Property Brief – October 2025

The latest BetterBond Property Brief - October 2025 is out!

Article highlights:

South Africa’s economy is showing renewed strength, with the rand up over 9% against the US dollar since January, moderating inflation and rising exports and tourism supporting growth.
Lower interest rates are boosting the property market, with BetterBond home loan applications up 11.6% quarter-on-quarter and 14.6% year-on-year – the highest levels since early 2022.
Average home prices reached record highs of R1.6 million overall and R1.3 million for first-time buyers, while deposits are declining thanks to improved affordability and easier access to credit.
The Western Cape leads residential development activity, accounting for 38% of the value of all building plans passed nationally, reflecting strong investor and buyer confidence.
Household incomes continue to rise, supporting housing demand, as detailed in BetterBond’s October 2025 Property Brief covering pricing, deposits, income trends and market indicators.

In this month’s Economic Compass, South Africa’s macroeconomic outlook shows continued resilience. The rand has strengthened by more than 9% against the US dollar since January, outperforming nearly every major currency. A firmer currency, combined with moderating inflation, has improved the outlook for another interest rate cut before year-end. Meanwhile, high value-added exports to Europe have surged 24% year-on-year to R233 billion, and tourism arrivals reached 1.3 million between January and July – further signs of an economy gaining ground.

The latest BetterBond index of home loan applications confirms that this improving backdrop is filtering into the property market. Home loan applications rose 11.6% quarter-on-quarter and 14.6% year-on-year in Q3 2025 – the highest level since early 2022. Five consecutive repo rate cuts have clearly reignited buyer activity, with applications now 26% above the 2023 low.

The average home purchase price broke a new record at R1.6 million, while first-time buyers (FTBs) reached R1.3 million. Over the past six years, average home prices have climbed 10.7%, reinforcing property’s long-term value as an investment. Encouragingly, deposits are trending lower: FTB deposits are 15% below last year’s peak, reflecting better access to credit and increased affordability in the lower interest rate environment.

Regionally, the Western Cape continues to dominate, accounting for 38% of the value of all residential building plans passed this year – a strong indicator of sustained confidence in the province’s housing market. Nationally, homebuyer incomes remain on an upward trajectory, with average household income reaching R95,000 in September, up 9% year-on-year.

The full list of data points included in the October 2025 Property Brief is as follows: