Higher rates and taxes force trend towards smaller properties

"Big is no longer always seen as beautiful", says Bill Rawson of the Rawson Property Group.

Sectional title buyers tend to accept that space is expensive and that they don't need to have 110 m2 to 130 m2 of floor area. They might well be satisfied with 80 m2 - provided the decor, finishes and design compensate.

"The smaller spaces being marketed today are surprisingly more attractive than the larger spaces of a decade ago. Today's architects have learned how to maximize the potential space. They eliminate corridors, they make the kitchen and living areas open-plan and they ensure that these flow into patios or balconies, which are then used almost as much as the indoor spaces."

The exception to this trend is garages. Although in some areas it has now to be accepted that garages are simply not available, a great many buyers are willing to live in smaller apartments or homes but will only do so if secure garaging is available for one or even two cars.

The other clearly defined trend, said Rawson, is towards greater security. Buyers, he said, will pay a big premium for a home if it is protected by electrified fencing and/or guards, sensor beams and intruder prevention technology.

The swing to smaller units, added Rawson, is also driven by a growing reluctance to pay ever higher rates and taxes.

This, he said, is now so evident throughout the middle class urban areas of South Africa that people, particularly those on limited incomes such as retirees, will even shun a precinct in which values are seen to be appreciating rapidly because they realize this will lead to an increase in rates and taxes. This, he commented, is all the more understandable when it is realized that pension fund investors are now warning their clients that the heady growth of previous eras is unlikely to be achieved again in the foreseeable future.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us