South Africa’s property market is showing signs of renewed stability, with average nominal house prices increasing by 2.8% over the past 12 months.
This is just shy of the latest consumer price index of 3.2%.
According to bond originator BetterBond’s latest property brief for March, seven out of SA’s nine provinces saw year-on-year (YOY) growth in nominal home purchase prices up to the end of February 2025.
However, only four provinces recorded real price growth once adjusted for inflation.
Mpumalanga emerged as the top-performing region, with real house price growth of 5.1%. The North-West, Eastern Cape, and Western Cape also posted increases in real terms.
The Western Cape continues to lead the market with the highest average house price in the country, holding steady at R2.1 million.
Other property highlights
March’s property brief also noted a 6.7% quarter-on-quarter increase in home loan applications in South Africa, with an 8.2% YOY increase in total home loans granted.
Meanwhile, the average house price for first-time buyers is pegged at R1.3 million.
BetterBond’s findings suggest cautious optimism for the property sector, with consistent price gains in key regions and signs that consumer confidence is beginning to recover.
‘Tax them’ – Cape Town mayor’s fix for housing crisis linked to digital nomads
In related news, the influx of digital nomads in Cape Town has fuelled concerns over rising rental prices and housing shortages in the Mother City.
Cape Town has become a popular hotspot for remote workers, particularly since the Covid-19 pandemic.
Stunning landscapes, rich culture, and urban sophistication gives Cape Town a city-nature balance like no other. These elements have always been a major driver of tourism to the Cape.
Add high-speed internet, modern co-working spaces, relatively low cost of living, and affordable housing and the city is a Mecca for international digital nomads.
While this extra tourism suits the local economy, it has contributed to an escalating housing crisis in the city. Read more on that story here.
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