South African property market ends 2025 on a high

As 2025 draws to a close, the South African property market has continued to strengthen on the back of a series of interest rate cuts that began in 2024.

Price growth has solidified nationwide, benefiting property owners and sellers, with many buying opportunities still available in most regions except the Western Cape, says Jawitz.

Interest rates have stabilised at reasonable levels by South African standards, with the prime lending rate at 10.5% and most borrowers securing loans in the upper 9% range.

“There has been a firming up of price growth across the country, which has been good for property owners and for sellers. There are still buying opportunities available for buyers in almost all parts of the country, other than probably the Western Cape.”

Jawitz says this has prompted predictability, which creates market confidence even though further interest cuts are on hold.

Lower interest rates are enabling some buyers to purchase larger homes.

However, the downsizing trend continues due to security and rising maintenance costs, particularly in Gauteng.

More people are also returning from the coastal areas due to affordability.

Jawitz says that first-time buyers are re-entering the Gauteng market across various suburbs, particularly in Sandton and Fourways.

In the Western Cape, the sectional title market is most active, while the micro-unit trend continues in Cape Town, catering to young buyers and investors in the buy-to-let market.

“This is a much younger buyer, not looking to entertain, not looking for space, and the work-from-home trend is not as strong as it was,” he says.

He adds that, despite the approaching holiday season, the property market remains active as people use December to assess finances and begin property searches.

To listen to Jawitz in conversation with 702 and CapeTalk’s Africa Melane, click below: