Property Brief – July 2025

The latest BetterBond Property Brief - July 2025 is out!

There are clear signs that momentum is returning to the residential property market. For the 12 months to May 2025, home loan application volumes rose by 7.4% year-on-year, comfortably outpacing inflation (2.8%) and pointing to renewed buyer confidence. While application volumes remain 28% below their 2021 high, the latest BetterBond index shows a welcome 4.5% gain compared to two years ago. With inflation below the MPC’s target range, economists are optimistic about another rate cut at the end of July – a potential catalyst for further growth.

Average purchase prices have eased slightly, particularly for first-time buyers, whose average price dropped to R1.28 million. For all buyers, the average home price declined to R1.58 million – further evidence of a buyer’s market. Critically, the average deposit required for a home loan has dropped significantly. It went down 11% for all buyers to R272,000 and 17% for first-time buyers, to R165,000. These shifts are making homeownership more accessible – especially for younger buyers.

Bond approval activity is rising across several regions, with Greater Pretoria showing a standout 27% increase year-on-year, supported by a robust local economy. The Western Cape continues to draw buyers from other provinces, while Johannesburg South East leads in total loans granted. These trends reflect improving affordability and sustained income growth among buyers.

This month’s Property Brief includes:

In the Economist’s Notes, Dr Roelof Botha shares updates on economic growth (0.8% YOY in Q1), a 49% spike in platinum prices since January, and a sharp rebound in new vehicle sales. With household debt servicing costs starting to ease and building activity picking up in select regions, there’s a growing sense that the property cycle may be ready to turn.

If you would like to review all the issues of the BetterBond Property Brief, you can download them all here. You can download the Property Brief - June 2025 below: