The South African residential property market is showing early signs of renewed momentum in 2025. While overall transaction volumes remain relatively flat compared to last year, growth in the average value of transactions is driving a healthier market outlook.

Key Market Trends
Recent data from national registrations (excluding properties under R250,000) shows volume growth of just over 6% and a notable 13% increase in total value. This suggests a shift toward higher-value property purchases and a continued recovery in buyer confidence.

Competitive Lending Environment
One of the main drivers behind this trend is heightened competition among banks. Financial institutions are aggressively pursuing market share, offering more flexible lending terms and adjusting loan-to-value (LTV) policies. In many cases, these changes have reduced deposit requirements and allowed more buyers to access financing, indirectly contributing to rising property prices.

Interest Rate Relief and Affordability
A gradual decline in interest rates has also begun to improve affordability, making it easier for buyers to qualify for home loans and encouraging more market activity. This easing cycle is expected to support transactional growth throughout the remainder of the year.

Market Outlook
While the market is not experiencing explosive growth, the outlook is notably better than in 2024. If current patterns hold—driven by accessible credit, rising home values, and moderate buyer demand—total market growth could reach as high as 10% by year-end, well above earlier expectations.

With the most recent SARB interest rate decrease, now is the time to be in touch with MultiNET Home Loans, we are committed to making homeownership a reality for our partners and their clients.

For more information visit www.multinet.co.za