-time buyers are aged between 25 and 35, which is somewhat younger than the average buyer.
Data used in this report is for the period from the start of 2012 to the end of October 2016.