More than 12000 Black Diamond families — or 50000 people — are moving from the townships into the suburbs of South Africa’s metro areas each month, says the Black Diamonds 2 survey.
This rapid migration will help fire up the struggling property market, say industry pundits. The latest Standard Bank residential property gauge shows flat growth month-on-month.
Marketers say the mass migration is the “most powerful trend we’ve seen in marketing over the last 10 years”. About 95% of Black Diamonds interviewed considered property to be an important investment tool.
Although they remain fiercely loyal to township life and communities, Black Diamonds move to the suburbs to show they have succeeded in life, and as an investment. This is reflected in the survey, where 85% of Black Diamonds said it was important to buy property in an expensive area as an investment.
However, the data also showed that 42% of Black Diamonds living in the suburbs would prefer to live in townships. “One needs to question if the functional aspect of moving to the suburb has been given less credit than is due,” said Neil Higgs, director of TNS Research Surveys.
Functional reasons could include wanting to live closer to work or closer to a child’s private school. Other functional reasons could include unavailability of property in the townships.
Pam Golding Property, which has 10 empowerment offices in townships countrywide, said its capital growth in township homes was between 30% and 40% in 2006, compared with 12% to 15% in suburbs.
Andrew Golding, group chief executive, said this was an indication of increased demand for properties in townships and not enough supply.
“It is possible that Black Diamonds end up opting to move to the suburbs because of unavailability of property in the townships,” he added.
Clearly there is a desire to project one’s status through the home:
Sunday Times
“Black Diamond” is a term coined by TNS Research Surveys and the UCT Unilever Institute to describe the South Africans that comprise the country’s fast-growing and affluent black middle class.
These 2 million Black Diamonds have an estimated annual spending power of R130-billion (and growing). While they represent only 10% of the Black SA population, they comprise 43% of black consumer spend and 23% of total SA consumer spend.
This rapid migration will help fire up the struggling property market, say industry pundits. The latest Standard Bank residential property gauge shows flat growth month-on-month.
Marketers say the mass migration is the “most powerful trend we’ve seen in marketing over the last 10 years”. About 95% of Black Diamonds interviewed considered property to be an important investment tool.
Although they remain fiercely loyal to township life and communities, Black Diamonds move to the suburbs to show they have succeeded in life, and as an investment. This is reflected in the survey, where 85% of Black Diamonds said it was important to buy property in an expensive area as an investment.
However, the data also showed that 42% of Black Diamonds living in the suburbs would prefer to live in townships. “One needs to question if the functional aspect of moving to the suburb has been given less credit than is due,” said Neil Higgs, director of TNS Research Surveys.
Functional reasons could include wanting to live closer to work or closer to a child’s private school. Other functional reasons could include unavailability of property in the townships.
Pam Golding Property, which has 10 empowerment offices in townships countrywide, said its capital growth in township homes was between 30% and 40% in 2006, compared with 12% to 15% in suburbs.
Andrew Golding, group chief executive, said this was an indication of increased demand for properties in townships and not enough supply.
“It is possible that Black Diamonds end up opting to move to the suburbs because of unavailability of property in the townships,” he added.
- 92% say that ’the community in which you live is very important to you
- 61% still think of more than one place when thinking about their home.
Clearly there is a desire to project one’s status through the home:
- 85% believe that your home reflects your position in society
- 92% agree that it’s important that your home creates the best impression possible.
- About 77% of those who took part in the survey said that when they had extra money they spent it on buying things for the home.
Sunday Times
“Black Diamond” is a term coined by TNS Research Surveys and the UCT Unilever Institute to describe the South Africans that comprise the country’s fast-growing and affluent black middle class.
These 2 million Black Diamonds have an estimated annual spending power of R130-billion (and growing). While they represent only 10% of the Black SA population, they comprise 43% of black consumer spend and 23% of total SA consumer spend.
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