SA Property Trends: What Buyers and Investors Need to Know

Top 3 Takeaways

• Affordability remains a key driver for first-time buyers.
• Buy-to-let activity is rebounding in growth nodes.
• Confidence improving, but caution still shapes decision-making.

Introduction

‍South Africa’s residential property market continues to show resilience amid economic uncertainty, with shifting buyer behaviour, rental demand uptick, and affordability trends shaping the landscape.

Both first-time buyers and buy-to-let investors are adapting their strategies to match changing conditions, interest rates, and financial pressures.

Key Findings

• First-time buyers remain active, especially in the R750,000 - R1.2m range, driven by favourable bond approval rates and no transfer duty.
• Buy-to-let investment is showing renewed momentum, particularly in well-located urban zones and student housing markets.
• Rising interest rates have cooled the overall market, but not derailed buyer appetite entirely, especially where lifestyle and location offer long-term value.
• Semigration and lifestyle migration to the Western Cape and Garden Route remain strong, with coastal and smaller towns seeing increased buyer interest.
• Affordability pressure continues to shape purchasing decisions, with more buyers opting for sectional title or compact units over freestanding homes.

Trends to Watch

• Rental stock shortages are driving up yields in some metros, creating opportunities for savvy landlords.
• Hybrid living models combining work-from-home flexibility and security estate living are influencing buying decisions.
• Bond originators report a shift to longer bond terms and dual-income applications as households stretch to qualify.

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Way Forward

‍Buyers and investors should remain alert but not fearful. The fundamentals of location, affordability, and cash flow remain the cornerstones of sound property decisions.

• First-time buyers should lock in current prices and interest rates before further hikes.
• Investors should focus on rental markets with strong demand, low vacancy rates, and long-term value.

As economic conditions evolve, so will opportunities. Those who stay informed and adaptable will be best positioned to benefit.

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