select
|

First-time home buyers drive sectional title market

Statistics released by ooba, South Africa’s largest bond originator, show that the overall demand for sectional title property has risen year-on-year (yoy) by almost 7%. First-time homebuyers (FTBs) are driving the sectional title market, with 56% of all sectional titles applications received by ooba in the last 12 months originating from this market.

33% of FTB’s are currently opting to purchase a sectional title unit as opposed to freehold property, an increase of just over 6% yoy. “This indicates that there is a steady increase in demand for sectional title property by FTBs – primarily due to affordability. Prices of sectional title units are generally cheaper than full title homes and the running costs are lower. This is appealing to those eager to get their foot onto the first rung of the property ladder,” says ooba CEO, Rhys Dyer.

The average age of the FTB buying a sectional title unit is 33 years, while the average age of this market buying a full title property is 39. The age gap in the second-time homebuyer category is much smaller, with those acquiring a sectional title property being 42 years, compared to the average age of 43 years for those buying a full title property.

SA’s national police service’s latest annual crime statistics show that there was a 5.2% increase in house robberies in the last year, with 20 281 robberies having taken place at residential premises.

“Sectional title complexes also generally offer the benefit of added security through, for example, access control, electric fencing, night and day-time guards, or improved neighbour vigilance. The advantage of living in a more secure community has also added to the increasing popularity of sectional title units amongst both FTB’s and second-time homebuyers. The increased demand for sectional title units is expected to continue into 2016,” concludes   Dyer.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK