FNB Senior Economist Siphamandla Mkhwanazi expands on the FNB Estate Agents Survey Results-2Q25. For a detailed summary of the latest survey see here.
WORDS: SUPPLIED :: PHOTO: PEXELS
The spokesperson offers some highlight extracts:
The second quarter of 2025 saw a slight cooling in the South African residential property market’s activity and sentiment compared to the previous quarter. While the affordable housing segment continues to show resilience, overall momentum has softened, influenced by seasonal factors and heightened uncertainty.
Regional dynamics presented a mixed picture, with some areas seeing improved activity despite declining sentiment, and vice versa.
Here is a heatmap:
Summary of results: 2Q25 [1Q25]
| Price Segment | Activity | Sentiment* | Time to sell (weeks.days) | Commentary |
| <R750k | 6.2 [6.6] | 72% [58%] | 14.0 [11.1] | Despite a drop in activity and longer selling times, sentiment surged—likely driven by rate cuts and growing first-time buyer demand. |
| R750k–R1.6m | 5.8 [6.2] | 45% [59%] | 12.5 [12.4] | Significant decline in sentiment and activity, suggesting affordability pressures and cautious buyer behavior in this segment. |
| R1.6m–R2.6m | 5.9 [6.0] | 70% [84%] | 10.0 [10.5] | Stable activity with improved selling times, though sentiment softened—possibly due to price sensitivity and economic uncertainty. |
| R2.6m–R3.6m | 6.1 [6.3] | 67% [75%] | 11.2 [11.0] | Minor declines in activity and sentiment, but selling times remained steady, indicating balanced market conditions. |
| >R3.6m | 5.7 [5.9] | 62% [66%] | 12.3 [16.1] | Slight drop in activity and sentiment, but improved selling times suggest selective demand in the upper-end market. |
| Region | ||||
| Gauteng | 5.7 [6.1] | 66% [75%] | 12.6 [14.1] | Slight cooling in activity and sentiment, with a longer selling time. |
| Western Cape | 5.9 [7.2] | 67% [68%] | 9.2 [9.5] | Stable sentiment despite the drop in activity. |
| KwaZulu-Natal | 6.3 [5.9] | 47% [49%] | 11.5 [10.1] | Strong rebound in activity, though sentiment dipped slightly. |
| Eastern Cape | 6.1 [5.9] | 56% [66%] | 8.6 [16.4] | Activity improved, but sentiment dropped significantly. |
*Note: % of agents satisfied with prevailing market conditions.
Overall, recent interest rate cuts have boosted optimism in the affordable housing segment, while heightened global and domestic uncertainty likely contributed to the softening in sentiment and the cautious outlook observed in the traditional market.
Encouragingly, some of this uncertainty has subsequently eased, offering a more stable backdrop for market participants. Looking ahead, continued rate relief is expected to support buying activity, especially in the low- to mid-market segments. However, unlocking sustained momentum in the higher-priced tiers will require accelerated economic reforms and greater political clarity to restore confidence and drive broader market recovery.
Read ore about the FNB Estate Agents Survey Results-2Q25 here.
Siphamandla Mkhwanazi, FNB Senior Economist
