Property Brief – August 2025

The latest BetterBond Property Brief - August 2025 is out!

Momentum is building in the residential property market. July saw home loan application volumes jump 14% quarter-on-quarter and 12% year-on-year – the highest since Q3 2022. The BetterBond index of home loan applications is now just 8% below its 2022 peak. Further gains are expected as the latest prime rate cut from 10.75% to 10.50% begins to filter through in August. Lower borrowing costs are already improving affordability and encouraging renewed buyer activity.

The average home purchase price for all buyers reached a record R1.6 million in July, up 2.1% year-on-year. First-time buyers (FTB) also hit a new high of R1.3 million, with both increases outpacing July’s 3% inflation rate. However, deposit requirements moved higher: up 14% from Q2 for all buyers to R311,000, and up 5.8% year-on-year for FTB to R188,000. While still below early-2024 peaks, deposit trends will be one to watch as market activity strengthens.

Demand is shifting towards higher-end properties, with the share of loans for homes above R3 million rising 7% year-on-year, while loans for homes under R500,000 fell 5.7%. Buyers in their 30s saw the strongest annual price growth – up 3.9% to R1.54 million – and the Western Cape continued to lead building activity, with R4.4 billion in new houses and flats completed to July. FTBs in the province faced the largest average loan gap compared to all buyers (R252,000), while Mpumalanga recorded the smallest gap at R75,000.

This month’s Property Brief includes:

In the Economist’s Notes, Dr Roelof Botha highlights the positive impact of July’s rate cut – the fifth since September 2024 – as the prime lending rate moves to 10.50% and inflation remains at the lower end of the target range. The lower cost of credit is expected to unlock pent-up demand, boost transaction volumes in the affordable and mid-market segments and restore consumer confidence.

Missed last month's insights? Read the July 2025 BetterBond Property Brief here.