South Africa’s young middle class is purchasing fewer homes compared to six years ago, with property purchases by individuals aged 26 to 35 dropping from 92,558 in 2018 to 69,577 in 2023—a 25% decline. This demographic accounted for 27% of real estate sales in 2023, despite overall fewer transactions.
However, there has been a notable shift in spending habits. In 2023, 36% of this age group spent between R1 million and R3 million on properties, up from 29% in 2018. Popular areas include Impumelelo in Gauteng’s Sedibeng Municipality, Sky City in Ekurhuleni, and Belhar in Cape Town. These locations are attractive due to their affordability and good economic prospects.
According to the Seeff Property Group, Gauteng, including Johannesburg, remains the most affordable region in South Africa, with new homebuyers typically paying between R700,000 to R800,000, while luxury homes average around R4 million. Despite Gauteng’s appeal, there’s a trend of people moving to coastal provinces, which are perceived to be better governed. In the Western Cape, popular suburbs include Belhar, Sandown, Atlantic Hills, Sitari in Cape Town, and Somerset West.
This evolving real estate landscape highlights changes in both the economic behavior and preferences of South Africa’s younger middle class.
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