Staff Writer - Property Review

Knysna property prices vs crumbling infrastructure and water woes

Knysna’s property market is defying the town’s worsening infrastructure collapse, with property data showing continued demand for high-value homes and lifestyle estates – despite a backdrop of sewage spills, water shortages and political instability.

The Garden Route town, once celebrated as the “Jewel of the Garden Route,” has faced years of mismanagement, chronic infrastructure breakdowns and mounting service-delivery failures.

Pothole-scarred roads, repeated sewage spills into the estuary, and prolonged water interruptions have become part of daily life for residents and businesses.

The Western Cape Government placed Knysna Municipality under administration in September after an engineering assessment revealed widespread failure across its 67 sewer pump stations – of which only 11 were fully functional.

Compounding these failures are severe water shortages. Knysna was this week declared a water-stressed area, with dam levels at Akkerkloof and Glebe worryingly low. Level-4 water restrictions are now in force as the town heads into its busy summer season.

Despite this, the town’s property market continues to display unusual resilience.

According to Seeff Property Group, the fundamentals of Knysna’s residential sector remain strong, supported by consistent lifestyle-driven demand and a steady return of tourists.

The estuary alone generates an estimated R1-billion in tourism revenue, a crucial driver of the local hospitality and real estate markets.

Data from Lightstone paints Knysna as one of South Africa’s most property-dense towns, with 13 200 registered properties and an unusually large share of premium-priced homes.

Of the properties valued above R500 000, nearly 30% are worth more than R5 million, many housed in prestigious estates such as Thesen Island, Pezula Private Estate, Pezula Golf Estate, and Belvidere Estate, as well as high-end neighbourhoods including Leisure Isle, The Heads and Noetzie.

The town’s average sales price has climbed steadily, rising from R2.3 million in 2019 to R3.9 million in 2025, with properties continuing to sell relatively easily and often close to their asking prices.

Neighbouring Plettenberg Bay still leads in ultra-luxury concentrations – 75% of its properties are valued above R3 million, compared with Knysna’s 56%.

Yet Knysna’s larger property base (nearly triple the registered properties of Plett) reflects deep demand from semigrants, retirees, and investors seeking secure estate living.

The Garden Route region remains a magnet for wealthy buyers, home to 3,200 millionaires and five centi-millionaires, many of whom have relocated permanently in recent years.

This demographic shift continues to support Knysna’s property values – even as the town faces rising governance and infrastructure risks.

For now, Knysna stands at a crossroads: a sought-after lifestyle destination grappling with a severe service-delivery crisis.

While political infighting and infrastructure failures threaten its long-term stability, the town’s natural beauty, strong leisure economy, and entrenched demand for high-quality estate living continue to underpin a surprisingly resilient property market.

Macro-economic factors bode well for South Africa’s property market

South Africa’s residential property market is showing renewed momentum, with first-time buyers (FTBs) increasingly active as interest rate cuts, lower fuel prices and subdued inflation improve affordability.

This is according to Dr Andrew Golding, chief executive of the Pam Golding Property Group, who said the rebound is evident across key demand indicators and regional trends.

Golding’s comments come as the latest Gross Domestic Product (GDP) results released by Statistics South Africa (Stats SA) showed that the economy grew by 0.5% in the third quarter of 2025.

“The growth marks the third consecutive quarter of growth following the 0.9% expansion in the second quarter. The continued improvement reflects the resilience of the South African economy and the impact of ongoing structural reforms to support inclusive and sustained growth,” the Government Communication and Information System (GCIS) said.

The trade, catering and accommodation sector grew by 1.0%, supported by stronger retail, wholesale, tourism and food services activity, while the mining sector expanded by 2.3%, driven by platinum group metals, manganese ore and coal.

Growth was also recorded in finance, real estate and business services (up 0.3%), general government services (up 0.7%) and manufacturing (up 0.3%).

Lower inflation and easing interest rates have created a more favourable environment for younger buyers to re-enter the market, said Golding.

