🌍 Economic Overview – April 2025
South Africa’s economy is showing signs of cautious optimism. Inflation is expected to settle around 3.6%, which is a positive shift, but the South African Reserve Bank has chosen to keep the repo rate steady at 7.5% due to global uncertainty and domestic political concerns. So, while the broader economy isn’t booming, it’s relatively stable.
🏠 Property Market Snapshot
- Interest rates are more favourable for buyers right now. The prime lending rate has dropped to 11.25%, leading to a notable 22.6% increase in home loan applications compared to last year.
- The Western Cape continues to lead in terms of property demand and price growth, driven by lifestyle appeal and limited stock.
- Areas like Gauteng and KwaZulu-Natal are beginning to recover, with signs of increased activity and interest.
💰 What's Driving the Market
- Mid-range properties (R1 million–R1.2 million) are performing well, with strong demand from middle-income buyers.
- First-time buyers are entering the market in greater numbers, thanks to more competitive home loan offerings and relaxed deposit requirements from banks.
- There's also a noticeable increase in expat and foreign buyer interest, partly because the rand remains weak, making South African property attractive to overseas investors.
🌱 Lifestyle Moves & Semigration
Semigration — where people move between provinces for lifestyle or work — is still very much a trend. The Western Cape remains a top destination, though rising property prices are starting to cool demand slightly. Other coastal regions and smaller towns are starting to benefit from this shift,, too.
✅ In Summary
April 2025 brings a stable, slightly upbeat outlook for South Africa’s property sector. Lower interest rates are helping unlock buying potential, particularly for first-time and mid-range buyers. While the broader economy still faces headwinds, real estate — especially in high-demand areas, is showing resilience and potential for growth.
