Broll press office
Broll Auctions and Sales is seeing significant growth and opportunity in sectional title coming onto the market.
Government’s reduction of interest rates in response to the pandemic has boosted the home ownership market. Absa Home Loans, which tracks trends in the property market, says the under-35 age group drove the initial part of the growth after a hard lockdown. It is also this demographic that currently contributes more than 50% of activity among first-time home buyers.
In recent years, listed property groups have started to embrace residential property as an investment-class asset, and as a result, residential developments have been launched, many of them in the R700 000 to R1-million bracket, which is where we believe the market is currently at.
These are your first time buyers – students and people entering the workforce – and these homes need to be strategically positioned, either close to universities or close to office hubs to prepare for the back-to-office normality. Younger buyers are seeking properties which offer specific amenities, such as fibre and good access to transport and shopping hubs.
For this section of the market, freehold ownership is not as popular as this comes with the onerous additional costs of upkeep of external and garden areas as well as having to take care of their security requirements.The current environment is ideal for young professionals or families to buy rather than rent, and secure an asset for their future.