FTB demand has grown steadily through 2025, rising to 47.8% of all applications received by ooba Home Loans in October and averaging 47% for the year to date.

Three of the nine regions monitored by ooba recorded increases in FTB applications in October. Johannesburg saw a notable surge, with FTBs accounting for 51.7% of all applications, while the Free State (60.3%) and Mpumalanga (55.8%) continued to lead year-to-date demand.

Growth in the average FTB purchase price has been strongest in Tshwane (+12.4%) and the Eastern Cape (+11.5%).

According to Golding, bank lending conditions remain broadly favourable:

The average national concession relative to prime narrowed to -0.63% in October, with the Western Cape (-0.89%) and Eastern Cape (-0.76%) offering the most competitive pricing.
Approval rates have risen in recent months, averaging 84.2% over the past quarter. Pre-qualified applicants enjoy a far higher approval rate (91.1%) than those without (80.9%).
Demand for 100% loans climbed to 55.6% in Q3 2025, while applications for >100% loans reached a record high of 6.6%.
The average national deposit eased to 14% in October, with FTB deposits falling to 9.4% (6-month average).

Pam Golding noted that investment buying ticked up in October to 13.2% of total applications, citing ooba data. The Western Cape remained the most active investment market at 35.8%, while Tshwane held steady at 13%.

The post-pandemic dip reflects increased semigration to smaller towns and peripheral suburbs, where freehold homes are more attainable.

Semigration hotspots remain centred on the Western Cape, including the Garden Route, Stellenbosch, Paarl, Franschhoek and the Whale Coast.

According to FNB’s Q3 2025 Estate Agent Survey: emigration-related sales remain low at 5%, below the long-term average of 8%.

Golding also noted increasing interest in global property-linked residency programmes as several EU countries tighten citizenship routes.

Markets such as Mauritius and Dubai continue to attract South Africans seeking lifestyle, tax and investment benefits. Pam Golding Properties said it will open its Dubai office in January 2026, in partnership with wealth advisory firm SVN Capital.

Golding said the positive effects of rate cuts, easing inflation and falling fuel prices are filtering through to the housing market, boosting activity and price growth.

He expects further interest rate relief in the first half of 2026, stronger local economic activity, and continued improvement in household finances, provided global oil prices and the rand remain stable.

South Africa’s removal from the FATF grey list in October 2025 has already lifted foreign investor confidence, particularly in the high-end market.

However, he cautioned that a sustained recovery will depend on broader economic improvements, policy stability and reliable municipal service delivery. The 2026 local elections may influence sentiment, especially in Gauteng, where service challenges have weighed on the housing market.

Taken together, the outlook for 2026 is stable and encouraging, Golding concluded. With interest rates declining and economic indicators improving, the property market is well-positioned for a more positive year ahead.

A series of interest rate cuts has brought much-needed relief to consumers, stimulating buyer confidence, according to Adrian Goslett, regional director and CEO of REMAX.

He said there is space for activity within the housing market to strengthen further should interest rates continue to drop and the overall state of our economic growth reflect greater recovery.

How the world’s richest people are making their money in 2025

Global billionaire wealth reached an all-time high in 2025, boosted by entrepreneurial growth and the largest multi-generational inheritance wave yet measured, according to UBS’s 11th Billionaire Ambitions Report.

The report, based on a survey of the bank’s billionaire clients worldwide, outlines the forces reshaping global wealth creation and the growing influence of heirs in some of the world’s wealthiest families.

“Our report shows how the rise of a new generation of wealth creators and inheritors is reshaping the global landscape,” said Benjamin Cavalli, head of Strategic Clients & Global Connectivity at UBS Global Wealth Management and co-head EMEA OneUBS.

“As families become more international and the great wealth transfer accelerates, the focus is shifting from simply preserving wealth to empowering the next generation to succeed independently and responsibly. This is influencing not only succession planning but also philanthropic priorities and long-term investment decisions.”

Self-made billionaires continued to drive global wealth creation. In 2025, 196 entrepreneurs added $386.5 billion to their combined fortunes, pushing global billionaire wealth to a record $15.8 trillion.

