South Africa’s property market is witnessing a shift as Generation Z steps onto the scene. Born between 1997 and 2012, these young buyers are already making their mark, bringing fresh priorities and perspectives to the industry.
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“Generation Z is redefining what it means to own a home,” says Antonie Goosen, principal and founder of Meridian Realty. “They are highly informed, tech-savvy, and value-driven, which sets them apart from previous generations.”
One of the defining characteristics of Gen Z buyers is their focus on affordability. With rising living costs and economic uncertainty, this generation is prioritising smaller, more manageable properties. “They are not necessarily looking for their forever homes but rather for starter properties that offer a foothold in the market,” Goosen explains.
Proximity to urban amenities is another key priority for these buyers. Generation Z values convenience, with many seeking homes near public transport, co-working spaces, and vibrant social hubs. “They want to be in the heart of the action, where they can easily balance work, social life, and personal pursuits,” Goosen notes.
Sustainability also resonates strongly with this demographic. Gen Z buyers are more likely to seek properties with energy-efficient features and environmentally conscious designs. “Green living isn’t just a trend for this generation; it’s a lifestyle choice that aligns with their values,” says Goosen.
Technology plays a significant role in shaping Gen Z’s property preferences. They are drawn to smart homes that integrate seamlessly with their digital lives, offering features like remote security monitoring, smart lighting, and automated climate control.
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While affordability and convenience are paramount, this generation is also open to innovative ownership models. Shared ownership, co-living spaces, and flexible financing options appeal to their desire for financial security and adaptability.
For estate agents and developers, understanding the unique needs of Gen Z buyers is essential. Goosen emphasises the importance of engaging with this audience through digital platforms and transparent communication. “This generation does their research. They value honesty, efficiency, and a personalised approach,” he says.
As Generation Z continues to enter the property market, they are reshaping it in ways that reflect their values and aspirations. “Their approach is practical yet forward-thinking. They’re not just buying homes; they’re investing in a lifestyle,” says Goosen.
READ: Top tips for buying your first home
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa shares a few golden nuggets of wisdom that could help any young property investor start on their journey towards becoming a property mogul…
- The key is to start small. Begin with lower-cost properties to minimize risk and gain experience. Focus on up-and-coming areas with potential for appreciation rather than established, expensive markets. Affording your first property will always be the most challenging. Thereafter – because of house price appreciation and the home’s ability to generate income – each property you add to your portfolio becomes just a little easier to afford than the one before.
- To be a successful real estate investor, you need to be there at the right time, right place. This is where developing a close working relationship with a reliable real estate professional is crucial. As the local expert, real estate professionals are able to share market insights and trends which can help investors spot the right opportunities that will suit their risk appetite and budget.
- Part of being successful is the ability to act when the right opportunity arises. This means working out in advance how to finance your next property purchase. There are several ways to afford this. For example, you could use the equity from your existing properties to finance new purchases; you could team up with friends, family, or other investors to pool resources; or you revert to traditional home finance if you can afford to do so. Work closely with a financial advisor to find out which option works best for you.
- As with any investment, diversification will help to minimise risks. It is better to invest across different geographic locations to mitigate suburb-specific downturns. It might also be prudent to invest in a mix of residential, commercial, and industrial properties to help spread risk across different sectors of the market.
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