One small group of South Africans holds 40% of the country’s high-value properties

Even though South Africans aged 60 and older only make up about 10% of the population, they currently own around 40% of the country’s higher-value residential properties.

Far from exiting the property market in their retirement years, South Africa’s mature homeowners remain key drivers of its growth and stability, said BetterBond’s national head of sales, Bradd Bendall.

According to LOOM Property Insights, although only about one in 10 South Africans is aged 60 or older, this cohort controls nearly half of the country’s residential property market valued at over R500,000.

Many have settled in coastal, lifestyle, and inland towns, sometimes owning up to 60% of the properties in those areas. These buyers are also less likely to move houses as they get older.

“This data challenges the assumption that retirees typically downsize into retirement villages,” Bendall said.

“Instead, many older homeowners are opting to remain in their primary properties, either from necessity or to meet their lifestyle needs.”

Another reason for this trend is the constrained supply of retirement accommodation. LOOM reported that for every one unit in a retirement development, there are 30 units owned by people aged 60 and older outside of such developments.

As there are only about 650 formal retirement complexes with around 44,000 residential units in South Africa, many mature buyers have to consider alternative housing options in their golden years, Bendall noted.

“The demand for well-located retirement developments often exceeds supply, and many retirees face long waiting lists.”

He explained that mature buyers can play a significant role in market stability. They entered the property market decades ago when deposit requirements were lower, and affordability was less of a challenge.

Many also own homes in high-value suburbs where property prices have grown significantly over time. Unsurprisingly, older homeowners also own proportionately more homes above R2 million than below.

They are staying in their properties longer, with LOOM reporting that 58% of buyers aged 80 to 85 have been in their homes for 25 years or more. This increases to 65% for owners aged 85 and over.

Greater spending power

Another reason why older buyers own a larger share of South Africa’s expensive homes is simply that they have greater spending power.

According to BetterBond data for the 12 months ending April 2026, the average income of buyers over 60 has increased by just over 8%.

These buyers are also spending just over 8% more on their homes, with an average purchase price of approximately R2.3 million.

“Buyers who are moving out of their primary homes as their needs change may downsize but not downscale in value,” Bendall said.

“Not only are older buyers remaining active in the property market, but they are also retaining ownership of high-value residential assets above the R500,000 threshold.”

Many of these buyers have built up significant equity over time, enabling them to pay substantial deposits with little reliance on financing when they do decide to invest in another property.

According to the latest FNB Estate Agents Survey, retirement is one of the life-stage changes, accounting for 21% of property sales.

“We are seeing mature homeowners choosing to hold onto their family homes as they downsize later in life,” Bendall noted.

“This reflects strong financial stability among mature buyers, making them lower risk from a lending perspective.”

The future of South Africa’s property market

LOOM also revealed that among buyers over 60 living outside retirement villages, 80% own freehold homes, and 20% opt for sectional title schemes or estate living.

This has implications for housing design and adaptation, as standard residential properties may require modifications to meet changing mobility and accessibility needs.

Adjustments include single-level living options, wider walkways, walk-in showers, and integrated smart-home automation.

For developers, there is a growing demand for inter-generational lifestyle estates offering modern homes with access to on-site healthcare and supporting amenities.

Many older homeowners settle outside of bustling urban hubs, favouring the lifestyle offering of coastal destinations and inland towns.

Popular retirement options include the West Coast, Garden Route, and KwaZulu-Natal’s North and South Coasts.

“As many mature homeowners own their properties outright or with minimal debt, they are largely insulated from interest rate fluctuations, which further supports housing market stability,” Bendall added.

Even when faced with economic uncertainty, this age group can continue to pay municipal rates and taxes, spend on home maintenance, and support community security and infrastructure initiatives.

This concentration of homeownership reflects a widening intergenerational asset gap, where older generations hold a significant share of higher-value homes while younger buyers face affordability barriers, Bendall said.

“However, as these high-value assets are inevitably passed down to the next generation, this ‘wealth transfer’ will play a role in shaping the property market for decades to come,” he added.