That marks the second-strongest annual increase in the report’s history.

The number of billionaires rose 8.8% to nearly 3,000.

Unlike the asset-driven jumps seen in 2021, most new wealth stemmed from business formation and expansion across sectors such as marketing software, genetics, LNG and large-scale infrastructure.

The United States and the Asia-Pacific region showed the strongest momentum.

Technology billionaires recorded a 23.8% gain in wealth, while consumer and retail growth slowed to 5.3% amid weaker performance in Europe’s luxury segment, which continued to lose market share to Chinese brands.

Despite this, consumer and retail remain the largest sector at $3.1 trillion.

Industrial wealth grew fastest, rising 27.1% to $1.7 trillion, with more than a quarter coming from new entrants. Financial services wealth climbed 17% to $2.3 trillion, helped by strong markets and a rebound in cryptocurrency.

Self-made billionaires accounted for 80% of sector wealth.

Inheritance reached a record level in 2025. Ninety-one heirs – 64 men and 27 women – received $297.8 billion, up 36% from 2024 even though fewer people inherited overall.

Globally, the number of multigenerational billionaire families continued to rise. About 860 such families now control $4.7 trillion, up from 805 with $4.2 trillion last year.

The number of second-generation billionaires rose 4.6%, third-generation by 12.3%, and fourth-generation and beyond by 10%.

Women’s wealth also continued to grow. Average female billionaire wealth increased 8.4% to $5.2 billion – more than double the rate of male peers.

Women now account for 374 billionaires, compared with 2,545 men.

The report notes increasing mobility among the world’s wealthiest families. Thirty-six percent of respondents said they had relocated at least once, and 9% were considering it.

Quality of life (36%), geopolitical concerns (36%) and tax efficiency (35%) ranked highest among reasons for moving.

Generational change is also influencing how families operate. More than 80% of billionaires with children said they want their heirs to succeed independently rather than rely on inherited wealth.

Two-thirds hope the next generation will pursue their own interests, and more than half want them to use their wealth for positive social impact.

While 43% still hope children will continue the family business or expand its legacy, many believe younger generations will place greater emphasis on technology, innovation, lifestyle priorities and impact investing.

The top concerns for the next 12 months are tariffs (66%), major geopolitical conflict (63%) and policy uncertainty (59%).

The Great Wealth Transfer is expected to intensify in the coming decades. UBS estimates that billionaires will transfer $6.9 trillion by 2040, with $5.9 trillion passing directly or indirectly to children.

The survey underpinning the report was conducted online among 87 UBS billionaire clients booked in Switzerland, Europe (excluding Switzerland), Singapore, Hong Kong SAR and the United States between 10 July and 25 September 2025.

Why South Africa’s property market is set for strong 2026

South Africa’s housing market is closing 2025 on a stronger footing as interest-rate cuts, a new lower inflation target and improvements in the country’s global financial standing boost confidence and lift activity across key regions.

This is according to Dr Andrew Golding, chief executive of the Pam Golding Property group.

November’s rate cut – with further reductions expected by mid-2026 – has combined with the Reserve Bank’s new 3% inflation target, South Africa’s removal from the FATF grey list and S&P’s first credit rating upgrade in two decades to create markedly better conditions for buyers and lenders.

Dr Golding noted that the lower inflation target allows the Reserve Bank to anchor expectations more firmly and potentially deliver additional rate cuts that could total 75bps.

This will reduce home loan costs, stimulate demand and enhance banks’ willingness to lend, he said.

The improving macro-environment is beginning to filter through to residential markets. In parts of Johannesburg, agents are reporting stock shortages for the first time in several years.

Nationally, confidence is also rising on the back of more active lending conditions and stable inflation, he said.

Cape Town remains the standout performer, with sustained demand and an intensifying shortage of available homes despite ongoing development, Golding said.

The Western Cape accounted for 44.3% of all building plans passed so far this year, well ahead of Gauteng’s 27.6%, according to Stats SA.

