Black luxury property ownership grows
15 March 2013
Growth of black owners in the South African property market has more than doubled in the last 10 years, according to the 2013 Property Report by property data provider Lightstone.
The report found that this change had yet to be reflected in the rest of the property market.
"Despite this, it is interesting to note that black ownership in the luxury property
market - properties valued at R1.5-million or more - has more than doubled to 7.8%
from 3.3%," managing director of Lightstone, Andrew Watt, said in a statement.
"This is clearly attributable to the increasing spending power of the middle- to upper-income black consumer; however it should be noted that this originates from a small base where the volumes remain marginal."
Watt also said that South African property ownership patterns generally had shifted over the years.
"Looking at the market as a whole across all races, it is interesting to note that
female-only ownership has increased over the last 10 years - even slightly
outstripping male-only ownership," he said.
"As a result, the market is now fairly evenly divided between female-only, male-only
and properties co-owned by both genders."
According to the report, female-only growth is highest in the black population; if the affordable/township market is excluded, however, black female-only ownership is in line with trends in the white community.
"The South African property market has been through a difficult period over the last
five years, but it is heartening to see that even with the introduction of the National Credit Act and more stringent lending conditions, we are continuing to see
transformation in the owned-property market," Watt said.