Two-speed property market emerges across South Africa
Dubbed “The Great Downsizing”, the trend reflects rising costs, changing lifestyles and a need for control. While many opt for smaller, efficient homes, a separate group of affluent buyers is simultaneously upgrading, creating a distinct two-speed market across the country’s housing landscape.
“It’s a two-speed market,” Stevens explains. “On one side, people are choosing compact, energy-resilient living. On the other, well-capitalised buyers - including returning expatriates and younger high-earning families - are upgrading to premium freehold properties and estates where prices have stabilised. Both movements are reshaping the market in real time.”
The new demand: smaller, smarter, easier to run
Stevens notes that the surge in sectional-title demand is being driven by rising rates, utilities, security costs and municipal tariffs, all of which have made large homes harder to justify for many households. Hybrid work and changing family structures have also altered how people use space.
“These buyers want homes that support the way they live now,” he points out. “They want efficiency, security and financial manageability, which they’re finding in smaller, well-located units.”
A typical example, he says, is a recently listed 70m² double-storey sectional-title apartment In Summerset Hill, Midrand, with a private garden and access to top private schools. With a monthly bond repayment of around R9,300, Stevens says its combined value and convenience offering is attracting downsizers, young professionals and first-time buyers who want secure, low-maintenance living in a high-demand node.
“This is the kind of property driving the 50% sectional-title share: compact, efficient and well-connected,” he states.
’Opportunity buyers’ are stepping into the space
As downsizers release larger homes, Stevens continues, ‘opportunity buyers’ are absorbing them - often quickly. “These buyers are typically younger, more affluent families wanting established school zones, hybrid-work professionals needing a home office, multigenerational households seeking flexibility, and returning expatriates reinvesting foreign-earned capital.”
A newly listed three-bedroom family home in Dawncliffe, Westville, priced at R1,899m, reflects this movement. Set on a 1,861m² erf with a pool, secure parking and proximity to top schools, it’s drawing buyers who want garden living and current market value for the long-term in an established suburb, he says.
And there’s the premium end of the market. The Just Property Summit branch in Bryanston is marketing a 1,000m² thatched estate on a 4,000 m² stand in Mount Street for R6.59m, and he believes it will be sold to either a returning expatriate or a high-earning family.
With multiple entertainment rooms, a separate cottage, a pool, koi pond, tennis court and full off-grid capability including a 55 KVA generator and private borehole, this is the kind of lifestyle, privacy and resilience that high-end buyers are actively seeking, he maintains.
“These homes offer extraordinary value compared to global benchmarks. Buyers recognise that, and they’re moving.”
Suburbs are changing in real time
Reports from Just Property branches across South Africa support the effects of the ‘Great Downsizing’:
- Younger families are returning to long-established communities, and helping to revitalise schools, sports clubs and local businesses.
- Retail nodes are refocusing on convenience-driven formats that support compact living.
- Security estates are absorbing upgraders, while smaller, well-located freehold houses are being snapped up by buyers who want more space but without excessive maintenance.
- Traditional suburban layouts are evolving into a mix of compact freehold homes, sectional title units and estate living.
“The average modern South African home is smaller, smarter and easier to run,” Stevens says. “But the appetite for premium lifestyle properties remains strong.
"The key is that both movements are happening simultaneously - and that’s what makes this a tipping point.”
Capital is flowing differently
Stevens says the capital flows behind the trend tell a clear story.
“Money is moving out of large, high-maintenance homes and into smaller, energy-efficient properties that offer better long-term value. At the same time, capital from upgraders and returning expats is flowing into established suburbs and secure estates, supporting price stability in areas that might otherwise have softened. The result is a more balanced market with greater mobility, more realistic pricing and a wider range of opportunities for both buyers and sellers.
What sellers and buyers should know
According to Stevens, for sellers of large homes:
- There is a market, but buyers are selective and value-driven.
- Modernisation - especially energy upgrades - significantly improves saleability.
- Homes with solar, inverters, water storage and enhanced security are attracting higher offers and selling faster.
For buyers seeking smaller homes:
- Stock is tight in high-demand nodes.
- Energy-efficient features have become assets that influence offers and final selling prices.
- Compact homes in walkable, well-serviced areas are outperforming larger properties in both speed of sale and price realism.
“The Great Downsizing isn’t about shrinking,” Stevens concludes. “It’s about right-sizing and it’s opening doors across the market.”