Black residential buying power up

The growing buying power of South Africa's black middle class is having a dramatic effect on the shaping of South Africa's economy and society.

This effect is not just being felt in the retail sector, vehicle sales and financial services, but especially in the property sector, where statistics from the FNB Property Barometer show that in some markets 49% of buyers of residential property are non-white.

Kura Chihota, executive director of Leapfrog Property Group, says the residential property market is moving strongly to the black buyer.

Since the release of Unilever's "Black Diamond Report" in 2006, the new black middle class has grown by an extraordinary 30% in less than two years and in that time in excess of R50m has been added to their annual spending power.

The University of Cape Town's Unilever Institute of Strategic Marketing says there are now 2,6m Black Diamonds, or black middle class people. The survey estimates that these black diamonds represent 12% of South Africa's black adults and make R180bn a year constituting 8% of the country's total buying power.

The impact of the Black Diamond has been felt heavily in the property sector, fueling a property boom where buying a new home tops their list of priorities. The report also estimates that since 2005, about 50,000 people per month have moved out of the townships and into more affluent suburbs where almost half of the 2,6m Black Diamonds now live as opposed to only 23% in 2005.

For more information contact Kura Chihota on 083 616 0655.

Readers' Comments
Have a comment or question about this article? Email us now..

Get up-to-date property news
Would you like to receive free weekly news and information about property in South Africa? Click here to register and sign up for Property24's Week in Review.

Property News
Click here for more property news articles.

Need a blog?
Start your own blog with a free blog from 24.com.