Black owned real estate agency Leapfrog has pulled ahead of the pack to become Sowetos largest agency with 13 agents currently operating under its banner.

That’s the news from Greg Simpson, Manager of the Soweto branch who says that the branch has come far in a short time, having only opened in January this year. Soweto house prices range across a broad price spectrum from R200 000 to R1, 4m depending on locality.

Says Simpson: “The branch opened amidst particularly tough trading conditions at the beginning of the year thanks to the global economic crunch and the low ebb at which the property market was operating. Despite these factors, the Soweto branch managed to attract a strong team of agents who take pride in their work and who go the extra mile to provide exemplary service.”

Simpson is confident that the agency will continue to grow from strength to strength, a conviction he bases on South Africa’s black spending power statistics.

The 2008 UCT Unilever Institute of Strategic Marketing and TNS Research Survey into SA’s black middle class (referred to as Black Diamonds) show that this class is still growing at a healthy rate and remains surprisingly recession resilient with an annual spending power estimated at R250 billion. According to the same report, the number of Black Diamonds now stands at approximately 3 million.

Simpson says the impact of Black Diamonds on the property market has been “significant” with many of these individuals reflecting their status through their homes, thus they cite a home at the top of their list of priorities.

Simpson’s convictions are further justified by FNB’s 2008 Property Barometer which showed that 49% of buyers of residential property in some markets are non-white. Reports also estimate that since 2005, approximately 50 000 people a year have moved out of the townships to wealthier suburbs.

“The emerging Black Diamond market holds a lot of promise and growth potential and real estate agencies which position themselves to cater to this market will undoubtedly benefit from the change in market dynamics. That said, agencies will need to review their marketing, advertising and media tactics to effectively meet the needs of this evolving market.

“Leapfrog has already taken these steps and has effectively tapped into this market through employing talented black real estate agents who understand the market”.