Latest news with #BetterBond
The Citizen
a day ago
- Business
- The Citizen
Young buyers enter property market smarter, later, and on their own terms
Young buyers enter property market smarter, later, and on their own terms YOUNGER property buyers are becoming more strategic in how they approach property ownership, including those in the Upper Highway area and the eThekwini region, in general. This is the perspective of property consultants at Harcourts Upper Highway, director Harwieg du Rand and Michelle Carrie Seaton, who were commenting on Lightstone data which shows that South Africa's younger property buyers may be entering the property market later, but they are doing so on their own terms. Based on Du Rand and Seaton's experience, the trends highlighted in the Lightstone data definitely resonate with what they have observed on the ground. 'Younger buyers, especially in the 25–35 age bracket, are becoming more strategic in how they approach property ownership. While affordability and interest rates remain a concern, we're seeing a rise in creative solutions such as joint bonds between friends or siblings, the popularity of lock-up-and-go apartments with minimal maintenance, and a strong desire for lifestyle-aligned locations, even if it means compromising on space,' said Du Rand. Seaton said digital platforms have also played a massive role in giving this cohort more confidence and autonomy during the home buying journey. Seaton said the average age of first-time buyers, nationally, has moved upward in the past decade, with 36 years being the average age of a first time buyer. She added that a lot of property buying activity was observed among those aged 33-43. 'BetterBond and ooba data suggest it may be as high as 37 years in 2025. Some of MyProperty Home Loans findings quote an average of 39 years, reflecting increasing older-age entries into the market,' said Seaton. Seaton added that first‑time buyers in the 20-35 age bracket accounted for around 30% of last year's transactions, of which 69% were first‑time buyers. On the average spending by young buyers aged between 20-35, Du Rand said Lightstone data showed that this age bracket paid an average of about R999 000 for a property in 2024, whilst first-time retirees averaged R730 000. 'Those under 35 showed a trend of paying more. In 2023, 36 % paid between R1m and R3m, up from 29 % in 2018. Buyers aged between 31 and 40 had average home prices around R1.3m. 'For first-time buyers generally, of all age groups, in early 2025 the average purchase price nationally was approximately R1.264m, with deposits averaging 10.4 %, between R120 000 and R150 000. MyProperty numbers show R1.215m with bonds around R1.55m and deposits averaging R352 000 in early 2025,' said Du Rand. Also read: Tools for property investors According to Du Rand and Seaton, the Upper Highway area, which includes Hillcrest, Kloof and Gillitts, has seen a growing number of gated-estate residential communities, with higher-end retail infrastructure. 'Market pricing here is generally above national averages, given the estate-based developments, higher-value homes, and affluent demographic, so it's reasonable that young buyers in Hillcrest, Kloof likely pay at or above the R1m to R1.3m range if purchasing there. 'The average first‑time buyer age in this region is likely aligned with or possibly slightly above the national average, that is mid-to-late 30s, given typical income and property values,' said Seaton. Du Rand said Hillcrest and Kloof are known for premium residential estates with properties that often exceed national averages. 'Young buyers entering these areas often must budget for significantly larger deposits, and for higher bonds,' said Du Rand. Here is a table provided by Du Rand and Seaton: Metric National Trend (2024–2025) Likely in Hillcrest/Kloof Avg age, first-time buyers ~36–37 yrs (range mostly 33–43) Mid‑30s to ~40 (due to higher affordability requirement) Spend by 20–35‑year‑olds ~R999 000 avg (with many between R1m–3m) Likely ≥ R1 m–1.3 m or higher General first‑time purchase ~R1.2 m–1.3 m avg Likely on higher side of that spectrum Meanwhile, according to the data sourced from Lightstone, buyers aged 20-35 accounted for almost a third of all residential property transactions in 2024. It was also found that while affordability and high interest rates have caused some delays, this cohort is still a major force in the market, driving nearly 70% of bond approvals in recent months. For more from Northglen News, follow us on Facebook , X or Instagram. You can also check out our videos on our YouTube channel or follow us on TikTok. Click to subscribe to our newsletter – here
IOL News
6 days ago
- Business
- IOL News
SARB missed key opportunities to cut interest rates, says property group