The national recovery in prices is now evident across all three major regional markets. The Western Cape continues to lead, but the upturn has broadened across all provinces.

Although Limpopo accounts for just 1.3% of national sales by value, the province has recorded some of the fastest price gains in 2025, supported by improving demand in higher-value segments, particularly lifestyle estates and game-farm properties.

According to the Pam Golding Residential Property Index, the top-end market continues to show the strongest price inflation for the fourth consecutive year.

Homes priced above R3 million have recorded average HPI growth of 4.96% year-to-date (January–October), compared with 2.31% for homes under R1 million.

South Africa’s luxury sector is performing well across several regions, driven by returning expats, easing emigration pressures and renewed demand from affluent buyers relocating from inland provinces to coastal metros.

The Western Cape remains the focal point, but Gauteng’s upper-end market is also benefiting from increased interest from African buyers.

Record prices are no longer exceptional: properties above R50 million, and in some cases exceeding R100 million, have become more common, particularly in Cape Town’s Atlantic Seaboard, City Bowl, Southern Suburbs and parts of the Cape Winelands, said Golding.

Buyers from the UK, Germany, Zimbabwe, the US, the Netherlands, Switzerland, China, Mozambique, Congo and France remain active across multiple price bands.

He said that semigration into the Western Cape continues but at a slower pace than in previous years as affordability constraints and congestion rise.

Nonetheless, demand remains well above supply across the Cape Metro, the Boland and the Overberg, where some homes receive multiple offers and sell above asking price.

In estates such as Val de Vie, Boschenmeer, Fernkloof and Newinbosch, demand continues to exceed available stock.

The property expert said that a gradual “reverse semigration” trend is emerging as job opportunities and affordability draw people back to Gauteng. Improved confidence following interest-rate cuts has lifted activity across Johannesburg, particularly in the R1 million–R3 million segment.

An increase in lifestyle and security-oriented buying is also shaping demand, he said.

The KwaZulu-Natal North Coast continues to record strong activity, especially ahead of the Club Med Tinley opening in 2026.

The recent launch of Beachwood Coastal Estate set a new provincial benchmark, achieving more than R10,000 per square metre and generating R634 million in sales in two days.

Demand for properties in Zimbali, Simbithi and Seaton remains firm, including in the R10 million-plus category, said Golding.

As the Western Cape becomes more expensive, buyers are turning to the Eastern Cape and to smaller coastal towns such as George and Knysna, where relative affordability and lifestyle advantages remain strong.

The reduction in fully remote jobs and return-to-office policies from major employers such as Vodacom and Nedbank are drawing skilled workers back to Johannesburg and Pretoria, bolstering demand in suburbs close to economic hubs, the property expert said.

Estate living drives property values in South Africa’s northernmost province

Limpopo’s residential property market is showing some of the strongest growth in South Africa, with sales in the higher price brackets increasing steadily over the past five years.

What was once a region known mainly for holiday farms and small towns is now attracting young families, entrepreneurs and remote workers looking for more space, better value and access to the province’s natural attractions and game reserves.

This is according to Lightstone, a provider of residential property data and information, which noted that while Limpopo accounts for 10% of the country’s adult population, it has fewer higher-income households than other provinces.

Only 5% of households fall into the R13 000 – R68 000 income band, and just 2% earn more than R68 000 per month.

Even so, the province’s economy – driven by mining, agriculture and tourism – continues to pull people into the region.

Telemetry data shows that vehicle volumes in December rise 33% above normal levels as domestic travellers visit friends, family and major attractions such as the Kruger National Park, which receives more than 1.5 million visitors a year.

New data from Lightstone shows a marked shift in Limpopo’s residential market. In 2020, only 15% of homes selling for more than R250 000 achieved prices above R1.5 million.

By 2025, this share had jumped to one-third of all such sales. Although Limpopo still trails the national average, its rate of growth has been faster than the country overall.

Property professionals confirm that demand for homes around R3 million and above has increased sharply, supported by several factors:

Price inflation: Limpopo currently records the highest property price inflation in South Africa. Homes that sold for R800 000 to R1 million a few years ago are now regularly exceeding R1.5 million.

