House sizes

Owen Dormehl, CEO of Dormehl Property Group says “The tendency of small and medium sized homes escalating in price at a faster rate than large homes has been with us for more than a decade. This trend is not motivated by varying mortgage lending rates but is driven by purchasers considering the other periphery costs of home ownership.

These include the ever increasing costs of electricity, municipal rates, domestic assistance, garden services, general maintenance of the dwelling plus the continually rising cost of security which are all appreciably greater when owning and maintaining a large home.

Taking into account the economic demographics in most populations we realise that there will always be more middle class income earners than affluent families and we in South Africa are no exception to this rule.

All these factors contribute to an onward, growing demand for small and medium sized homes. Having said that, there will always be a level of demand for large homes as a percentage of purchasers will move up the property ladder and eventually attain their dream ‘palatial home’ which will not only offer them a more unique and luxurious life-style but will also be a reflection of their evident success.”

Article by: www.dpgprop.co.za