The South African Reserve Bank's potential interest rate cut next week could aligns with global monetary policy trends. Image: SARB/Facebook The South African Reserve Bank (SARB) has definitely missed at least two vital opportunities to cut the interest rate, says Samuel Seeff, the chairman of the Seeff Property Group. He told "Independent Media Property" that the lacklustre economy and the property market need an injection of energy, and no doubt it needs a rate cut, while the Bank has been too overly cautious. 'This is not a time for a 'wait and see' approach; it's time for bold action, and a cut of at least 25bps. "The SARB stance has been particularly disappointing given that the data has been very favourable for lower rates throughout this year, with inflation below or near the bottom of the target range, and the ZAR relatively stable, notably trading below R18, even after Trump's latest tariff comments,' Seeff said. While global markets are dealing with the economic uncertainty triggered by US tariff hikes, South Africa's residential property sector continues to show encouraging signs of resilience. BetterBond's data for July shows that bond applications have risen by 7.4% for the 12 months to May 2025, with home loans granted up by an impressive 13.6%, says Bradd Bendall, BetterBond's National Head of Sales. He said this points to renewed buyer confidence and a more stable market environment. 'Driving this upward trend is the recent easing of interest rates. With inflation recently comfortably within the 3 to 6 percent target range, we expect the South African Reserve Bank to announce another 25 basis point rate cut when the Monetary Policy Committee meets next week,' Bendall said. He said this would drop the prime lending rate to 10.5%- a level last seen in November 2022. 'Although not quite at pre-pandemic levels, this cut would bring welcome relief to homeowners and consumers. On a R2 million bond, for example, the lower prime lending rate would mean a saving of just over R300 a month.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading BetterBond said this potential cut aligns with global monetary policy trends. This was because both the Bank of England and the Reserve Bank of India are expected to reduce rates in August, suggesting a broader shift toward interest rate easing to stimulate economic activity. The US Federal Reserve is also expected to lower rates when it meets on 30 July, and the South African Reserve Bank is likely to follow suit the following day at its rate announcement, the bond originator said. Seeff said its take is that the Reserve Bank needs to be bold and act in the interest of the South African economy. 'The MPC needs to focus on what the SA economy needs, a bold rate cut which can serve as a rocket to push the economy and try and grow the GDP, a critical necessity given the unemployment rate and what is best for everyone in South Africa.' The next SARB's Monetary Policy Committee will announce the July interest rates decision next week. Independent Media Property
Zawya
17-07-2025
- Business
- Zawya
Top suburbs for buy-to-let investments in South Africa: where to invest now?
High yields, low vacancies and rising rental demand are fuelling investor confidence in South Africa's rental market. With the country's average gross rental yield reaching 10.36% in Q2 2025 and national vacancy rates at their lowest since 2016, conditions are ripe for property investors. Bradd Bendall, BetterBond's National Head of Sales, says investors should look closely at suburbs offering a combination of strong rental yields and low vacancy rates — the clearest indicators of sustainable income and tenant demand. "South Africa's residential rental market is showing strong growth, with demand outpacing supply in many parts of the country, says Bradd Bendall, BetterBond's National Head of Sales. 'This, coupled with the relatively low prime lending rate, creates ideal conditions for investors looking to expand their buy-to-let portfolios.' The PayProp Rental Index for Q1 2025 reports a year-on-year rental increase of 5.6%; a performance the report describes as 'the best South Africa's rental market has seen in years'. When identifying promising suburbs for property investment, Bendall says two key metrics should be top of mind: rental yield and vacancy rate. According to the Global Property Guide, South Africa's average gross rental yield stood at 10.36% in Q2 2025. Drivers of rental yield Factors that influence rental yield include location and demand. 'Properties in urban centres, university towns or commercial hubs tend to offer higher rental returns,' says Bendall. 'Not only is the tenant demand usually high, but the rental income is more consistent.' Different property types can offer stronger rental yields. Apartments and sectional-title units typically require minimal upkeep, making them more cost-effective to maintain. Their lock-up-and-go convenience also appeals to a wide range of tenants. Properties located in areas with reliable service delivery, strong infrastructure, and robust economic activity are consistently in demand. Long-term leases tend to provide a stable and predictable income stream, while short-term rentals, particularly in popular tourist destinations along the coast, may deliver higher returns, but require more management. 