19 Feb 2013
?Younger consumers believe that the recession has made them more knowledgeable about the property market than their parents were at their age,? says Adrian Goslett, CEO of RE/MAX of Southern Africa. ?The increased amount of information regarding real estate and easier access to the information via the internet and property search portals has led to many prospective buyers doing their homework more thoroughly.?
Goslett also says the majority of consumers aged between 18 and 35 still believe that homeownership is a key indicator of success and are willing to do what it takes to be able to purchase their own home.
?Statistics suggest that 75% of consumers in this age group consider homeownership a fundamental indictor of success over taking an extravagant holiday or owning an expensive car. And although the stringent lending criteria of financial institutions have made purchasing a property more challenging now compared to the property boom period, many potential first-time buyers are eager to do the necessary research and save the required deposits, even if this means a change of lifestyle.?
While it is the Generation X population (adults aged 28 to 48 who are generally well established in their careers) that is currently the most active and driving the real estate market, the Generation Y demographic is a much larger generation and is already also making its presence felt in the market, he says. ?Population statistics shows that there were 18,74 million Generation X births in SA between 1965 and 1985, but that approximately 28, 4 million consumers make up our Generation Y.? Goslett says that the larger generation will mean that the demand for property will steadily increase as Generation Y consumers reach the age to purchase their first property. However, considering that the average age of a first-time buyer in South Africa is the late 30s and that the oldest Generation Ys are now only 27, it could take some time before this generation reaches its full property potential.