South Africa’s residential property market is showing renewed resilience, with stronger home loan activity, rising house prices and growing first-time buyer participation pointing to the sector gradually regaining momentum, despite mounting economic pressures.
While affordability pressures and cautious banking behaviour remain important risks, the market is showing clear signs of renewed confidence, particularly in regions benefiting from stronger economic growth, employment activity and rising household earnings.
• Home loan applications climbed 6.2% year-on-year as lower interest rates continue supporting buyer activity.
• First-time buyers are driving demand, with average purchase prices rising to a record R1.4 million.
• Rising deposits and elevated construction costs remain major affordability risks for the residential market.
According to the latest BetterBond Property Brief, the market continues to recover as lower interest rates, improving household finances and stronger economic activity support buyer confidence. However, elevated fuel prices, global geopolitical tensions and stricter lending conditions remain key risks to affordability and future market growth.
The Bottom Line: The residential property market is proving more resilient than many expected.
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