Town of Tshwane has skilled the very best development in residential property costs amongst Gauteng’s main metro areas.
Although the metro’s common house worth stays under that of the Western Cape, it has develop into the costliest housing market within the province.
In accordance with Ooba Dwelling Loans regional knowledge, Tshwane recorded the very best annual home worth development in January and February 2025, with a ten.6% enhance. Limpopo adopted with an 8.1% rise, whereas KwaZulu-Natal noticed a 6.1% enhance.
Regardless of these notable positive aspects, the Western Cape continues to guide by way of common property costs. Although the area skilled a extra modest development of three.9%, it nonetheless holds the very best common buy worth of R2.36m — properly above the nationwide common of R1.66m.
“The Western Cape continues to profit from an inflow of ‘semigrants’, notably across the Metropolis of Cape City, the West Coast and the Backyard Route. This has led to a rising share of nationwide residential constructing plans, however demand has outpaced provide, driving worth development,” stated Ooba Dwelling Loans analysis economist Sandra Gordon.
Gordon cited a Stats SA report from earlier this month that reveals nationwide residential property costs rose by a mean of 4.9% 12 months on 12 months in November 2024 — up from a revised 4.8% in October — marking the largest development price since mid-2022.
Principal contributors to the enhance had been the Western Cape, which added 3.1 share factors to the full, and Gauteng, with 0.8 share factors.
“By late 2024, Cape City and Tshwane had been the one two metro markets the place home worth development outpaced the prevailing inflation price,” Gordon stated.
Whereas investor demand performed a small function in driving nationwide home worth development — accounting for simply 12.7% of common purposes within the first two months of 2025 — it had a a lot larger affect within the Western Cape.
In accordance with Ooba Dwelling Loans, 32% of all purposes within the province throughout January and February got here from traders.
Gordon famous that first-time homebuyer purposes have climbed from 43.3% in mid-2024 to 46% in January/February 2025, indicating a gradual however regular rise in demand.
“First-time purchaser demand has proven indicators of restoration since mid-2024, supported by easing worth pressures and preliminary rate of interest cuts.
“Nonetheless, latest financial uncertainty — pushed by the VAT hike dispute, a pause in price cuts and weak financial development within the first quarter of 2025 — has briefly slowed momentum,” she stated.
She stated that when the financial backdrop grew to become extra supportive, with decrease rates of interest and stronger development, the restoration in first-time purchaser demand is predicted to select up once more.
In the meantime, the more and more aggressive banking sector continues to offer extra help, sustaining exercise on this phase.
majavun@businesslive.co.za
