Property Brief – December 2025

The latest BetterBond Property Brief - December 2025 is out!

Article highlights:

SA’s economic momentum is building, with real GDP growing 2.1% YOY in Q3 – the strongest in three years. This is supported by 250,000 new jobs, mostly from the private sector.
The rand is one of the world’s best-performing currencies in 2025. It strengthened 10% against the US dollar, while a sovereign credit rating upgrade has boosted confidence.
The construction sector is rebounding. The Afrimat Construction Index is showing strong double-digit quarter-on-quarter growth, driven by rises in buildings completed, building materials output and plans passed.
Commodity strength continues, with gold hitting a record $4,358/oz and platinum reaching a 12-year high of $1,755/oz. This supports exports and economic stability.
The property market is steadily improving. Home loan applications are up 23.5% since Q3 2023, average deposits for first-time buyers have dropped 20% year-on-year and average home prices remain stable at R1.63 million.

In this month’s Economic Compass, South Africa’s recovery story continues to build momentum. Real GDP growth accelerated to 2.1% year-on-year in Q3 – the strongest pace in three years – supported by 250,000 new jobs, two-thirds created in the private sector. The rand remains one of the world’s best-performing currencies in 2025. It strengthened 10% against the dollar, while a sovereign credit rating upgrade has further lifted sentiment.

Activity in key sectors is also turning a corner. The Afrimat Construction Index surged at double-digit quarter-on-quarter rates in Q3, underpinned by strong growth in buildings completed, building materials production and plans passed. Commodity markets continue to offer support, with gold reaching an all-time high of $4,358/oz and platinum climbing to a 12-year high of $1,755. Meanwhile, new vehicle sales hit a record 56,000 units in October, reflecting the positive impact of interest rate cuts.

Against this improving backdrop, BetterBond’s latest data points to a steadily strengthening residential property market. Home loan applications have risen 23.5% since Q3 2023, with the index now 16% higher year-on-year. The rate-cutting cycle – 150 basis points since September last year – is easing affordability, supporting both buyer activity and bank lending appetite.

Although average home prices remain broadly stable at R1.63 million, first-time buyers (FTBs) experienced a slight quarter-on-quarter price decline to R1.3 million. Deposits continue to trend lower, with FTBs seeing a sharp 20% year-on-year drop and a 13% decline quarter-on-quarter. Rising real incomes among buyers over 40, along with stronger provincial building activity – particularly in the Western Cape – signal ongoing market resilience.

The full list of data points included in the December 2025 Property Brief is as follows: