As the property market builds momentum leading up to Q2, taking a look at Q1's results reveals a powerful comeback for South African property buyers, driven by highly competitive bank lending and a surge in first-time buyer activity. According to the latest oobarometer report from Ooba Home Loans, first-time homebuyers have reached a multi-year high, accounting for 48% of all home loan applications in Q1 2026, up from 46.5% during the same period last year. This influx of buyers is anchoring a broader market recovery, with total home loan application volumes climbing 15.9% and overall application values jumping by an impressive 30.4% compared to the market's low point at the end of 2023.
Furthermore, the total value of bonds actually granted by banks has rebounded by 36.6% from its 2024 dip to reach a two-year high, supported by a strong national bank approval rate of 84%. A notable 45.5% of applications that were initially rejected by one lender were ultimately approved by another, underscoring the high success rate of shopping around. This activity is unfolding against a backdrop of strengthening property values, where the national average purchase price increased by 4.7% year-on-year, comfortably outstripping South Africa's 2025 consumer price inflation rate of 3.2%. Regionally, the Eastern Cape led this price growth with an 11.1% spike, closely followed by Limpopo at 9.9%.
Crucially, the financial barriers to entering the market are beginning to ease as banks aggressively compete for new business. The average deposit dropped to 12.8% overall, while first-time buyers saw their average deposit requirement shrink to 8.2%, or roughly R103,842. This shift is accompanied by a massive appetite for alternative financing; 60.2% of first-time buyers applied for 100% loans requiring no down payment. Additionally, cost-inclusive home loans—which fold legal registration and transfer fees directly into the bond—have skyrocketed from less than 0.5% of first-time applications in 2016 to nearly 16% in early 2026, making homeownership more accessible than it has been in years as the industry moves deeper into the second quarter.
