Declining sales and fewer first-time buyers raise red flags in SA property market

Motheo Khoaripe speaks to Hayley Ivins-Downes, managing executive for Real Estate at Lightstone Property, about the widening gap between high and low value homes, shrinking transaction volumes, and what the sharp decline in younger buyers means for affordability, long term housing demand and South Africa’s growing generational wealth divide.

Listen to the interview in the audio player below the article.

South Africa’s property market is showing signs of a deeper structural shift, with fewer young buyers entering the market, widening price gaps, and declining transaction volumes raising concerns about long-term growth.

Recent figures show a clear drop in participation from younger buyers aged 18 to 35.

This reflects a growing affordability gap, where rising property prices and high interest rates are making it harder for younger South Africans to enter the housing market.

At the same time, overall transaction volumes have been declining. Fewer property sales suggest a market that is slowing, with buyers becoming more cautious and sellers holding out for higher prices.

Speaking to Motheo Khoaripe on The Money Show, Hayley Ivins-Downes, managing executive for Real Estate at Lightstone Property, says the data points to increasing pressure on affordability, particularly for first-time buyers.

She says higher deposit requirements, rising living costs, and slower income growth mean many are delaying homeownership or opting to rent for longer.

"...we see a sharp decline in home ownership in that 18-35, and there are no many factors that can contribute to that. Home prices that are rising faster than our wages, so kind of the inflation of the house price. You need larger deposit requirements, there's higher student debt, stricter mortgage rules generally across the banks."

- Hayley Ivins-Downes, managing executive for Real Estate - Lightstone Property

"...because people are buying houses at a much older age, the rentals are lasting longer. People are wanting to rent for longer. It's a better opportunity for them from an affordability point of view. The rental market, up until the age of 38, 39 is increasing."

- Hayley Ivins-Downes, managing executive for Real Estate - Lightstone Property

"Anything under R1.2m, you essentially don't pay transfer fees, which is obviously a big factor in terms of buying your first property. So that's where we kind of see the majority of homeownership activity happening."

- Hayley Ivins-Downes, managing executive for Real Estate - Lightstone Property