Lifestyle demand: Holiday, lifestyle and retirement buyers are driving interest in areas such as Hoedspruit and wildlife estates across the province.

Foreign investment: International buyers are purchasing game farms, lodges and high-value properties.

Infrastructure improvements: Projects such as the proposed Limpopo–Gauteng high-speed rail link could further strengthen confidence.

Limited supply: A shortage of well-located, higher-end homes in estates and secure developments is putting upward pressure on prices.

Rental growth: A stronger rental market, with increases of 10–12% in some quarters, is drawing buy-to-let investors.

Sales under R1 million have declined each year since 2020, while transactions in the R1.5 million–R3 million and R3 million+ brackets have grown.

The R1 million–R1.5 million band remains steady, but it is the upper end that shows the most momentum.

The highest-value sales are concentrated in key towns and tourism nodes, including Polokwane, Hoedspruit, Bela-Bela, Tzaneen and Greater Tzaneen.

Game farms, wildlife estates and large agricultural properties make up a significant share of these deals, meaning even a handful of transactions can lift the average sharply.

Estates dominate this segment, accounting for nearly 60% of sales above R3 million – well above the national average of 40%.

Buyers in this bracket are typically older and have more disposable income, while stock shortages continue to push prices higher.

Among the six provinces outside Gauteng, the Western Cape and KwaZulu-Natal, Limpopo stands out. While the Eastern Cape still records higher absolute volumes in the top price brackets, Limpopo is the only “non-big three” province showing consistent growth in sales above R3 million. Other provinces have flattened or declined.

A look at JP Morgan’s new all-electric skyscraper in New York

JP Morgan Chase recently opened its new global headquarters at 270 Park Avenue – New York City’s largest all-electric skyscraper and one of the most significant additions to Manhattan’s skyline in decades.

The 60-story tower is designed to accommodate 10,000 employees by year-end, and the Guardian notes that it contains enough steel to wrap the globe twice – and a fake breeze to flutter the US flag in its lobby.

The headquarters delivers 2.5 million square feet of flexible workspace featuring advanced technology, world-class amenities and 2.5 times more outdoor public space than the previous building.

As the city’s largest all-electric tower operating at net zero operational emissions, it sets a new benchmark for sustainable, healthy, and future-focused office design, the financial services giant said.

JP Morgan remains one of New York City’s largest employers, with 24,000 employees across the five boroughs. The new headquarters will house nearly half of them.

According to an independent study by Vista Site Selection, the bank contributes $42 billion annually to the city’s economy and supports an additional 40,000 jobs in local industries.

Construction of the new tower alone generated 8,000 jobs across 40 local unions, underscoring the importance of the project to the city’s workforce and economic recovery.

Core features of the new tower include:

2.5 million sq ft of adaptable office space and collaboration areas
285,000 sq ft dedicated to client entertainment
Eight expansive trading floors
A triple-height “Exchange” hub for dining and large gatherings
A touchless experience supported by 50,000+ connected devices
Column-free floor plates and a split elevator core for maximum efficiency
Higher ceilings, 50% more communal space, and 25% more space per person
Outdoor terraces with greenery and biophilic design elements

The building’s distinctive fan-column structure and triangular bracing create substantial new public space at street level, giving residents, workers and visitors a more open and accessible experience along Park and Madison Avenues.

The building is powered entirely by renewable energy sourced from a New York State hydroelectric facility. Sustainability innovations include:

Designed for LEED Platinum v4 and WELL Health-Safety Rating
Intelligent building systems using sensors, AI and machine learning to optimise energy use
Water storage and reuse systems that cut usage by over 40%
Triple-pane glazing and automated solar shades integrated with HVAC
97% of demolition materials recycled, reused or upcycled

The tower doubles the amount of outdoor fresh air supplied to interior spaces and includes continuous air quality monitoring throughout.

