Kerry Dimmer
According to Ooba, quoting Lightstone data, the under-36-age group is investing in lock-up-and-go properties in, particularly, touristy areas such as the Western Cape.
The youth demographic is broadly lumped together with the first-time buyer segment, which is struggling under economic constraints that remain a constrictor to property purchases overall as per the past few years’ status quo. However, what has emerged from ooba and Lightstone’s noteworthy statistics relative to the youth, is the following:
- 15,3% of buyers aged between 18-25 are repeat buyers.
- The average age of first-time home buyers has increased by three years (up to 36) over the past decade.
- This demographic contributed 27% of total property purchases in 2023.
- The average purchase price paid by 18-—to 25-year-old buyers has risen 30% over the past five years to R1,074,858.
- An uptick in the 18- to 25-year-old group of property investors following the path to generational wealth on their own comprised 67% of home loan applications in 2019 and 73% in 2024 (year-to-date). Of the balance, only 6% are doing the same with their spouse.
- Demand for investment properties among younger buyers created the second-highest jump in home loan applications for investment properties, rising from 3% in 2019 to over 9% this year to date (18- to 25-year-olds).
While this property market segment is still relatively small and investing more in the affordable property market, they are not only getting into the property game but stand to purchase more and more expensive properties as they age.
There seems to be some disconnect between how agents market to or deal with youthful buyers and what the youth expect from the service provided. We spoke to three under-36-year-olds who have purchased properties in the past five years (names have been changed by request.)
While their property requirements were completely different, many of their experiences were similar.
Case studies
Single woman: LW
Young graduate artist LW inherited from her father’s deceased estate two years ago. She wanted to purchase property because she realised that once she qualified from university and entered the working environment as a junior, she could not afford monthly rentals. She needed a Sectional Title, a private garden, a 2-bedroom, and a secure complex with parking.
Budget: Maximum R1-million – actual property bought R850 000.
Single man in a live-in relationship: MG
Four years ago, MG, who had graduated from an agricultural college, began the search for a small agricultural holding in Mpumalanga. He wanted around 21 hectares to pursue permaculture and animal husbandry. He would be assisted financially by his parents, who would live on the farm with GG and his partner.
Budget: Under R2 million – actual property bought R2.5 million.
Married couple: L&J
Five years ago, married couple L&J began planning their future before having their first baby. They wanted to secure a free-standing house with three beds, two baths, a garden, and a swimming pool in a central business/residential area. They had a fair budget for the area and wanted to live on the property for at least one year before falling pregnant. They have since grown their family by two children and may be considering selling their existing property to buy a larger one.
Budget: R1 800-million. Actual property bought R1 850 000.
What was the purchasing experience like for our three case studies?
All three began their property search online using platforms like Private Property, Property24, Trovit, and other specialised agents in their regions of choice. These are their collective comments and opinions on the service received from the agencies involved.
- None of the agents considered Facebook, Instagram, YouTube, X or other social media platforms, citing a lack of listings on these sites. All agree they preferred social media listings because they tend to be short messages with condensed highlights.
Missed opportunity: Agents targeting the youth should promote listings on social media platforms.
- When visiting identified properties, only one listing agent explored what the potential buyers were looking for.
Missed opportunity: Agents should engage more deeply with buyers, acquiring their contact details to present them with other potentially attractive properties.
- One agent did not reveal a seller quick-fix damp problem, which was clearly evident. The conveyancers only revealed this to the young cash buyer. Two years later, the problem is still not resolved, although a transfer did take place. This may now become a legal case.
Missed opportunity: Agents should be hand-holding new youth buyers by providing advice on the state of the property.
- Agents did not stay in touch even once registering the potential buyer’s details. The buyers concerned felt that they were not being taken seriously.
Missed opportunity: Agents should stay in touch at least every two weeks, regardless of no new listings.
- Properties that may have been a little higher than the budget could have been presented to the buyers. In two cases, the buyers spent more than they expected when they found a property they loved, one through word-of-mouth and the other online.
Missed opportunity: Agents should not be considering budgets as fixed, but rather the buyer’s needs.
- Some of the properties viewed did not meet all the buyers’ needs, yet renovations could have been considered.
Missed opportunity: Agents should have talked through ideas for renovations or additions that may have encouraged the sale of a specific property.
- All buyers depended on the experience of their friends and family for advice on property purchases. None were presented with guidance from agents despite all viewings being by appointment. The viewings were purely just tours of the properties,
Missed opportunity: Agents should be guiding new, young buyers about the buying journey. In this way, they can establish a relationship for the future.
- In the case of cash buyer LW, she was not aware of all the costs associated with purchasing a property, such as transfer and conveyancing fees. Although she was given some idea of those by the agent who sold her the property of what those costs may be, she was not verbally informed that VAT was payable on the agent’s commission for example. She did not fully understand what she was committing to when signing the OTP. Being somewhat shy, she took what she was told for granted and admittedly did not know what questions to ask the agent.
Missed opportunity: Again, the agent should realise the buyer’s naivety and assist by comprehensively explaining the step-by-step details in the OTP. Agents can ally their potential buyer’s fears and should be able to recognise timidity.
- In all cases, not a single agent stayed in touch after the deal moved to conveyancing. Two of the three buyers do not even remember the name of the agent/s, only the agency/ies.
Missed opportunity: Agents could have made a better impression by at least congratulating the new owners once the property transfer took place.
Overall, these youthful buyers do not feel that the traditional form of listings and showings meets their expectations. They would far prefer to engage with estate agents their own age, who drive social media marketing, have a large following, or have a unique selling point.
