Most first-time buyers acquire freehold homes

WHILE the conventional perception is that first-time homebuyers typically prefer sectional title properties, over the past decade the vast majority of homes purchased by this sector as their primary residence has been freehold homes.

- DR ANDREW GOLDING

During this period, according to data from ooba Home Loans, the percentage of freehold homes purchased by first-time homebuyers has barely shifted, declining from 70% in 2014 to 66% in 2024.

Conversely, however, while first-time buyers (FTBs) may opt for freehold homes for their primary residence, there has been a clear shift towards sectional title homes as investment or buy-to-let properties. In 2014 there was a slight preference for freehold homes (52% of FTB investment purchases) but by 2024, sectional title purchases dominated at 60% of all FTB investment purchases.