'Consider your investment goals carefully when choosing where to invest in an income-generating property,' advises Bendall. 'Work with estate agents in your preferred area to understand the market and demand. Factor all costs, including levies, rates and maintenance in your calculations when estimating a property's likely rental yield.' Considering the two metrics - rental yields and vacancy rates - Bendall recommends the following buy-to-let suburbs by province: Western Cape: TPN reports that the Western Cape recorded its lowest vacancy rate to date in the third quarter of 2024. Vacancy rates dropped to 1.07%, down significantly from the previous low of 1.16% reported in early 2016. 'This low vacancy rate is a combination of high demand and low supply,' explains Bendall. 'A semigration hotspot, many people relocating from other provinces to the Western Cape will rent before they buy.' The PayProp Rental Index reports that the province also boasts the highest average rent in the country at R11,285, with a 9.6% annual increase that is well above the national average. In Cape Town, Woodstock, Observatory, and Salt River are top picks for student and young professional renters seeking proximity to universities and commercial centres. Rental yields in these suburbs range between 8% and 11%, with student accommodation developments like Peak Studios in Observatory reporting occupancy rates as high as 98%. Bellville in Cape Town's northern suburbs is also a strong performer, says Bendall. Popular with young families and young professionals, Bellville enjoys low vacancy rates and rental yields of up to 11%. 'Many of the rental properties in this area are spacious and offer comparative value for money. They are also well-located close to amenities and recreational facilities. Johannesburg: Gauteng consistently ranks as one of the top-performing provinces for rental income. Research by The African Investor indicates gross rental yields of 11% to 16% in the province, with an average rent of just over R9,200 - the third highest in the country. Sandton remains one of the most sought after suburbs in the country, with buyers and tenants drawn to a vibrant, cosmopolitan lifestyle. Located within Gauteng's economic hub, Sandton is conveniently located with easy access to airports and other parts of Gauteng. Sandton's rental market has wide appeal. It attracts young professionals, expatriates and families who want to enjoy the lifestyle it offers. Luxury sectional-title units offering convenience and security are particularly sought after in Sandton and neighbouring Rosebank, notes Bendall. Bedfordview's rental market has remained resilient, with its secure estates reporting rental occupancy rates consistently above 90%. Investors are also interested in Braamfontein, where a strong demand for student accommodation is seeing rental yields of over 10%. Similarly, a need for student accommodation is driving rental demand in Pretoria, notes Bendall. Menlyn, Brooklyn, Hatfield and Arcadia are high-demand areas, especially with students and young professionals. 'The combination of low vacancy rates and relatively high rental yields of between 9 and 11%, make these areas a good option for savvy investors. KwaZulu-Natal: According to TPN's Vacancy Survey Report for Q3 2024, the vacancy rate in KwaZulu-Natal declined to 7.12% by the end of the year, slightly lower than the 7.36% recorded in 2023. In Durban, Umhlanga and Ballito remain sought-after rental hotspots, offering consistently high rental yields and low vacancy rates. These areas are also popular among tourists and business travellers, with developments such as The Pearls of Umhlanga achieving occupancy rates of up to 90%. 'The North Coast of KwaZulu-Natal is experiencing significant growth, with new developments attracting a range of buyers and investors,' says Bendall. The Sibaya Coastal Precinct, by example, offers a dynamic work-live-play lifestyle and a variety of rental properties designed to meet tenants' changing needs. Time to invest With the prime lending rate currently at 10.75%, the climate is favourable for savvy investors looking to secure high-yield rental properties with low vacancy rates. 'A well-located property in areas with strong access to transport, education, and economic opportunities is more likely to deliver solid rental returns and sustained occupancy.' says Bendall. 'Investors would do well to make the most of the current rates environment by investing in property in areas where the demand for rental accommodation is high and sustained.'
