As 2025 draws to a close, the South African property market continues to show strong resilience and steady growth. Following a series of interest rate cuts that began in 2024, both property buyers and sellers are seeing renewed confidence in the housing sector.
According to Herschel Jawitz, CEO of Jawitz Properties, the market has experienced robust price growth and rising demand across most regions. “More people are buying up because they can afford to pay more at these lower interest rates,” Jawitz explains.
The result has been a strengthening of the South African property landscape, as improved affordability and market stability encourage both first-time buyers and seasoned investors to make new moves.
Interest rates have remained stable by South African standards, with the prime lending rate sitting at 10.5% and many borrowers managing to secure loans in the upper 9% range. This environment has provided a much-needed boost to affordability and activity within the South African property market.
Lower Interest Rates Drive the South African Property Boom
Jawitz notes that this lower-rate climate has resulted in consistent price growth nationwide. “There has been a firming up of price growth across the country, which has been good for property owners and for sellers,” he says. “There are still buying opportunities available for buyers in almost all parts of the country, other than probably the Western Cape.”
While the Western Cape remains a more expensive market with higher entry costs, other regions — particularly Gauteng, KwaZulu-Natal, and the Eastern Cape — are seeing an influx of both new and returning buyers.
The South African property sector thrives on predictability, and the current rate environment has brought just that. Even though further interest rate cuts are unlikely in the near term, the stability achieved so far has been enough to boost confidence.
“Predictability is key to market confidence,” Jawitz explains. “Buyers and sellers are now able to plan their decisions with more certainty, which is creating a stronger sense of stability in the market.”
This newfound stability has allowed more South Africans to upgrade their homes, take advantage of improved loan conditions, or re-enter the property market after a period of hesitation during previous high-rate years.
Lower interest rates have enabled some buyers to move up the property ladder, opting for larger homes and better neighbourhoods. However, Jawitz notes that the downsizing trend remains strong — especially in Gauteng — as security concerns, maintenance costs, and lifestyle changes drive homeowners toward smaller, more manageable properties.
Another noticeable shift in the South African property market is the migration pattern. Many people who previously moved to coastal areas are now returning inland due to affordability pressures. Rising costs of living and limited employment opportunities in some coastal regions have made Gauteng attractive again, particularly for younger professionals and families.
In Gauteng, first-time buyers are making a noticeable comeback. Suburbs such as Sandton, Fourways, and parts of the East Rand are seeing increased activity as more young professionals and families enter the market.
Jawitz says, “We’re seeing strong first-time buyer activity across various Gauteng suburbs. Many of these buyers are taking advantage of lower interest rates and stable pricing.”
The return of first-time buyers is a positive sign for the South African property sector, indicating not only confidence but also a sustainable base for future growth.
While affordability challenges persist in the Western Cape, the market remains vibrant — particularly within the sectional title and micro-unit segments. Cape Town continues to attract a younger generation of buyers, many of whom prefer smaller, lock-up-and-go units suited for urban living.
Jawitz explains that this trend is driven largely by young professionals and investors in the buy-to-let market. “This is a much younger buyer, not looking to entertain, not looking for space,” he says. “The work-from-home trend is not as strong as it was, so proximity and convenience matter more than size.”
The Cape Town market remains competitive, with sectional title properties offering strong rental returns and steady demand.
Despite the approaching festive season, the South African property market remains active. Many prospective buyers use December as a time to review finances, explore listings, and prepare for purchases in the new year.
“December is not as quiet as people think,” says Jawitz. “It’s a period where buyers assess their financial situations and begin their property searches. That early preparation sets the tone for a busy start to 2026.”
As 2025 wraps up, the South African property market stands on solid ground. With interest rates at manageable levels, stable price growth, and renewed buyer confidence, the outlook for 2026 appears optimistic.
Whether it’s first-time buyers entering Gauteng, young investors targeting Cape Town, or homeowners upgrading to larger spaces, the message is clear: the South African property market is vibrant, resilient, and full of opportunity.
Source- EWN