Middle-segment property performs best
Middle-income properties have overtaken their high- and low-end counterparts.
While the focus has been on the performance of the luxury property market, a shift has taken place.
From the leafy, gated-community suburbs which rake in millions, middle-segment suburbs have been attracting home buyers.
The segment was once a laggard in terms of growth when benchmarked with the upper and lower markets.
But since the 2007/2008 global financial crisis, it has recovered best, says owner of RE/MAX Dazzle Neville Brits. “Demand for properties in the high end has steadily increased but still lags behind the middle-income market.”
Property data company Lightstone, which defines the middle-segment market as property within a value bracket of R250 000 to R700 000, says the segment continues to see an annual price growth of 8%.
Together with the low value segment (homes with a property value of less than R250 000),the middle-income segment is one of the best-performing segments, despite being only 17.1% of the residential property market. See http://www.moneyweb.co.za/moneyweb-property/middlesegment-property-performs-best
