A new quarterly report has revealed the extent to which overpricing is distorting South Africa’s residential property market, with nearly 9 out of 10 estate agents saying they frequently encounter inflated listing prices.

The inaugural MyProperty Sentiment Index, launched by proptech company Entegral, surveyed more than 200 estate agents across the country. The findings show a clear trend: overpricing is not only widespread but is eroding trust, delaying sales, and damaging the industry’s reputation.

Agents bemoan losing mandates to competitors who inflate valuations to secure listings. Yet in most cases, those homes return to the market later at reduced prices.

“Overpricing damages trust, wastes time, and hurts the reputation of the industry,” said Adriaan Grové, CEO and Founder of Entegral and MyProperty. “Agents are caught between winning mandates and maintaining professional integrity. The result is a market that’s less efficient, and consumers who are often disappointed.”

According to the Index, 88% of estate agents report encountering overpriced homes either “often” or “always”.

The mid-market and luxury segments are most affected, with 46% of agents identifying mid-market homes as the worst culprits for inflated pricing.

Less experienced agents are more likely to accept unrealistic mandates, while more seasoned professionals tend to walk away — even if it costs them a listing.

Nearly 90% of mid-career agents say they frequently lose mandates to agents who agree to unrealistic prices, only for those homes to reappear months later at reduced prices.

The report also highlights a psychological factor at play: the anchoring effect. Overpriced listings create false benchmarks, making reasonably priced properties seem like bargains — distorting market perception and buyer expectations.

“Sellers often rely on online listings to gauge value, without tracking reductions or time on market,” Grové said. “Agents who educate clients and refuse to fuel inflated expectations are essential to rebuilding trust in the sector.”

The MyProperty Sentiment Index will be released quarterly, aiming to provide actionable insights into industry challenges and strengthen transparency across the South African real estate market.