South African homes are getting smaller
Research indicates that South African homes are getting smaller as buyers opt for compact design, and developers look at ways to increase profit margins due to increasing construction costs.
If you have been out looking at property lately, you may have noticed that South African homes are definitely getting smaller. In fact, the FNB Property Barometer indicates that the average home has reduced from around 200 square metres to anywhere from 75 to 146 square metres. That's a drastic reduction.
Property Developers are cutting back on extras to make way for smaller homes and this affects sectional townhouse developments and sectional title units.
The main indicator for this reduction in size is the fact that buyers are looking more towards contemporary homes that are smaller in size, as well as the fact that millennials are starting a family much later in life and are looking to invest in compact, functional living spaces that are affordable and easy to maintain.
Another factor that is affecting the average size of new builds is the fact that the residential property market needs to adjust in line with the economic climate as a whole. Not only that, but urban development in property booms of previous years have resulted in a scarcity of land suitable for development. Tie this in with the ever increasing cost of fuel, increased traffic congestion on major roads and you will see that the only way to create new developments is to use whatever suitable space is available to build compact homes to meet the demand for the ideal location.
Another reason for the reduction in the size of new homes is that younger buyers, particularly millennials, are being more aware of their environment and are looking to live smaller in order to reduce their carbon footprint. With a preference for smaller homes, property developers are designing more compact homes that require fewer furnishings, cost less to maintain and produce far less waste.
The buyers' demand for compact, lock-up and go, hassle-free living is further driving the demand for sectional title homes in secure developments.
Adapted from article by Property 24