First-time home buyers drive sectional title market

Posted On Friday, 20 November 2015 20:58 Published by
Rate this item
(0 votes)

Statistics released by ooba, show that the overall demand for sectional title property has risen year-on-year (yoy) by almost 7%.

Rhys_Dyer_Ooba2

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. 

Last modified on Saturday, 21 November 2015 07:10

Most Popular

53 Telkom properties coming up for auction

Mar 02, 2020
Orange Grove
GoIndustry DoveBid SA (GoIndustry) is hosting another massive property auction on behalf…

Balwin's Munyaka registers record R850 million in opening weekend sales, selling 555 apartments

Mar 09, 2020
Steve_Brookes_Balwin_Properties
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

Young buyers driving residential property market in Bloemfontein

Mar 04, 2020
Bloem Willows
Bloemfontein is experiencing a surge in residential property transactions concluded by…

Hyprop bolsters Rosebank Mall offering through securing the Checkers Premium FreshX concept

Mar 04, 2020
Rosebank Mall
Shoppers at Rosebank Mall in Johannesburg can look forward to a world-class supermarket…

Fairvest Property Holdings maintains above-inflation growth in challenging market

Mar 02, 2020
Darren Wilder CEO Fairvest Property Holdings
Fairvest Property Holdings Limited (“Fairvest”) today again announced solid results for…

Please publish modules in offcanvas position.