16 May.
Higher density housing.
Factors such as the affordability of housing and the increasing scarcity of serviced vacant land available for residential development in the past few years saw a major focus on higher-density residential property developments in South Africa, especially in the major metropolitan areas. These developments, consisting mostly of flats and townhouses, were also the focus of an increasing number of property investors and speculators, which caused strong growth in the demand for and supply of these types of higher-density housing. More than 251 000 new flats and townhouses were reported to have been constructed from 1995 to 2010.Due to factors such as the affordability of housing and the increasing scarcity of serviced vacant land available for residential development in especially the major South African metropolitan areas, the popularity of higher-density housing developments increased over the years.
These trends also resulted in a stronger focus by property investors and speculators on these types of properties, which supported the growing demand for and supply of flats and townhouses in the country. In view of these developments, as well as rising building costs, prices of properties in the higher-density segment of the market were on an upward trend in both nominal and real terms in recent years.
Read more at Absa Property Research
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