Much of the driving force behind the stable growth in the residential property market comes from the increasingly affluent black middle class, according to an article in the February/March edition of Intellectual Property.

Improved black household incomes have changed buying patterns in housing - and, as is evident, in other consumer sectors such as motorcars, household appliances and retail in general.

The trend is most noticeable in Gauteng, the country's heavily populated powerhouse. Says Ronald Enik, the Pam Golding Group's chief operating officer: "Ownership of homes by black people in Johannesburg's affluent northern suburbs has increased by 700 percent in the past five years and the black middle class now accounts for more than 20 % of Pam Golding Properties' business - up from 7% in 1998."

The group's empowerment division has opened nine new black-owned franchise offices and has another 16 are in the pipeline. It operates training programmes for previously disadvantaged entrepreneurs and potential estate agents.

The housing boom, however, also has its flip side in that soaring prices have meant that many aspiring black buyers have found moving to more affluent suburbs unaffordable. The result has been that people stay where they are, but spend money on upgrading their existing homes - a fast-growing development across all race groups in the country.

In 1993 black households contributed less than 20% on housing and electricity. This has doubled since South Africa became a democracy - and it is gaining momentum. Black households are spending more because they are earning more, also entering income ranges which were once exclusively white.

Article courtesy of www.rodneyhayter.com

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