Property

‘Tipping point’ for South Africa’s property market

Kirsten Minnaar • 25 April 2026

South Africa’s housing market is hitting a tipping point as a “two-speed” shift sees most buyers moving towards smaller sectional title homes, while wealthy buyers and returning expats upgrade to larger, premium properties.

According to Just Property CEO Paul Stevens, South Africa’s residential property market is recalibrating at a pace not seen in years, with new data and March listings pointing to a clear tipping point.

Sectional title properties now account for more than 50% of new residential transactions in many of the country’s major metros, and buyers under the age of 44 make up nearly half of all purchases nationwide.

Calling it “The Great Downsizing”, Stevens said the trend is being driven by cost pressure, lifestyle requirements, and a desire for greater control.

However, while thousands of homeowners are choosing smaller, more efficient homes, a different cohort of buyers is moving in the opposite direction.

“It’s a two-speed market,” Stevens explained. “On one side, people are choosing compact, energy-resilient living.”

On the other hand, well-capitalised buyers, including returning expatriates and younger high-earning families, are upgrading to premium freehold properties and estates where prices have stabilised.

The surge in sectional title demand is being driven by rising rates, utilities, security costs and municipal tariffs, all of which have made large homes more difficult to justify for many households.

Stevens added that hybrid work arrangements and changing family structures have also altered how people use space.

“These buyers want homes that support the way they live now. They want efficiency, security and financial manageability, which they’re finding in smaller, well-located units,” Stevens.

A typical example of a property that appeals to these buyers is a recently listed 70 m² double-storey sectional title apartment in Summerset Hill, Midrand, with a private garden and access to top private schools.

With a monthly bond repayment of around R9,300, its value and convenience offering is attracting downsizers, young professionals and first-time buyers who want secure, low-maintenance living in a high-demand node.

“This is the kind of property driving the 50% sectional title share: compact, efficient and well-connected,” he explained.

Opportunity buyers snap up large properties

Stevens explained that as downsizers release larger homes, “opportunity buyers” are absorbing them – often quickly.

These buyers are typically younger, more affluent families wanting established school zones and hybrid-work professionals needing a home office.

These properties are also popular with multigenerational households seeking flexibility and returning expatriates reinvesting foreign-earned capital.

A newly listed three-bedroom family home in Dawncliffe, Westville, priced at R1.9 million, is the sort of property these buyers might opt for.

Set on a 1,861 m² erf with a pool, secure parking, and proximity to top schools, it is attracting buyers who want garden living and current market value for the long term in an established suburb, he said.

There is also the premium end of the market. These buyers have similar needs, but have an even bigger budget.

The Just Property Summit Branch in Bryanston is currently marketing a 1,000 m² thatched estate on a 4,000 m² stand in Mount Street for R6.59 million. Stevens believes it will be sold to either a returning expatriate or a high-earning family.

The home features multiple entertainment rooms, a separate cottage, a pool, a koi pond, a tennis court and full off-grid capability, including a 55 KVA generator and a private borehole.

According to Stevens, this is exactly the kind of lifestyle, privacy and resilience that high-end buyers are actively seeking.

“These homes offer extraordinary value compared to global benchmarks. Buyers recognise that, and they’re moving.”

Suburbs are changing in real time

Reports from Just Property branches across South Africa are supporting the effects of this “Great Downsizing” trend.

Younger families are returning to long-established communities, and helping to revitalise schools, sports clubs and local businesses. Retail nodes are refocusing on convenience-driven formats that support compact living.

Security estates are absorbing upgraders, while smaller, well-located freehold houses are being snapped up by buyers who want more space but without excessive maintenance.

Traditional suburban layouts are evolving into a mix of compact freehold homes, sectional title units and estate living.

“The average modern South African home is smaller, smarter and easier to run,” Stevens said. “But the appetite for premium lifestyle properties remains strong.”

“The key is that both movements are happening simultaneously – and that’s what makes this a tipping point.”

He added that money is moving out of large, high-maintenance homes and into smaller, energy-efficient properties that offer better long-term value.

“At the same time, capital from upgraders and returning expats is flowing into established suburbs and secure estates, supporting price stability in areas that might otherwise have softened,” he said.

“The result is a more balanced market with greater mobility, more realistic pricing and a wider range of opportunities for both buyers and sellers.”

For sellers of large homes, Stevens assured that there is still a market. However, buyers today are more selective and value-driven.

Modernisation, especially energy upgrades, significantly improves saleability. Homes with solar, inverters, water storage and enhanced security are attracting higher offers and selling faster.

For buyers seeking smaller homes, Stevens explained that stock is tight in high-demand nodes. Energy-efficient features have also become assets that influence offers and final selling prices.

Stevens added that compact homes in walkable, well-serviced areas are outperforming larger properties in both speed of sale and price realism.

“The Great Downsizing isn’t about shrinking,” he said. “It’s about right-sizing, and it’s opening doors across the market.”