IOL News
10-07-2025
- Business
- IOL News
South Africa faces a decline in homebuying activity amid economic challenges
If the US does implement the 30% tarrifs on all South African imports on August 1, homebuying activity in the country may ultimately slow down. Image: Sergio Souza/Pexels South Africa may see a dip in homebuying activity as consumers grapple with various economic challenges and rising household costs. Although the tariff increases do not directly target South Africa's residential property market, there will be some indirect implications as they will have an impact on economic slowdown, investor sentiment and inflation, says Bradd Bendall, the national head of sales at BetterBond. 'Tariff increases will affect major industries, such as the motor vehicle industry, which could hamper the country's economic growth. Job losses in these industries as a result of the tariffs will reduce consumer spending power,' Bendall said. He added that higher tariffs could also weaken the rand, making building materials more expensive. # "This could lead to much-needed new residential developments being delayed or becoming more expensive, he said. However, Bendall said every stock market decline in recent years has been followed by recovery and even a new growth phase. 'We saw this in 2020 with the pandemic, where governments responded with fiscal support and low interest rates, which resulted in an unexpected market rebound in subsequent months.' The industries that have already been flagged as being at significant risk if the United States(US) 30% import duties are implemented next month are notably automotive manufacturing, steel and aluminium, and agricultural products, says John Loos, the senior economist for Commercial Property Finance at FNB. He said should any of these sectors experience financial strain, the direct property risk would lie primarily with the manufacturing segment of industrial property and, to some extent, the logistics and warehousing component, particularly where export-dependent tenants may come under financial pressure. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'However, there is also a broader, indirect risk to the property sector stemming from the wider economic consequences of any export-related shock. Manufacturing is deeply interconnected with other sectors of the economy, which would also be affected to varying degrees. "For example, household financial stability is crucial for residential property demand, as well as for retail consumption, which underpins the health of shopping centres. "Therefore, if the large manufacturing sector were to experience significant job losses, this could reduce residential and retail purchasing power, impacting both the residential and retail property markets,' Loos said. In essence, the direct potential impact would be felt most in the manufacturing component of industrial property, and perhaps to a degree in warehousing, with broader indirect effects rippling through various segments of the property market due to the overall economic impact of such an export shock, he added. Furthermore, the senior economist said that while many agricultural products are produced on farms and fall outside of the urban commercial property market, any economic damage from disrupted agricultural exports could still indirectly affect urban property markets, especially in smaller centres whose local economies rely heavily on agriculture. Loos said export-focused tenants that are heavily dependent on the US demand may likely seek to diversify into other global markets to mitigate risk. Bendall said that while the US tariffs will have an effect on some local markets, South Africa has several key macroeconomic indicators pointing in the right direction that will help pave the way for sustained economic growth and more employment opportunities in the longer term. He said inflation is currently well within the 3-6% target range and there is no reason for the South African Reserve Bank(SARB) to hike the prime lending rate when it meets again at the end of this month. 'There is also talk of lowering the target band of the interest rate. Fortunately, the rand has remained firm, despite the announced intention to hike tariffs from the beginning of next month. 'The property market has repeatedly shown its resilience and remains an asset class that can offer reliable returns. BetterBond's June Property Brief reported a 4% year-on-year increase in home loan applications for the 12 months to May 2025. "This suggests that the property market is showing signs of growth amidst the geopolitical uncertainty that has marked the first half of 2025. As always, consumers are urged to budget wisely and avoid unnecessary debt during these uncertain times,' Bendall said. Loos said another potential consequence of an export shock is its impact on the broader economy and, by extension, government tax revenue. He said a reduction in revenue could widen the fiscal deficit, increasing the government's borrowing needs and putting upward pressure on bond yields. 'Since bond yields influence property capitalisation rates, this could result in upward pressure on cap rates and, consequently, downward pressure on property valuations,' Loos said. Tariffs continue to dominate the headlines, but US Fed minutes have added a twist, says Bianca Botes, Director at Citadel Global on Thursday morning. She said only a few officials backed a July interest rate cut, with most citing inflation risks tied to US President Donald Trump's tariff spree. 'Markets now expect cuts later this year, but not imminently,' Botes said. According to Botes, the rand is trading largely rangebound as markets wait to see the outcomes of tariff negotiations leading up to August 1. Independent Media Property
