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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.<\/p>\n
The millennial buyer’s market is generally below R1.5 million, with most buyers under 35.<\/p>\n
Although affordability is important, graduates with professional jobs can spend up to R2.5 million, particularly married couples.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Roughly 70% of transactions in the area last year were below R1.5 million.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Bloemfontein’s affordability makes it attractive for young buyers, who total 32% of sales in the last year.<\/p>\n
Seeff said that millennial buyers prioritise location, energy efficiency, home office space, low maintenance, technology, and outdoor space.<\/p>\n
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.<\/p>\n