BetterBond have released their October 2025 BetterBond Property Brief. This month’s data offers a snapshot of South Africa’s evolving home loan and residential property market as confidence strengthens following five consecutive interest rate cuts.
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View the BetterBond October Property Brief here.
Summary of the key metrics featured in the report
- Economic compass
- BetterBond index of home loan applications
- Average home purchase price
- Average deposit for home purchase
- Regional composition of home loans granted
- Value of building plans passed by province
- Year-on-year increase in average home purchase price changes by income group
- Average homebuyer incomes
- Residential property and construction input price indices
Key insights for October 2025
- Rate cuts supporting demand:
Five successive repo-rate cuts earlier in 2025 have helped lift home loan demand and contributed to improved application volumes. - Home loan applications rebound:
The BetterBond index rose 11.6% quarter-on-quarter and 14.6% year-on-year in Q3 2025 – the strongest level since early 2022; applications are 26% above the Q4 2023 low but still 15% below Q1 2022. - Exports to Europe are strong:
Exports of high value-added goods to Europe (excluding metals and minerals) totalled R233 billion between January and August 2025 – up 24% year-on-year – helping offset some US trade headwinds after the expiry of AGOA. - Rand strength aids stability:
The rand has strengthened by more than 9% against the US dollar so far in 2025, supporting lower inflationary pressure and improved macro stability. - Tourism recovery:
Overseas tourist arrivals reached 1.3 million between January and July 2025 – 83,000 more than in 2024 – with July arrivals up 20% year-on-year and 29% month-on-month. This supports demand for short-stay accommodation. - Prices: record highs but modest growth:
The average home purchase price reached a record R1.6 million (all buyers), while FTBs averaged roughly R1.3 million; year-on-year price growth remains modest (single-digit percentages) and below broader CPI in some segments, keeping the market biased toward buyers. - Deposits easing:
Average deposits have eased from 2024 peaks – down around 12% for all buyers and about 15% for FTBs from their highs – with year-on-year declines also recorded in Q3. - Regional activity:
Gauteng leads in loan volumes (Johannesburg’s South-Eastern suburbs, Greater Pretoria and Johannesburg’s North-Western suburbs rank highly). For the 12 months to September, the total number of home loans granted rose about 17% year-on-year and eight of nine regions saw increases. - Building plans and construction:
The value of residential building plans passed Jan – July 2025 totalled roughly R26 billion, with the Western Cape accounting for 38% of that value. The Afrimat Construction Index shows a modest improvement from its pandemic low but the longer-term trend remains subdued.
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