The Citizen
25-06-2025
- Business
- The Citizen
Flexible, tech-savvy and independent – SA's youth is shaping the property market
South Africa's youth may be entering the property market later than previous generations — but when they do, they're doing it on their own terms. From flexible co-living spaces to joint bonds with friends, Gen Z and Millennial buyers are challenging the old rules of homeownership, says Bradd Bendall, BetterBond's national head of sales. Recent data from BetterBond and Lightstone shows that buyers under 35 now account for nearly a third of all residential property transactions, with first-time buyers — 69% of whom are under 35 — dominating home loan approvals. 'Younger buyers are still very active in the home loan space, even if they're waiting a bit longer to make their first purchase,' says Bradd Bendall, BetterBond's National Head of Sales. 'They're approaching property investment with a more considered, flexible mindset.' Lightstone data shows that buyers aged 20 to 35 accounted for nearly a third of all residential property transactions in 2024, making them the second-largest buyer group after those aged 36 to 50. BetterBond data, meanwhile, reveals the average age of a first-time buyer is now 37, suggesting that many are choosing to wait until they are financially stable before stepping onto the property ladder. Yet they are still a force to be reckoned with: FNB reports that first-time buyers made up nearly 68% of all bond approvals in April 2024, with 69% of those falling within the 'youth' category. Gen Z: digital-first and flexible The younger cohort of this market — Gen Z buyers aged 20 to 28 — are especially tech-savvy and values-driven. They want homes that support smart technology, sustainability, and flexible living arrangements. 'These buyers are open to alternatives like micro-apartments for lock-up-and-go living, or co-living spaces with shared amenities,' explains Bendall. 'They're also more likely to apply for joint bonds with friends or family to increase affordability — and many qualify for 100% loans.' Gen Z prefers to manage their homebuying journey digitally — from affordability calculations to pre-approval and bond applications — often using BetterBond's online tools. Millennials: independent and investment – wise Millennials (aged 29 to 44) are taking a different path — but they're just as determined. 'We're seeing a strong trend among Millennial buyers, especially single black women under 40, who are choosing to buy property independently rather than wait for marriage,' says Bendall. This group is strategic: they're open to joint bond partnerships with friends, rentvesting (buying in affordable areas while renting where they want to live), and focusing on lifestyle over size. Many prefer smaller sectional title homes or apartments in mixed-use, security estates — especially in vibrant urban areas like Cape Town's CBD. As research from audience research company GWI shows, Millennials want to invest in their health and wellness, lifestyle is an important consideration when it comes to buying a home, says Bendall. 'The size of the property is less important than its location and access to amenities.' Bigger budgets, bigger ambitions Younger buyers are also spending more on property than they did last year. BetterBond's application data shows that Gen Z buyers are now spending an average of R1.5 million — up almost 7% and Millennials are averaging around R1.25 million on a home purchase. Part of this increase is due to rising home prices, but improved income levels and a more favourable interest rate outlook play a hand too. Importantly, the transfer duty threshold has been raised to R1.21 million, making property more accessible to this group of buyers. Market outlook The rise of younger buyers — especially in the first-time buyer segment — is a strong driver of home loan activity and an encouraging sign of renewed confidence in the housing market. Their demand for flexible, affordable, and digital-first solutions is reshaping how developers design homes and how estate agents manage transactions, adds Bendall. For example, developers are increasingly including co-living spaces, energy-efficient features, and remote working hubs in new builds, while estate agents are streamlining the buying process with virtual tours, online bond calculators, and digital application tools. 'Today's young buyers know what they want — and they're not afraid to rewrite the rules to get there,' says Bendall. 'That's good news for the future of the South African property market.' Issued by Lia Mundell
