The FNB Home Buying by Race Group report by FNB reveals that racial transformation of the highly-traded former “suburban” areas continued through 2013, reflective of steady labour market racial transformation.
The estimated percentage of total suburban Black buyers has risen from 23 percent in 2005 to 31 percent in 2013.
According to John Loos, FNB household and property sector strategist, racial transformation of all areas of the economy has been high on the policy agenda over the past two decades.
The 2013 report shows 48.5 percent of White buyers, 31 percent of Blacks, 12 percent of Indian/Asian and only 8.5 percent of Coloured buyers bought into the suburban areas.
The White group has seen a decrease from 50.8 percent in 2012 and high of 57 percent in 2005 representing a significant cumulative shift, explains Loos.
Meanwhile, the estimated percentage of total suburban Black buyers has risen from 23 percent in 2005 to 31 percent in 2013, while the two previously-disadvantaged minority groups, the Asians and Coloureds, have seen their percentages remain relatively stable over the period recorded.
In 2005, the Asian percentage was 8 percent (8.5 percent in 2013) while the Coloured group at 12 percent in 2013 saw its percentage remain unchanged on the 12 percent of 2005.
Loos says the further rise in the 2013 percentage of buyers from “previously-disadvantaged” population groups is reflective of two major factors.
He says employment equity legislation is a key driver of more rapid growth in previously-disadvantaged group numbers entering the labour market, as a result, their disposable income has been growing faster than the White population group.
Loos says the ageing nature of the White population group is a contributor as this means the pace of homeowners from this group exiting the market is probably accelerating over time.
“The one key constraining factor on the pace of racial transformation in the residential market, however, is the slow pace of South Africa’s economic growth which translates into near to zero growth in employment numbers by late last year and this spills over into the pace of residential buying.”
Loos adds that despite slow economic and job growth, they expect to see a further mild rise in the percentage of previously-disadvantaged group buyers in 2014, as the transformation of the economy continues. – Denise Mhlanga
