According to the latest statistics from Absa, the country's biggest mortgage lender, smaller homes of between 80sqm and 140sqm have shown the strongest growth in the past 12 months, with prices rising 29,2% yoy in May to an average of R843 700.
By contrast, notes the bank's senior property analyst Jacques du Toit, medium sized houses (141-220sqm) experienced a 9% yoy growth in May to an average of R998 600, and the average price of large homes (221-400sqm) grew just 6,4%.
?With interest rates being at their lowest level since the mid 1970s and banks? lending criteria being less stringent than a year ago, the demand for housing has picked up," he says. "However, many households are still under financial stress, so potential buyers are tending to look at more affordable ? thus smaller - housing.
?Rising electricity prices, water tariffs, property rates and taxes linked to owning a property also have to be considered, and property investors are already inclined towards buying smaller units."