For Gen Z homebuyers, luxury looks different

In previous generations, financial success was often defined by the size of one’s home, multiple bedrooms, a garden and even a swimming pool if you’d done really well. But as the new generation of buyers, Gen Z, enters the market, the property equation is changing.

Increasingly, younger professionals are prioritising convenience and location over excess square meterage, fuelling growing demand for compact, mixed-use urban developments.

However, this shift is being driven as much by economic realities as by changing lifestyle preferences. Rising property prices and the growth of hybrid work mean many Gen Z buyers now place greater value on walkability and proximity to business hubs than on owning a large home in suburbia.

“Gen Z buyers are still highly aspirational, but their definition of luxury has evolved,” Mark Stevens, majority shareholder of the new mixed-use development Saxon Square, explains. “For many young professionals, luxury today is less about excess space and more about convenience, security and homes that fit into the way they actually live and work.”

Gen Z wants opportunity to be around the corner

Stevens says this shift in buyer priorities has been a major driver of Gen Z sales demand at Saxon Square, particularly due to its location on Oxford Road in the heart of Rosebank.

“Rosebank has evolved into one of Johannesburg’s key commercial and financial nodes, with the offices of AngloGold Ashanti, PepsiCo, TotalEnergies and Coca-Cola SA all within walking distance of Saxon Square. Anchored by major corporates and the head office of Standard Bank, the area is increasingly appealing to young professionals looking to cut down on their commute, which is particularly relevant in a time of skyrocketing fuel prices.”

At the same time, the Rosebank Management District is investing heavily in improving urban mobility and reinforcing the suburb’s reputation as one of Johannesburg’s most walkable precincts. Alongside the Gautrain station on Oxford Road and the abundance of Gautrain bus stops throughout the node, initiatives such as upgraded pedestrian infrastructure, designated e-hailing zones and proposed cycling lanes are helping make the area safer, more connected and easier to navigate without a car.

The shift towards convenience-led luxury

For many young professionals, this combination of career accessibility and urban convenience is making Rosebank an increasingly attractive alternative to the high property prices in Cape Town’s comparable central business district.

And while Gen Z’s in Cape Town may struggle to get out of the rental trap, Rosebank offers comparatively accessible entry points into the property market, particularly through studio and one-bedroom apartments in developments like Saxon Square. These types of developments give buyers access to a premium lifestyle at a lower price point than what is traditionally associated with luxury urban living.

Today’s buyers are also increasingly conscious of the hidden costs, both financial and time-absorbing, that come with larger homes. Maintenance, security and the general upkeep associated with freestanding properties are now seen as burdens rather than status symbols, particularly for professionals balancing demanding careers and active social lives.

“We understood early on that younger buyers weren’t necessarily looking for more space -they were looking for a better way to live. Amenities such as co-working spaces, concierge services, rooftop social areas and wellness facilities allow residents to work, socialise and unwind without leaving the building. That convenience has become a major part of what modern luxury looks like for this generation.”

Rethinking the property ladder

Another trend gaining traction among Gen Z buyers is “rentvesting”: where young professionals rent in lifestyle-focused areas that suit their current needs, while purchasing investment properties in more affordable suburbs.

For these kinds of buyers, developments like Saxon Square represent the kind of convenient, amenity-rich urban living they aspire to, even if buying in Rosebank may not yet be financially realistic. Instead, they are purchasing investment properties in more affordable areas while continuing to rent in neighbourhoods that better suit their current careers and social lives – with the flexibility to eventually move into those properties later on as their needs evolve.

Stevens believes these changing buying patterns reflect a broader shift in how younger South Africans are approaching both property ownership and urban living.

“Gen Z buyers are far more intentional about how they spend their money and how they want to live,” he concludes. “They’re looking for homes that support their careers, social lives and long-term financial goals simultaneously. Developments that can offer that balance are naturally going to resonate far more strongly with this generation of buyers.”

Issued by Jess Gois