Motheo Khoeripe talks to Hayley Ivins-Downs, managing executive of real estate at Lightstone Property, about what the growing gap between high- and low-priced homes, declining transaction volumes, and a sharp decline in young buyers mean for affordability, long-term housing demand and South Africa's growing generational wealth divide.
Listen to the interview in the audio player below the article.
South Africa's property market is showing signs of a deep structural shift, with fewer young buyers entering the market, price differentials widening, and declining transaction volumes raising concerns about long-term growth.
Recent figures show a clear decline in the participation of young buyers aged 18 to 35.
This reflects the growing affordability gap, where rising property prices and high interest rates are making it harder for young South Africans to enter the housing market.
Additionally, total transaction volume is declining. Lower property sales suggest that the market is slowing down, buyers have become more cautious and sellers are expecting higher prices.
Speaking to Motheo Khoripe on The Money Show, Hayley Ivins-Downs, managing executive of real estate at Lightstone Property, says the data points to increasing pressure on affordability, particularly for first-time buyers.
She says higher deposit requirements, rising costs of living and slower income growth mean many people are delaying buying a home or opting to rent for longer periods.
“…we see a sharp decline in home ownership among those 18-35, and there aren't many factors that can contribute to that. House prices are rising faster than our wages, so kind of house price inflation. You need larger deposit requirements, have higher student debt, banks generally have tighter mortgage rules.”
– Hayley Ivins-Downs, Real Estate – Managing Executive of Lightstone Property
“…Because people are buying homes at older ages, rentals are going on longer. People want to be renting longer. It's a better opportunity for them from an affordability standpoint. The rental market is growing by age 38, 39.”
– Hayley Ivins-Downs, Real Estate – Managing Executive of Lightstone Property
“Anything under R1.2m, you essentially don't pay transfer fees, which is obviously a big factor in terms of buying your first property. That's why we see most of the homeownership activity happening.”
– Hayley Ivins-Downs, Real Estate – Managing Executive of Lightstone Property