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Black South Africans are buying more suburban homes according to a survey conducted by an FNB Estate Agent in Johannesburg followed the end of 2013.
The survey found that for the first time since the survey had started in 2005, black South Africans were purchasing more suburban homes comparatively than white South Africans. The estimated statistics of the white suburban home buyers dropped from 57% in 2005 to 48.5% in 2013.
In contrast to this, black South African suburban homes have increased from 23% in 2005 to 31% in 2013. However, there have been some attributing factors given to explain these results. Affirmative action and employment equity legislation may have led to an increase in growth in previously disadvantaged populations said the FNB property sector strategist, John Loos.
He further suggested that this increased drive into the labour force has led to growth in disposable income in previously disadvantaged groups more so than their white counterparts. Another attributing factor to the increase in black South African suburban home purchase is the aging of the white population that had originally surged the suburban home purchase percentages.
Older white populations will be exiting the property market in search of retirement alternatives which leaves more property available for the rising black middle class. The purchase of suburban homes in other racial populations included a slight rise in the Asian percentage by half a percent to 8.5% in 2013.
Coloured groups of suburban home owners remained on a level percentage as Loose explained in a statement. This in turn will reflect on the mortgage rates as well as an increase in home insurance due to the increase in disposable income.
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©Diane Moalem for Compare Guru
