PAM GOLDING PROPERTIES

Consistent buyer confidence underpins ongoing resilience in the residential market

There are encouraging signs of steady buyer confidence in South Africa’s residential property market, with purchasers and investors increasingly motivated to act where they see the right combination of value, quality and long-term potential. While economic conditions remain challenging, demand for well-located property is holding up, and the market is reflecting its ability to adapt.

First-time buyer participation remains particularly encouraging. Access to finance remains key, with lenders offering products that can help address some of the upfront costs associated with buying a home. According to ooba Home Loans, the proportion of first-time buyer applications for cost-inclusive loans has increased more than fivefold, from around 3% in 2021 to nearly 16% in early 2026, while approval rates for these loans are close to 90%. Average weighted lending rates are also currently around 0.75% below prime, providing meaningful relief for suitably qualified buyers.

There is further evidence of improving market momentum. FNB’s latest Property Barometer shows that average selling times have shortened to 10 weeks and one day in Q3 2026 – the fastest pace recorded since 2022.

Importantly, the market is not moving uniformly. Differences between regions and even individual neighbourhoods are becoming more pronounced, with local economic activity, migration patterns, infrastructure, lifestyle appeal, supply and relative value all influencing demand.

Against this backdrop, the recent 25-basis-point repo-rate increase is an additional consideration for households and investors, although it does not alter the broader picture of a market with underlying resilience.

Residential property remains fundamentally a medium to long-term asset. While the current environment calls for greater selectivity, it also creates opportunities for those who understand individual market fundamentals. Well-priced property in locations with enduring demand, including high-end homes in sought-after locations, continues to offer compelling prospects, reinforcing the value of taking a considered, longer-term approach to property decisions.