South African Property Market Shows Recovery and Growth

The South African property market has entered a markedly stronger phase, showing clear signs of renewed confidence, rising activity, and sustained growth compared to the same period last year. Across the board, key indicators point to a market that is not only stable but increasingly vibrant, setting a positive tone for the remainder of 2025 and laying solid foundations for an exciting 2026.

Looking Ahead

All indicators suggest that the South African property market is not only recovering but growing again. Bank commitments around increased lending appetite with a intense focus on the First Time Home Buyer and over 100% lending offers by all banks– supporting interest in properties between R1.1M and R1.8M with the age of these buyers around 36 years. The spectrum buyers have increased, so has listings. This results in stronger sales, higher bonding success rates, and notable value growth—especially in coastal and estate properties—are all positive signals. These trends sow good seeds for a strong and prosperous 2026, with continued activity, confidence, and opportunity across the property industry as a whole.

Increased activity

One of the most encouraging signs is the 16.8% increase in properties listed, reflecting growing confidence among sellers who believe now is the right time to bring their properties to market. This increase in supply has been met with even stronger demand, as evidenced by a 14.2% year-on-year increase in properties sold. Buyers are clearly active, decisive, and willing to transact, reinforcing the view that the market is buoyant rather than stagnant.

Financing activity further supports this momentum. There has been a 12.9% year-on-year increase in properties successfully bonded, highlighting improved affordability, greater lending confidence from financial institutions, and buyers’ readiness to commit to long-term investments. Together, these metrics paint a picture of a market that is functioning efficiently and with healthy depth.

Regional Hotspots Driving Activity

Activity is widespread but particularly pronounced in several key regions. The Western Cape continues to be a standout performer, with the Atlantic Seaboard remaining exceptionally active year after year. Demand here shows no signs of slowing, driven by an international market and lifestyle appeal, and limited supply. Known as a wind free zone and with massive international demand, Clifton remains the top selling price in SA per m2 at R170 000 per m2.

Beyond the metro hubs, the West Coast is experiencing strong growth, while central regions such as Bloemfontein, Kimberley and the broader Free State are seeing renewed vibrancy year-on year. The Eastern Cape, St Francis and Jeffreys Bay has shown an increase of over 24% in property value growth from 2024 and the surrounding coastal areas, are also enjoying heightened activity, supported by affordability and continued semigration trends.

In Gauteng, certain areas are exceptionally busy, with strong transactional volumes showing a 17% increase in overall activity, amongst the areas are properties on the Vaal river itself and the bigger VaalTriangle, Vereeniging, Parys, and Potchefstroom, are all showing seller and buyer commitments. KwaZulu-Natal is following closely behind, maintaining solid momentum and consistent sales activity. Lifestyle Estates have mushroomed between Umhlanga and Ballito with the King Shaka airport only within 30 minutes from both North Coast towns with Umhlanga reaching the highest selling price sold per m2 in an area outside Cape Town, in January at R158 000 per m2.

Estate Living Leads Value Growth

In terms of value appreciation, coastal properties—particularly those within secure lifestyle and security estates—are leading the market. Premium estates such as Clara Anna Fontein in Cape Town have recorded remarkable year-on-year value growth of over 28%, reflecting strong demand for secure, lifestyle-oriented living. Lifestyle Estates in the highly sought after areas has seen impressive growth of around 12%, while certain areas along the Garden Route have experienced valuation increases of over 18% year on year.

These gains highlight a clear buyer preference for well-managed estates, coastal living, and areas offering a blend of security, amenities, and lifestyle appeal.

Overall there is optimism in the property industry, supported by activity, property value growth and increased appetite to lend- all boing well for a great year ahead.

Sources:

Lightstone
WinDeed

Yours in Property.