Property Brief – February 2026

The latest BetterBond Property Brief - February 2026 is out!

Article highlights:

In this month’s Economic Compass, South Africa enters 2026 with improving momentum, supported by a markedly stronger rand and easing inflationary pressures. The currency has strengthened significantly against major trading partners, helping to keep inflation in check and increasing the likelihood of a further repo rate cut as early as March. Such a move could provide an additional boost to economic activity and consumer confidence during the year.

Early signs of recovery are emerging across key sectors. The seasonally adjusted Absa Purchasing Managers’ Index rose sharply in January, increasing by 8.2 points to 48.7 after a weak December. While a strong rand has favoured importers, it has also reduced the cost of imported intermediate inputs. On the external front, South Africa recorded a cumulative trade surplus of R200 billion in 2025, marking the ninth consecutive year of surplus and the fourth year in which exports exceeded R2 trillion.

Domestic demand has also shown resilience. Retail trade sales reached a record R148 billion in November, 3.5% higher in real terms than a year earlier, supported by lower borrowing costs. Furniture, appliances and other durable goods outperformed inflation, reflecting improving household spending capacity toward year-end.

Against this backdrop, BetterBond’s latest data indicates a residential property market that is steadily regaining traction. Home loan activity recovered in January following the typical year-end slowdown, with applications 2.8% higher year-on-year and 10.4% above January 2024 levels. This suggests that the market is gradually shedding the effects of the elevated interest rate environment of 2023 and 2024.

House prices continued to gain momentum as the prime lending rate declined to 10.25%. In January, average house prices for all buyers rose by 4.1% year-on-year, while first-time buyers recorded a more modest increase of 1%. Although first-time buyer deposits edged slightly higher in January, deposit requirements remain meaningfully lower than two years ago. Regionally, Mpumalanga and the Western Cape led price growth at 7.2%, with the Western Cape maintaining the highest average house price at R2.26 million. Encouragingly, homebuyer incomes have continued to grow faster than inflation across most age groups, while the national home loan approval ratio improved to 63.5%.

The full list of data points included in the February 2026 Property Brief is as follows:

We trust this month’s BetterBond Property Brief provides valuable insight into the improving economic environment and the continued recovery of South Africa’s residential property market.

Missed last month’s insights? Read the January 2026 BetterBond Property Brief here.