Two generations are redefining SA's property market

• Gen Z and Millennials are entering through co-buying, 100% bonds and sectional title living.
• Buyers over 60 now spend an average R2.4 million on secure lifestyle homes.
• Standard Bank, BetterBond and Seeff all point to stronger affordability and rising multi-generational demand.

South Africa's residential property market is no longer being shaped by a single generation. Instead, it is being driven by two powerful demographic forces pulling from opposite ends of the age spectrum.

Young buyers are finding innovative ways to overcome affordability barriers through co-buying, digital finance and higher loan-to-value lending, while mature homeowners are leveraging accumulated wealth to upgrade into secure lifestyle estates rather than exiting the market.

The result is a property market with demand strengthening simultaneously at the entry level and premium lifestyle segment, creating opportunities for investors, developers and estate agents alike.

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"These two waves, with Gen Z entering the market through creative financing, co-buying and tech-driven solutions, and Baby Boomers downsizing, rightsizing or semigrating into secure lifestyle estates, may have very different financial profiles and housing needs. Yet both are having an increasingly visible impact on the property market." Bradd Bendall, National Head of Sales at BetterBond

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A market finding its momentum

‍After two challenging years of elevated interest rates and cautious consumer sentiment, South Africa's housing market is showing renewed resilience.

BetterBond's latest July Property Brief reveals that home loan application volumes are 5.7% higher than two years ago, supported by improving affordability, moderating inflation and a more stable interest-rate environment. This recovery is not being driven by one buyer profile alone, it is increasingly broad-based across generations.

Standard Bank has also reported that the average purchase price among younger buyers has risen by 5.5% over the past two years, reflecting stronger earnings, improved affordability and greater confidence among first-time purchasers.

Together, the data suggests a market that is becoming more accessible at the bottom while remaining remarkably resilient at the top.

The silver buyers driving premium demand

‍Rather than retreating from homeownership, South Africa's over-60 buyers are becoming one of the market's most influential purchasing groups.

According to BetterBond's July data, buyers aged over 60 have increased their average purchase price by 6.48% year-on-year, with the average home now costing approximately R2.4 million.

This is not traditional downsizing in the sense of reducing wealth exposure. Instead, many are exchanging large family homes for luxury apartments, retirement villages and secure lifestyle estates offering lock-up-and-go convenience, healthcare access, community living and enhanced security.

These buyers are also contributing to growing demand in coastal and semigration destinations, where lifestyle has become as important as location.

Young buyers are changing the rules

‍At the opposite end of the market, younger South Africans are refusing to wait for the perfect financial circumstances before becoming homeowners.

BetterBond's data shows buyers under 30 are spending 8.3% more on homes than a year ago, with average purchase prices exceeding R1.3 million. Buyers aged between 31 and 40 have seen an even stronger 8.4% increase, purchasing homes averaging just over R1.6 million.

Importantly, BetterBond places the average first-time buyer at 37 years old, firmly within the Millennial generation. These purchasers are favouring:

• Sectional title apartments
• Mixed-use precinct developments
• Security estates
• Buy-to-let starter investments

Rather than following previous generations' path of buying freestanding homes first, many are prioritising affordability, location and long-term investment potential.

Creative finance is opening doors

‍The biggest difference between today's younger buyers and previous generations is how they are financing property ownership.

Bendall says many first-time buyers are successfully entering the market by combining several affordability strategies:

• Co-applying for bonds with siblings, partners or friends
• Purchasing below the R1.21 million transfer-duty threshold
• Buying into new developments with no transfer costs
• Securing 100% and in some cases above-100%, home loans
• Using online bond pre-approval and virtual property viewing technology

These innovations are reducing one of the largest barriers to ownership: the upfront cash required to buy a property.

Under-35s are becoming a major force‍

The demographic shift is equally evident across estate agency data.According to Seeff Property Group, buyers under the age of 35 now account for around 30% of all residential property purchases nationally.

Samuel Seeff, chairman of Seeff Property Group, says younger middle-class buyers are increasingly drawn to properties that offer both lifestyle and investment value.

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"Today's younger buyers are highly value-conscious. They are prioritising secure sectional title homes, lifestyle estates and investment properties that can generate rental income while building long-term wealth."

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This growing appetite is particularly evident in Cape Town, Pretoria and Durban, where mixed-use precincts and security estates continue attracting younger professionals.

Standard Bank sees affordability improving

‍Standard Bank's housing data reinforces the improving affordability picture. The bank notes that younger buyers are paying 5.5% more for homes than two years ago, largely because stronger household incomes and improved lending conditions have expanded purchasing power.

Combined with easing inflation and a stable prime lending rate, banks are becoming increasingly willing to support qualifying first-time buyers through higher loan-to-value lending, making ownership possible for buyers who previously struggled to save substantial deposits.

‍Investor Snapshot‍

‍Lifestyle estates, luxury downsizing and semigration

‍For investors, the implication is clear: demand is strengthening at both ends of the market. Entry-level rental apartments remain supported by younger professionals, while premium lifestyle estates continue benefiting from affluent mature buyers seeking security and convenience.

A market with no single buyer

‍South Africa's housing market is increasingly defined by adaptability rather than age. Younger buyers are proving that creative financing, digital tools and alternative ownership models can unlock the property ladder, while older buyers are demonstrating that downsizing does not mean reducing investment value. Instead, it often means reallocating wealth into higher-quality lifestyle assets.

As Bradd Bendall concludes, there is no longer a single path to property ownership. Whether buyers are entering the market for the first time or reshaping their housing choices later in life, both generations are creating stronger currents of demand and together they are redefining the future of South African residential property.

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