Wellness-focused amenities include:

State-of-the-art fitness and health centre
Yoga and cycling rooms
Medical services
Mother’s rooms
Meditation spaces
30% more daylight and circadian lighting

The project was led by Foster + Partners as design architect, with Tishman Speyer serving as developer manager.

Adamson Associate Architects acted as architect of record, supported by JB&B as mechanical and services engineers.

Fear Thy Neighbour: Why South Africans turn detective when buying property

Problematic neighbours are increasingly becoming deal-breakers for South African homebuyers, with many purchasers now conducting their own detective work to avoid disputes that can sour suburban life — or even force families to sell at a loss.

A Durban homeowner still remembers the day she thought her new neighbourhood came with an approval committee.

“Shortly after submitting an offer for our long-awaited dream home, my husband received an email from a potential neighbour informing him that we must attend a meeting with various owners to see if we qualified to live there.

“We were furious. It turned out that the author was a client of my husband’s and the whole thing was a practical joke. But, as we have discovered over the years, there’s always some truth behind a prank and we’ve certainly had our fair share of problematic neighbours,” the resident said.

She echoes the experiences of many homeowners: most disputes stem from noise, pets and parking, and even diligent buyers often fail to spot issues until it’s too late.

Across the country, stories abound — from teenagers’ all-night parties and endlessly barking dogs to mosquito-infested garden ponds and smoke-belching generators. In some cases, neighbourly tension escalates so severely that families eventually move, often accepting less than market value just to escape.

One resident recalls being jolted awake at 4am every Sunday by a neighbour’s generator during loadshedding. The neighbour insisted he had the right to run it so his family could cook breakfast before sunrise. “Luckily, that dispute was resolved,” she said — but not everyone is as fortunate.

With sellers unlikely to volunteer neighbour-related problems, seasoned buyers are taking matters into their own hands.

Tyson Properties CEO Chris Tyson noted that legal disclosure requirements seldom provide the full picture. You will never know about nuisance neighbours or if the seller did not tell the agent. A seller is hardly likely to volunteer that information to an agent or potential buyer if they want to sell their house.

“That leaves it up to the buyer to do some homework ahead of making a serious offer,” he said.

That homework increasingly includes peering over garden walls, chatting to locals, and visiting homes at different times of day to assess traffic, noise, parking and general behaviour in the street.

Word-of-mouth remains a powerful tool, with neighbourhood WhatsApp groups, community forums and Crime Watch apps giving prospective buyers insight into disputes ranging from illegal dumping to ongoing service delivery issues.

Experienced property professionals say these signs commonly point to potential trouble next door:

Neglected or poorly maintained neighbouring properties.
Sidewalks or verges that look untidy or inconsistent with the rest of the street.
Evidence of hoarding or clutter that could attract pests.
Ongoing renovations or stockpiled building materials indicating long-term construction.
Frequent tenant turnover if the neighbour is a landlord.
Airbnb or short-term rentals nearby.
Proximity to busy schools or sports facilities.
Safety concerns flagged by local police or neighbourhood watch.

Experts say that not every neighbourly conflict requires a for-sale sign. Some issues can be resolved through mediation, or by calling on authorities such as local police, municipal officials or neighbourhood safety groups.

Tyson added that buyers considering sectional title living should do extra due diligence. Before signing an offer, they may request financial statements, conduct rules and recent body corporate minutes, which reveal how well the scheme is run and what disputes may be simmering beneath the surface.

“Before signing an offer, you can ask for the scheme’s financial statements, the body corporate rules, and the minutes of recent meetings. This will give you a clear picture of how well the body corporate is run and what you can expect as a new resident,” Tyson said.

Resilient lifts full year guidance

Resilient REIT has raised its full-year distribution guidance on the back of stronger-than-expected performance in its South African portfolio.

In a pre-close update for the year ending December 2025, the property group said it now expects distribution growth of at least 10%, or 484.28 cents per share, in FY2025.

Shares in the group ae up some 30% in the year-to-date period.

The improved outlook reflects firm retail trading, higher-than-projected energy returns, a 50-basis-point interest-rate cut in the second half of the year and upgraded guidance from its European associate Lighthouse.

