11 suburbs where South Africa’s young middle class want to live – and what they’re paying

11 suburbs where South Africa’s young middle class want to live – and what they’re paying

More of South Africa’s young middle class are choosing to buy instead of rent, and Gauteng remains a hotspot due to affordability and economic opportunity.

While affordability remains a major constraint, Gauteng continues to be the most attractive region for younger buyers due to its lower prices and proximity to economic and employment hubs.

According to Samuel Seeff, chairman of the Seeff Property Group, buyers under the age of 35 currently account for around 27% to 30% of all residential property purchases, making them the second-largest buyer group after those aged 36 to 50.

Although this represents a decline from earlier years—young buyers made up 41% of the market in 2014—recent interest rate cuts over the past 18 months have begun to restore confidence in this highly rate-sensitive segment.

Almost 70% of buyers under 35 are first-time homeowners, but affordability pressures have pushed the average age of first-time buyers to about 37, up from 33 a decade ago.

Younger buyers are also far more reliant on home loans, with more than 70% of purchases in this group financed through mortgages.

As a result, price sensitivity is high, with roughly 60% of under-35s buying homes priced below R1 million, while higher-earning professionals tend to stretch to around R2 million. 

Purchases below R1.2 million also allow buyers to avoid transfer duty, adding to the appeal of entry-level properties.

Seeff noted that younger buyers favour sectional title homes such as apartments, townhouses and properties within security estates, rather than older freestanding houses.

New-build developments are also attractive, particularly those offering solar or inverter systems to reduce exposure to load shedding.

Many buyers are also motivated by investment potential, purchasing properties that can generate rental income alongside long-term capital growth.

Giovanni Gaggia, founder and CEO of Real Estate Services South Africa, said the return of young middle-class buyers in 2026 is not a return to traditional buying behaviour.

Instead, this cohort is highly strategic and data-driven, willing to trade space for security, predictable costs and access to transport routes and employment nodes.

Most in-demand suburbs

Young buyers are also prioritising fibre connectivity, levy structures, security, and lifestyle amenities, with modern sectional title developments often preferred over established suburban homes.

Property data shows that Johannesburg remained the strongest drawcard for younger buyers, with growing momentum also evident in Ekurhuleni and Pretoria/Tshwane.

Popular Gauteng suburbs include Lonehill, where entry-level apartments typically sell for between R950,000 and R1.4 million, and Die Hoewes in Centurion, offering a mix of starter flats and townhouses priced from around R650,000 to R1.6 million.

These areas are especially popular with commuters and young professionals seeking lock-up-and-go living.

Areas such as Impumelelo in the Devon and Sedibeng region are also beginning to attract attention due to relative affordability.

Despite ongoing price pressures, Cape Town continues to see strong demand from younger buyers, particularly in suburbs that balance affordability with lifestyle appeal.

Parklands remains a standout, with average prices ranging from R1.15 million to R1.45 million, offering coastal living and extensive amenities.

In the Eastern Cape, Lorraine in Gqeberha has emerged as a hotspot for first-time buyers, with prices typically between R950,000 and R1.25 million, largely driven by modern townhouse complexes.

Lower Walmer, priced between R1.4 million and R1.9 million, has also gained popularity among young professionals wanting proximity to the airport business hub and a growing café culture.

Looking ahead, Justin Easthorpe, provincial sales manager at ooba, said the most important structural shift in the market is the growing influence of first-time buyers.

Easthorpe also pointed to a clear demographic shift, with more women entering the property market and a broader buyer profile emerging.

In a more stable interest rate environment, younger generations are expected to play an increasingly important role in shaping South Africa’s residential property landscape.

Credit: www.businesstech.co.za