More balance in the market, house prices strengthening
Indications are that the property market has turned the corner, with the banks signalling more optimism. There is a tangible sense of improved sentiment, and a more positive outlook. For the first time in a while, we are buoyed by favourable tailwinds as a sector.
The market has shifted from a period of mostly supply‑led price resilience towards a more balance phase with gradually improving broad‑based demand, and an expectation of improved price growth. While the Cape has remained the standout performer, many areas across the country are now experiencing higher demand and sales growth.
This recovery is driven by the easing monetary policy. With lower interest rates, sales volumes have started increasing, though we believe further rate cuts remain vital to fully propel market growth. That said, affordability conditions have improved leading to an increase of some 9% YoY in home loans, according to ooba.
Mortgage loan conditions remain favourable. As the banks continue to compete heavily, we are seeing faster approval rates, lower deposit requirements, and rate concessions for qualifying buyers, all of which are highly supportive of the market. The value of mortgage loans granted increased by a notable 17% (according to ooba).
House price growth throughout 2025 outpaced consumer inflation. As the housing market moves into a more sustainable expansion phase this year, growth is expected to improve further. While we continue to see the Cape as the strongest market, likely sustaining its trend of strong price appreciation, other regions are also strengthening.
The middle to upper sector of the market remains active, prices have stabilised, and we could start seeing prices rising towards the latter part of the year on the back of stronger demand. While the upper end of the Gauteng market above R8m to R10m is seeing higher turnover, price appreciation continues to lag, largely weighed down by service delivery issues.
Collectively, we see the market as entering a positive cycle, and with the tailwinds seemingly behind us, we anticipate that both the economy and the property market will continue to improve as the year unfolds.
Samuel Seeff
Chairman of the Seeff Property Group
