Lightstone has published new data that takes a look at what first-time buyers are doing in the current residential market. According to the data, novice buyers are entering the property market in the highest numbers in the R700 000 to R1.5-million valuation bands.
Speaking to BusinessTech, Lightstone’s Head of Sales, Hayley Ivins Downs says that there may be many reasons behind the trend, and these include the correction of housing prices, and younger people are committing to owning homes after saving up for longer than previous groups have.
Another key factor is that parents are supporting their children and helping them to pay for their first homes, and formative salary levels are also growing quicker than inflation.
“Many buyers are opting away from RDP developments in or near townships because they want to be closer to work and travel less,” she said.
The highest number of first-time buyers are doing so in Cape Town, and most fall into the R1.5-million to R3-million band, while most first-time buyers in Durban, Pretoria and Johannesburg fall into the R700 000 – R1-million band.
“While the data reinforces the historical relative premium on property in Cape Town, it clearly demonstrates how Pretoria outscored the other major centres when it comes to numbers of first-time buyers – and by some distance,” Downs said.
In Cape Town, the most popular suburbs for purchasing a first home include:
– Sea Point
Just over a decade ago, in 2010, Belhar was the most popular suburb among first-time buyers. Since then, Delft and Standfontein Village have fallen out of the running, while Ottery and Langa have joined.
First-time buyers, however, have dropped by 5% over the past decade, as 2020’s figures tally 2195 new buyers, while in 2010, there were 4992.