Young South Africans are kissing mansions goodbye

Younger South Africans are increasingly choosing smaller, well-located apartments over large family homes, prioritising convenience and lifestyle over the high costs and long-term commitments of owning a mansion.

For decades, buying a large family home with spacious gardens, swimming pools, and multiple living areas was seen as a milestone of financial success in South Africa.

However, that aspiration appears to be changing, particularly among younger South Africans who are now entering the property market.

Speaking on The Money Show, Saxon Square’s majority shareholder, Mark Stevens, said younger generations are placing greater value on convenience, flexibility, and location than on owning a large home.

“I think we’re probably at a stage now where young people are probably more mobile,” Stevens said. “They are not as concerned with putting down roots as maybe we were in our time.”

Instead of viewing property as a long-term investment, many younger buyers see it as something that serves their current lifestyle.

“They want to get something that’s usable, something that’s nice, something that’s close to work, and to be able to use it,” Stevens explained.

He said many young South Africans are taking a similar approach to property as one might to a vehicle.

“You don’t buy a car as an investment anymore. You buy it to use it, and when your three-year or five-year period is up, you give the car back, or you sell it, and you move on,” he said.

Stevens explained that this shift has also been driven by changes in the investment landscape. Previously, the avenues for investments were much more limited.

However, younger South Africans now have easy access to equity markets and other investment opportunities.

“Why would you want to get involved in a fixed asset when you can get involved with something that’s way more exciting? I think the Gen Zs are perhaps keeping their options open at this early stage,” he said.

Rather than tying themselves to large properties with long-term financial commitments, Stevens said many young professionals prefer homes that suit their immediate needs while allowing them to remain flexible.

Convenience over space

One of the biggest factors influencing decisions among young buyers is proximity to work and everyday amenities.

Stevens said developments in well-connected urban nodes, such as Rosebank, are benefiting from buyers who prioritise shorter commutes and easy access to restaurants, gyms, and entertainment.

“To be close to work is important,” he said. “And it’s not just work.” Buyers are also seeking proximity to other things that enhance their lifestyle, such as gyms, restaurants, friends, and security.

He added that many young professionals value living in neighbourhoods where most daily needs can be met within walking distance.

“There are so many things that come with it. To be able to be close to where it’s happening becomes important,” he said.

This shift is also changing the type of homes buyers are looking for. While a larger home may have previously been considered the gold standard, many people are now choosing smaller spaces.

According to Stevens, studio apartments and smaller lock-up-and-go units, long associated with global cities such as New York, London, and Hong Kong, are becoming increasingly popular in Johannesburg.

“If you own a big property at the moment, the running costs on a large property, especially for a single up-and-coming professional, can be astronomical,” he said.

Beyond bond repayments, homeowners face maintenance costs, security, backup power and water systems, gardening, and pool upkeep.

Since younger people are also choosing areas with more lifestyle amenities, the lack of space is less of a concern, as they aren’t necessarily spending much time at home to begin with.

While Stevens acknowledged that Cape Town pioneered the trend towards compact urban living, he said Johannesburg is increasingly following suit.

In fact, Johannesburg offers better value than Cape Town in many respects, where buyers can easily pay three times as much for an apartment of the same size.

By comparison, Johannesburg still offers buyers access to well-located developments at more affordable prices.

Lifestyle drives

Stevens said modern apartment buyers are also placing greater value on the surrounding lifestyle than on the size of the property itself.

Rosebank, in particular, has evolved into one of Johannesburg’s most attractive mixed-use precincts, with new restaurants, entertainment venues and residential developments continuing to emerge.

“Those types of things are popping up in the suburbs, and they really are good places to visit, good places to meet people,” he said. “To have those types of conveniences very close by really is a game changer.”

At the same time, buyers increasingly expect developments to be professionally managed and well-maintained over the long term.

According to Stevens, sectional title developments are generally well-positioned to meet those expectations, as they are usually run and maintained by experienced, professional companies.

He added that newer sectional title developments have benefited from stronger governance and legislation.

“The sectional title market in South Africa is in a good space,” he said. “The new legislation that came out not too long ago really has put these things in a good environment again.”

For example, South Africa enacted the Sectional Titles Amendment Act in 2022, which came into effect in 2023 and was followed by the Sectional Titles Amendment Regulations of 2025.

These updates were targeted at closing loopholes in property developments and making the environment safer and more transparent for buyers.