Property Brief – September 2025

The latest BetterBond Property Brief - September 2025 is out!

In the Economic Compass, encouraging signs include a sharp decline in bond yields, with South Africa’s 10-year yield dropping 160 basis points since January, as foreign investors returned on positive fiscal reforms. Port activity is also recovering, with container throughput up 64% since early 2024, supported by R4 billion in new infrastructure. On the commodities front, gold surged above $3,470 per ounce, while platinum remains over 50% higher than in April, both boosting South Africa’s economic outlook.

The latest BetterBond index shows renewed momentum in the housing market, with home loan applications rising 11% quarter-on-quarter and 14% year-on-year in July and August. This is the highest level since Q3 2022, following the recent interest rate cut to 10.5%. While demand is building gradually, further rate cuts could accelerate the recovery.

The average home purchase price edged just below R1.6 million, while first-time buyers (FTBs) set a new record at R1.3 million. However, the 1.2% year-on-year increase in average prices remains below inflation (3%), reinforcing that the market still favours buyers. Since Q2 2023, average home prices have grown in line with CPI at 5.9%. Encouragingly, deposit values declined 5% year-on-year for all buyers and 6% for FTBs, reflecting improving access to finance as banks ease requirements after the high interest rate cycle.

Market composition is also shifting, with 43% of loans granted for homes under R1 million, but the share of properties above R3 million has climbed 6.6% year-on-year. Regionally, Greater Pretoria led with a 4.7% rise in approval ratios, followed by the Free State, Northern Cape and Johannesburg’s south-eastern suburbs, while Mpumalanga and the Eastern Cape lagged. Notably, FTB incomes are strengthening, with Mpumalanga reporting the highest average at R56,400 per month, ahead of Greater Pretoria and the Western Cape.

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

We hope the September 2025 BetterBond Property Brief continues to support your strategic insights into South Africa’s dynamic property market.