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<\/a><\/figure>\n\n\n\nSouth Africa is currently experiencing a prolonged cost-of-living crisis, which has been steadily worsening, according to Raksha Darji, a senior economist at the Competition Commission.<\/p>\n\n\n\n
Just Property CEO Paul Stevens described the current residential property market as “the great downsizing,” in which homeowners are choosing smaller, more efficient homes amid cost pressures.<\/p>\n\n\n\n
In addition, lifestyle requirements and a desire for greater control are driving many homeowners to choose smaller homes.<\/p>\n\n\n\n
“It\u2019s a two-speed market. On one side, people are choosing compact, energy-resilient living,” said Stevens.<\/p>\n\n\n\n
“On the other hand, well-capitalised buyers – including returning expatriates and younger high-earning families – are upgrading to premium freehold properties and estates where prices have stabilised.”<\/p>\n\n\n\n
Stevens said both of these movements are reshaping the market in real time.<\/p>\n\n\n\n
According to Stevens, sectional title properties now represent over 50% of new residential transactions in many of the country’s major metropolitan areas.<\/p>\n\n\n\n
Sectional title properties refer to individually owned units, such as apartments or townhouses, within a larger development or complex.<\/p>\n\n\n\n
The owner of the sectional title holds a deed for the section they own, whilst sharing joint ownership of common property such as elevators, grounds, etc., managed by the body corporate.<\/p>\n\n\n\n
The increase in demand for sectional titles is also driven by rising rates, utilities, security costs, and municipal tariffs.<\/p>\n\n\n\n
Additionally, Just Property revealed that buyers under the age of 44 account for nearly half of all purchases nationwide.<\/p>\n\n\n\n
The drivers of the demand surge have led households to choose smaller homes, as larger homes have become more difficult to maintain.<\/p>\n\n\n\n
“These buyers want homes that support the way they live now. They want efficiency, security and financial manageability, which they\u2019re finding in smaller, well-located units,” said Stevens.<\/p>\n\n\n\n
Younger families are moving back to long-established communities, helping to revitalise schools, sports clubs, and local businesses.<\/p>\n\n\n\n
Retail areas are shifting towards convenience-oriented formats that cater to compact living.<\/p>\n\n\n\n
Security estates are attracting upgraders, while smaller, well-located freehold homes are being quickly purchased by buyers seeking more space without the burden of excessive maintenance.<\/p>\n\n\n\n
Traditional suburban layouts are evolving into a mix of compact freehold homes, sectional title units, and estate living.<\/p>\n\n\n\n
<\/a><\/figure>\n\n\n\nSouth Africa is currently experiencing a prolonged cost-of-living crisis, which has been steadily worsening, according to Raksha Darji, a senior economist at the Competition Commission.<\/p>\n\n\n\n