South Africans opting for smaller, smarter homes

South Africans interested in purchasing property in Moot and other areas are revealed to have changed the way they analyse the real estate game. According to Rudi Botha, CEO of BetterBond, many potential buyers have become extremely cautious due to labouring under previously acquired debt, but this isn’t stopping people from buying homes.

“SA consumers are much more conservative spenders than they used to be and really careful now about getting in over their heads. Consequently, while the banks are keen to lend to homebuyers and our bond approval rate is at 80%, the highest level since the 2008/ 09 financial crash, the latest statistics from Absa show that the total of outstanding household mortgage balances is currently growing more slowly than it did last year. The year-on-year growth rate is down from 3.6% in November 2017 to 3,1% currently.”

These figures are backed up by Private Property’s own data, which showed that more than 78% of the bonds granted over the past 12 months have been for less than R1,5m, and that 60% were actually for less than R1m. Perhaps even more important than the stable rate of successful bond applications is the new purchasing behaviour from a country of clearly savvy property purchasers. Not only are new houses being built smaller, and therefore more affordable, but they’re also increasingly tech proficient, easily adapting new forms of maintenance and security technology.

SA home buyers now seek a smaller space which can be monitored remotely by smartphone-controlled recording cameras and electrical appliances, which can be operated from their phones, not only for convenience but also to scare criminals away from a distance. Smaller homes closer to the CBD are highly prized, which is a direct result of intense traffic congestion especially prevalent in Cape Town and Johannesburg. Recent extreme hikes of the cost of fuel are certainly an additional consideration.