Property Brief – June 2025

The latest BetterBond Property Brief - June 2025 is out!

The South African property market appears to be turning a corner, with the BetterBond index recording a 4% year-on-year increase in home loan applications for the 12 months to May 2025. While application volumes remain 34% below their 2021 peak, the recent rate cut by the Monetary Policy Committee and a stronger rand are expected to boost activity in the second half of the year.

Average home prices held steady at R1.6 million in May – 2.1% higher than a year ago – while first-time buyer prices declined slightly. This, along with a continued drop in deposit requirements, signals a more accessible market. Deposits for all buyers decreased by 6.7% year-on-year to R285,000, while those for first-time buyers fell by nearly 15% to R169,000 – their lowest level in over a year.

Regionally, loan value disparities persist. First-time buyers in North-West Johannesburg saw the biggest discount compared to repeat buyers, at R620,000. Meanwhile, the Western Cape remains the province with the highest bond values across the board. However, loans awarded for homes under R500,000 continue to decline, while those for properties above R3 million are increasing, reflecting the unequal impact of interest rates across income groups.

The full list of data points included in this Property Brief is as follows:

In the Economist’s Notes, Dr Roelof Botha highlights May’s 3.1% strengthening of the rand and a rebound in the Purchasing Managers’ Index. Retail sales reached R351 billion in Q1 2025, setting a new record. With inflation well below the SARB’s lower target, further interest rate cuts could help solidify this early recovery in housing market confidence.

Missed last month’s insights? Read the May 2025 BetterBond Property Brief here.