Homeownership trends and shopper behaviour
In this edition of the Property Newsletter Lightstone dives into the latest trends across South Africa’s property and retail landscapes. From the residential property market needing more support, despite an interest rate cut, to the rise in single homeownership with 55% of buyers now opting to purchase solo by the end of 2023. On the retail front, shopper behaviour is shifting, with data showing Mall of Africa leading in vehicle visits, while Sandton City draws the highest-spending visitors. Explore more data on these topics in this October issue.
Residential property transactions need a helping hand
While Estate Agents welcomed the recent interest rate cut, the market still needs more support. Lightstone data from 2019 to 2023 reveals that higher price bands dominate both primary and secondary bonds, while fewer secondary bonds have been issued in recent years, despite a temporary post-Covid surge. Notably, Luxury primary bonds have been rising, as well as Affordable bonds, though 2024 shows signs of a slowdown. Further help is needed to invigorate the market, especially in the Affordable and Mid Value segments.
Read MoreHomeowners prefer buying solo
Data shows a shift toward single ownership, with 55% of buyers purchasing on their own by the end of 2023. Meanwhile, trusts and other non-natural buyers dominate higher price bands, accounting for most Super Luxury transactions. Interestingly, properties purchased by non-natural buyers or jointly owned tend to have higher price points, while single ownership prevails in more Affordable segments.
Read MoreA check on mall health
Despite recovering from Covid-19 and economic challenges, South Africa’s shopping centres face shifting shopper behaviours. Lightstone’s data reveals Mall of Africa leads in vehicle visits, while Sandton City attracts the most affluent shoppers. However, dwell times and mall visits have declined, potentially reflecting a post-Covid shift towards online shopping and shorter in-person visits. Explore the data for insights into these evolving trends.
Read MoreGoing beyond the data
Are you an Estate Agent struggling to reach contactable leads, remain competitive or grow your real estate business? Lightstone has gone beyond the data to bring property professionals the solutions they need to reach their sales targets, market their real estate businesses and level up prospecting.
View hereThe latest House Price Index
National house price inflation is at 4.03%, slightly down from last month. Provincially, KwaZulu-Natal, North West, Mpumalanga, and Northern Cape saw increases, while Free State and Limpopo experienced declines. Eastern Cape, Gauteng, and Western Cape remained unchanged. Low-Value segment inflation dropped to 13.5%, while High-Value, Mid-Value, and Luxury segments held steady at 3.1%, 4.4%, and 4.2%, respectively.
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