Momentum returns to housing market as prices hit 18 year highs

Top Highlights

• National house price inflation surged to 7.2% in April, the strongest growth since 2007.
• Real house prices up 4.4%, driven by low inflation and improved buyer sentiment.
• Recovery is broad-based across provinces, with the Western Cape leading at 7.3% growth.

‍

"South Africa’s residential property market is showing sustained momentum, offering both homeowners and investors compelling reasons to be optimistic."

‍

Following the repo rate cut announced on 29 May 2025, the latest Pam Golding Residential Property Index reveals that national house price inflation (HPI) climbed to 7.2% in April its strongest performance since late 2007 and well above the previous cyclical peaks.

‍

‍

“This surge in house price appreciation is encouraging for investors, especially with inflation remaining anchored below 3%,” says Dr Andrew Golding, CEO of the Pam Golding Property Group.

‍

With inflation-adjusted growth of +4.4% in April, real house price appreciation is now at its highest level in nearly two decades. So far in 2025, real HPI has averaged 3.4%, double the 2024 average of 1.7%.

Broad-Based recovery across Provinces

While the Western Cape remains the top performer at +7.3%, Gauteng (+5.4%) and KwaZulu-Natal (+4.8%) are closing the gap. The Eastern Cape and Mpumalanga also continue to reflect upward trends, albeit more modestly.

In the metro areas, Cape Town leads the way at +6.2%, followed by Tshwane (+2.4%), eThekwini (+1.9%), and Johannesburg (+1.8%), all showing consistent improvement.

‍

Sectional Title and Coastal Properties on the Rise

Interestingly, sectional title price growth has now matched freehold properties, both recording +3.9% in April. Coastal homes are also outpacing non-coastal markets, with coastal HPI at +5.0% compared to +3.7% inland, a reversal of last year’s trend.

‍

“With house price growth broadening across regions and asset types, the data points to a confident, stable market,” Golding concludes.

‍