This month’s report highlights a residential property market that continues to show resilience despite ongoing global economic uncertainty. The prime lending rate remained unchanged in July, home loan approvals continued to increase and improving affordability, supported by rising household incomes, is helping to sustain buyer confidence.
WORDS & PHOTO: SUPPLIED
The report also points to a more favourable inflation outlook, with food inflation continuing to ease.
Below is a summary of the key metrics featured in the August report
- Tourists favour South Africa
- BetterBond Index of Home Loan Applications
- Average home purchase price
- Average deposit for home purchase
- Number of flats and townhouses built by province
- Average home loan value for first-time buyers by region
- Ratio of average deposits to average annual salaries
- Consumer Price Index (CPI) and Producer Price Index (PPI)
- Key residential property market metrics
Key media insights for August 2026
- The Reserve Bank kept the repo rate at 7%, leaving the prime lending rate unchanged at 10.5%.
- Overseas tourist arrivals to South Africa increased by 5.6% YoY during the first six months of 2026, despite a slowdown in global tourism.
- Home loan applications softened in July following higher deposit requirements, but the number of home loans granted increased by 4.1% YoY and by 28% since July 2024.
- First-time buyers reached a new record average home purchase price, while average house prices increased by 3% YoY in real terms.
- Deposit requirements increased during July but remained below the peaks recorded during the interest rate hiking cycle between 2022 and 2024.
- Gauteng and the Western Cape continue to dominate the development of new flats and townhouses, while Mpumalanga recorded strong growth in new compact housing.
- Average home loan values for first-time buyers increased strongly across most regions, led by the Eastern Cape and Western Cape.
- The ratio of average deposits to annual salaries remains well below its 2022 peak, reflecting improved affordability over the past two years.
- Food inflation has continued to decline, supporting a more favourable inflation outlook.
- Rising household incomes, resilient buyer demand and steady home loan approvals continue to support South Africa’s residential property market.
Overall, this month’s data shows that South Africa’s residential property market remains resilient. While higher deposit requirements temporarily affected home loan applications, improving affordability, stable interest rates and continued demand for home ownership provide encouraging signs for the months ahead.
Access the full August 2026 BetterBond Property Brief here.
Top photo: Stephan Potgieter, CEO of BetterHome Group Mortgage Origination and BetterBond.
