Choosing Between New and Secondhand Homes: Essential Insights for Buyers

One of the biggest decisions buyers face is whether to invest in a new development or opt for a secondhand home when purchasing a property.

Last month, the Absa Homeowner Sentiment Index, a barometer of consumer confidence across six key metrics in the country’s housing market, showed that consumer confidence in South African real estate soared to the highest level in a decade.

South African consumers were feeling upbeat with their confidence in the future of residential property climbing to 87% in the final quarter of 2024.

This was the highest level recorded in a decade, with the dominance of first-time buyers in the market relative to other segments an ongoing trend.

Sentiment to buy and invest in property returned strong results in Q4 2024, while confidence to sell surpassed the 50% mark after trailing below this midpoint for the last two years – good news for the future of property stock levels in the market.

Giovanni Gaggia, CEO of Real Estate Services, says one of the standout advantages of buying in a new development is that the property is brand new-often accompanied by developer guarantees and warranty coverage, offering peace of mind.

“New developments typically feature modern, energy-efficient designs built to the latest standards. They come with developer guarantees that protect your investment and reduce unexpected repair costs,” Gaggia said.

In February, Nondumiso Ncapai, the managing executive at Absa Home Loans, said first-time homebuyers tended to prioritise secure complexes and estates offering amenities like backup power, fibre internet, and water security.

She said greater support for property developers and collaborations with banks and the government would assist in providing environmentally sustainable homes for this market at more affordable prices.

The CEO said another big benefit is security, as new developments are usually designed with safety as a priority – think access-controlled gates, CCTV, electric fencing, and often 24-hour security patrols.

“In most cases, these security features are already included in your monthly levies. That means buyers don’t have to factor in additional costs for private security. ”

Lifestyle amenities are another selling point as new estates were said to offer communal extras like swimming pools, gyms, clubhouses, and even kids’ play parks. “For buyers looking for lifestyle and convenience, these developments offer an all-in-one package,” Gaggia said.

On the other hand, Real Estate Services said there are some compelling reasons to consider the secondhand property market as well. “Older homes tend to offer more space-larger gardens, bigger rooms, and often more character. This can be a major drawcard for buyers who prioritise space and privacy.”

Gaggia said another potential advantage is cost, as buyers in the secondhand market may avoid the levies and homeowners’ association fees that often come with sectional title or estate living in new developments.

“While some developments offer amazing value, the fees can be restrictive or costly in the long term. It’s important to weigh that up,” Gaggia said.

Above all, Gaggia stressed that it is important for a property buyer to align their choice with their lifestyle, budget, and long-term goals.

“It’s important for buyers to carefully consider their priorities. Do they value convenience and security? Or do they need space and flexibility? Understanding this will help guide the right decision,” Gaggia said.

FAST COMPANY