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- South African homebuyers are looking past large suburban properties for smaller and safer apartments.
- Newly launched residential developments with on-site supermarkets, restaurants, bars, and gyms are becoming increasingly popular.
- The pandemic-induced hybrid work model coupled with ever-increasing petrol prices are pushing homebuyers to 15-minute neighbourhoods.
- In these neighbourhoods, residents don’t need to get into their cars to seek out work or entertainment.
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South African homebuyers are trading size for security and they’re actively seeking out ’15-minute neighbourhoods’ with nearby access to work, schools, entertainment, and shops.
The global Covid-19 pandemic has changed how and where people work and live. South Africa’s residential property sector has seen its best buyers’ market in decades, mainly due to low interest rates.
The semigration trend, with coastal towns attracting inland buyers seeking a better work-life balance, is expected to continue. And while more people are expected to move to the city centres, the hybrid work model is likely to see sustained interest in nearby suburbs.
These suburbs will need to be well-equipped, with easy access to nearby amenities, a strong sense of community, and safe. Homebuyers don’t mind staying in smaller properties, like apartments or townhouses, as long as they feel safe and don’t need to travel far from where they live.
“All our existing research and observations from the market support the fact that, in general, people will trade size for security and location every day of the week, especially if they can enjoy greater recreational benefits within close proximity of where they sleep,” says Stefan Botha, director of Rainmaker Marketing, which specialises in South Africa’s property sector.
This has revived the concept of the 15-minute neighbourhood, which allows residents to access everyday services without needing to get into their vehicles.
The pandemic-induced work-from-home trend has made these neighbourhoods more popular and soaring petrol prices – which show no signs of abating – is driving further interest, according to Botha.
Cape Town’s Station House, in Sea Point, is an example of this “hyperlocalisation”. The recently launched development, with more than 200 apartments, achieved R310 million in sales in under three months. It features a fitness centre, restaurant, deli, bar, meeting pods, and Pick n Pay supermarket on the ground floor.
The WATT Club in Durban’s CBD, where apartments start from under R600,000, is another example. As is HQ Sandton, which has South Africa’s largest rooftop garden, coworking spaces, a gym and restaurant, all within walking distance from Sandton City Mall.
“With 15-minute neighbourhoods, homeowners and investors are weighing up the costs of this convenient arrangement with home price, travel costs, etc. dictating what in the long run will be deemed as most cost-effective,” says Botha.
“Based on our National Residential Property Trends survey for 2021, we can confidently say that location is a key driver for property growth. The closer people are to everything they need, the better.”
(Compiled by Luke Daniel)
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