While 2025 is shaping up to be a more stable and forward-looking year for the property market, it’s essential to acknowledge what many sellers already know: this is not a seller’s market in the traditional sense. There is more stock than demand in many areas, sales cycles are longer, and price reductions are more common.
However, for sellers who understand the market and are willing to price strategically, the current environment still offers a compelling opportunity, particularly as affordability improves, bond approvals rise, and regions like the Eastern and Western Cape show sustained buyer activity. Selling successfully in 2025 is about being better prepared, not just better positioned.
A stabilising economy and improving affordability
At the end of May, the South African Reserve Bank cut the repo rate to 7.25%. The SARB noted that inflation is showing signs of slowing (but remains concerned about a possible “stagflation” scenario).
The lower prime lending rate (down from 11% to 10.75% as of 29 May 2025), combined with declining inflationary pressures, is restoring buyer confidence. As prospective homeowners regain their purchasing power, demand is expected to continue rising through the second half of the year.
According to BetterBond’s April 2025 report, home loan applications rose 9.3% year-on-year in Q1 2025, while the May 2025 report confirms a continued rise of 2.2% year-on-year to April 2025. BetterBond notes that there has been an easing of deposit requirements (notably, their data shows that first-time buyer deposits have dropped nearly 9%, averaging around R175,000), and the national bond approval rate reached 77.5%, led by the Eastern Cape at 83.9%.
At the same time, policy adjustments are supporting affordability. Transfer duty exemptions have been raised to include all properties priced under R1.21 million, reducing upfront costs for many first-time buyers and easing entry into the market. These buyers are a significant force, and their re-entry at scale is positive news for sellers at all levels. According to the latest Absa Homeowner Sentiment Index, “First-time buyers continue to drive market activity with more than half of the total applicants coming from this segment.”
Market recovery confirmed by independent data
FNB’s House Price Index (published 13 May 2025) shows house price growth strengthening to 2.2% year on year in April, up from 2.0% in March. This marks the fastest annual growth rate in nearly two years and is encouraging for sellers considering listing their properties. Although the recovery remains gradual, the trend is positive, offering an encouraging environment for sellers. The year-to-date HPI average of 1.8% suggests an upside risk to FNB’s full-year projection of 1.9%, and FNB is now projecting house price growth could approach the 3% mark by 2026.
Momentum and market health should strengthen further if the SARB continues its rate-cut cycle, boosting buyer reach.
Increasing buyer activity and consumer confidence
While buyer activity is showing early signs of recovery, volumes remain approximately 16% below pre-COVID levels, and the balance of power remains tilted toward buyers. According to FNB, the average time to sell a property has risen to 12 weeks and 1 day, up from 11 weeks in late 2024. In many areas, particularly where stock levels are high, homes are sitting on the market even longer, and sellers are having to adjust their prices more frequently to secure offers.
As FNB puts it, “sentiment is ahead of the numbers”, meaning that while confidence is returning, actual deal flow remains sluggish. Sellers need to be strategic, realistic and responsive to market signals in order to achieve good outcomes.
Regional hot spots creating additional opportunities
The Eastern Cape recently emerged as a national front-runner, with the highest home loan approval rate in the country at 83.9%. This strong financial backing signals healthy demand and improved lender confidence in the province (a key indicator for prospective sellers).
The Western Cape continues to set the pace in terms of activity and sentiment. The province has seen a notable 24% year-on-year rise in residential building completions, pointing to sustained appetite and supply-side response. Suburbs like Clifton, Bishopscourt and Constantia remain in high demand, buoyed by lifestyle-led semigration and continued investment from both local and foreign buyers.
Gauteng, by contrast, is showing a more moderate recovery. While demand remains steady in well-established suburbs, the province saw a 30% decline in new completions year-on-year, reflecting ongoing delivery and confidence constraints in some areas. That said, targeted infrastructure investment and municipal reforms are laying the groundwork for future growth.
Together, these dynamics paint a nuanced but optimistic picture:
• Eastern Cape – Financially supportive conditions and buyer confidence
• Western Cape – High demand and strong development pipeline
• Gauteng – Recovery in motion, with upside potential in key nodes
For sellers in these high-performing provinces, 2025 offers a well-timed opportunity. Regional demand is being supported by financing, infrastructure and sentiment — three conditions that rarely align as clearly as they do now.
External factors reinforcing urgency
Beyond South Africa’s borders, global trends are also influencing our local property dynamics. International investors are increasingly viewing emerging markets like South Africa as attractive, given uncertainties in the developed world. A weaker rand has made South African real estate particularly appealing to foreign buyers, especially in tourist-friendly regions.
Meanwhile, government spending plans outlined in the 2025 Budget Speech are set to inject over R1.03 trillion into infrastructure maintenance and development over the next three years. This includes R156.3 billion specifically for water and sanitation improvements, and R402 billion for road infrastructure. This type of investment historically lifts property values over time – a trend that sellers could benefit from by acting now before prices rise further and competition intensifies.
What sellers should consider
If you’re thinking of selling in 2025, preparation will be key to maximising the opportunity. Here are my top recommendations:
- Price realistically but optimistically: Buyers are active, but still cautious. Set your asking price carefully to attract strong interest and competitive offers.
- Stage your home effectively: Presentation matters more than ever. Homes that show well sell faster and at better prices.
- Work with a trusted advisor: Choose a property professional with a deep understanding of the current market. An expert can help you navigate offers and negotiate the best deal.
- Prepare for a quick sale: In popular areas and price bands, properties are moving faster. Be ready for prompt showings and swift decision-making.
2025 is not a time for speculative pricing or passive listings, but it is a time for smart, proactive selling. The market is shifting in favour of well-priced, well-presented homes, and sellers who work closely with informed property professionals stand to benefit.