Millennials will expect work, live, play options in both urban and suburban environments, requiring a new hybrid form of a suburb which offers the amenities of an urban node but with elements of suburban life.
This is according to Pam Golding, which noted that while nominal house prices continue to rise, the resurgence in consumer inflation is gradually eroding the recent recovery in real (inflation adjusted) house prices.
“Despite a slight slowing of sales volumes across the market in total, growth in house prices continues to outstrip inflation, reflecting the continued strong demand for homes – to rent and to buy, which exceeds supply, especially in the major metropolitan areas of the country,” it said.
According to Lightstone statistics, for the 10-months from January to October 2015, a total of 151,371 homes changed hands, compared with 175,619 units for the 12 months in 2014.
For the year to date, Lightstone statistics also reveal that 79% of sales comprised homes under R3 million and over half (53%) under R1.5 million.
The average price selling price was R918 000.
First time buyers are adding impetus to the market, with ooba recently reporting that 54 percent of applications for home loans comprise first-time buyers, up from 38.5% of the market in mid-2007.
New hybrid form of suburb
“International trends suggest that millennials will expect work, live, play options in both urban and suburban environments, requiring a new hybrid form of a suburb which offers the amenities of an urban node but with elements of suburban life,” the property firm said.
For example an office park, retail opportunities and easy access to public transport while enjoying of a suburban lifestyle.
With many local authorities unable to adequately deliver services and again in an attempt to avoid growing congestion, Pam Golding said that homeowners are increasingly opting for mixed-use developments which offer medical, education, retail and residential in a single, secure environment.
“Along with this, and following a global trend, factors of affordability particularly from a younger generation are expected to prompt local investors to begin focusing on developing properties intended for rental rather than sale.
“The imperative towards green, environmentally sustainable homes will gather momentum with increasingly expensive electricity and the impact of water shortages reinforcing this trend,” it said.