Property Brief – January 2026

The latest BetterBond Property Brief - January 2026 is out!

Article highlights:

Interest rates have eased significantly, with the prime lending rate now at 10.25% following a cumulative 150 basis point cut since Q3 2024, supporting improved affordability and confidence in 2026.
South Africa’s economy is expected to grow by 1.5% to 2% in 2026, a meaningful improvement on the near-zero growth of recent years, supported by strong mining exports and a firmer rand.
The rand strengthened by 13.8% against the US dollar in 2025, helping to contain inflation and potentially paving the way for further interest rate cuts early in 2026.
BetterBond data shows the residential property market is gradually strengthening, with home loan applications up 8.9% year-on-year despite seasonal slowdowns.
Housing affordability is improving, with first-time buyer deposits down 15% year-on-year, average FTB prices at just above R1.3 million and real homebuyer incomes growing by an average of 5.7% per year.

In this month’s Economic Compass, South Africa enters 2026 in a stronger position than a year ago, supported by easing interest rates and improving macroeconomic conditions. The prime lending rate has declined to 10.25%, following a cumulative 150 basis point reduction since Q3 2024. While growth remains modest, GDP is forecast to expand by between 1.5% and 2% in 2026 – a meaningful improvement on the near-zero growth of recent years.

External factors continue to offer support. Mining remains a key pillar of the economy, accounting for 44% of total exports in 2025, with gold and platinum prices performing strongly. The rand was one of the world’s best-performing currencies last year, strengthening 13.8% against the US dollar, including a 3.2% gain in December. A firmer currency is helping to contain inflation and could support further interest rate cuts early in 2026. Progress on energy security is also evident, with South Africa’s operational solar capacity now exceeding 11.6 GW.

Against this backdrop, BetterBond’s latest data points to a residential property market that is slowly gaining traction. While seasonal factors dampened activity in December, home loan applications were still 8.9% higher year-on-year in Q4. The November 2025 rate cut is expected to support further improvement in buyer demand as 2026 unfolds.

Average house prices continued to rise modestly, with national growth of 3.3% year-on-year in Q4. For first-time buyers (FTBs), price growth remained lower at 2.2%, with the average purchase price reaching just above R1.3 million. Deposits provided further relief, with the average FTB deposit declining 15% year-on-year, alongside improving real income growth of 5.7% per annum. Regionally, the Western Cape, Mpumalanga, KwaZulu-Natal and Greater Pretoria were the only areas to outperform inflation, with the Western Cape maintaining the highest average house price at R2.1 million.

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