Property Brief – March 2026
The latest BetterBond Property Brief - March 2026 is out!
Article highlights:
- South Africa’s economic outlook remains cautiously optimistic, although geopolitical tensions and higher oil prices are creating global uncertainty.
- The prime lending rate has fallen by 150 basis points since September 2024, supporting affordability, while GDP growth of 1.6% is expected in 2026.
- Government policy changes, including a higher capital gains tax exclusion on primary residences, could provide additional support for the property market.
- The residential property market continues to recover, with home loan applications up 3% year-on-year and 18.2% higher than the 2023 low.
- House prices have reached new highs, deposits remain lower than two years ago and home loan approval rates are improving, with Greater Pretoria leading at 73.5%.
In this month’s Economic Compass, South Africa’s outlook remains cautiously optimistic, although rising geopolitical tensions are creating new uncertainty. The war involving Iran has disrupted global freight shipping and the closure of the Strait of Hormuz has pushed Brent crude oil prices higher. As investors move towards the safety of US Treasuries, emerging market currencies have weakened, which could place pressure on inflation and potentially interrupt the Reserve Bank’s rate-cutting cycle.
Despite these risks, several domestic indicators remain supportive. The prime lending rate has declined by 150 basis points since September 2024 and the National Treasury expects GDP growth of 1.6% in 2026. The recent national budget also introduced measures that may support the residential property market, including an increase in the capital gains tax exclusion on the sale of a primary residence from R2 million to R3 million, alongside inflationary adjustments to tax brackets.
Financial markets have also shown encouraging progress. South Africa’s 10-year government bond yield has fallen sharply, reaching its lowest level in eight years and declining by 285 basis points since April last year. This reflects growing confidence in fiscal stability and the country’s improving economic outlook.
In the residential property market, BetterBond data indicates continued recovery. Home loan applications increased by 3% year-on-year in the first two months of 2026 and are now 18.2% higher than the low recorded in Q4 2023. Average home purchase prices have reached new nominal highs of R1.66 million for all buyers and R1.35 million for first-time buyers, while deposits remain significantly lower than two years ago.
Encouragingly, the home loan approval ratio continues to improve across most regions, with Greater Pretoria recording the highest approval rate at 73.5%.
The full list of data points included in the March 2026 Property Brief is as follows:
- Bond yield declines sharply
- BetterBond Index of Home Loan Applications
- Average home purchase price
- Average deposit for home purchase
- Percentage share of home loans granted per home price bracket
- Loan approval ratio by region
- Percentage change in average real home purchase price by region
- Average selling time for different house price categories
- Average annual income as a percentage of average home price by age group
We trust this month’s BetterBond Property Brief provides valuable insight into the economic environment and the trends shaping South Africa’s residential property market.
Missed last month’s insights? Read the February 2026 BetterBond Property Brief here.
Property Brief - March 2026
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