Resilient’s retail portfolio includes several major regional centres, among them Boardwalk Inkwazi and Galleria Mall in KwaZulu-Natal, Mall of the North in Limpopo, and both Secunda Mall and Highveld Mall in Mpumalanga.

Resilient reported 5.6% retail sales growth across its South African portfolio for the ten months to October 2025, or 5.3% on a rolling 12-month basis. Mahikeng Mall’s performance was excluded due to the impact of a major extension completed in May 2024.

Lease renewals were concluded at an average 2.2% increase on expiring rentals, while new leases were signed at 24.6% higher than outgoing tenants’ rentals.

Combined, rentals on renewals and new leases rose 6.3%. Escalations averaged 5.4% on renewals and 5.7% on new leases.

Vacancies remain low at 1.9%, including intentional vacancies linked to asset-management upgrades.

Construction continues on the extension to Irene Village Mall, which will accommodate a Checkers Hyper, Dis-Chem and several national tenants. Completion is targeted for August 2026.

Bulk earthworks have started on the 22,000m² expansion of Tzaneen Lifestyle Centre, due for completion in 3Q2027.

The REIT added 11.5MWp of new solar capacity in 2025, lifting installed capacity to 88MWp, enough to supply roughly 39.8% of its total electricity needs.

Battery capacity rose by 8.5MWh to 20.7MWh, a key enabler of broader solar deployments and improved load and demand management. The group said energy savings are tracking ahead of earlier forecasts.

In Spain, flagship new Stradivarius and Bershka stores at Salera are set to open in 1Q2026 following relocations and expansions. Comparable sales grew 8.5% in the nine months to September 2025.

In France, where GDP growth reached 0.9% in 3Q2025, Resilient recorded 3.2% sales growth across its assets—comfortably ahead of 0.9% inflation. Tenant activity remains strong, with new F&B brands fitting out stores at Saint Sever, and new openings including Darty, Jack&Jones and a Pull&Bear flagship across the French portfolio.

The Rivetoile extension was completed in 4Q2025, with leases concluded with Mango (renewal), Lovisa and Kraft.

Resilient said its updated guidance assumes stable macroeconomic conditions, no major tenant failures, continued municipal-rates affordability for tenants and the achievement of forecast electricity-demand savings.

The company will publish full-year results in early 2026.

Middle-class South Africans are taking on more debt – and, worryingly, retirees are too

South Africa’s consumer credit market continued to expand in the third quarter of 2025, with more people using credit and total balances rising across all major consumer segments.

But despite heavier borrowing and growing overdue balances, the proportion of individuals in default has improved, according to the latest Eighty20/XDS Credit Stress Report.

The report paints a picture of tentative recovery: more consumers are accessing credit, overdue balances have declined quarter-on-quarter, and default rates are easing.

Yet economic headwinds – rising inflation, higher household costs, and subdued growth forecasts – continue to weigh on consumers.

Real GDP grew 0.8% in Q2 2025, supported mainly by manufacturing, mining and trade. Unemployment also showed welcome improvement, dropping from 33.2% to 31.9%.

But economists remain cautious. The Bureau for Economic Research (BER) trimmed its GDP forecast for 2025 to 1%, warning that rising municipal rates, taxes and other administrative costs continue to strain households and businesses.

Inflation ticked up to 3.4% in Q3 from 2.86% in Q2, driven primarily by higher housing and utilities costs as well as food inflation — both up 4.5% year-on-year.

Despite the uptick, the South African Reserve Bank cut interest rates by another 25 basis points, bringing the repo rate to 7% and prime to 10.5%.

Treasury and the SARB also signalled stronger alignment on inflation targeting, adopting a narrower CPI target band of 2–4% with a 3% midpoint.

The report, which analyses more than 20 million active credit consumers, shows that the credit-active population grew 3.94% year-on-year in Q3.

Total overdue balances climbed 9% to R212 billion, yet the share of consumers with at least one account three months in arrears dropped to 40.4% – extending an improvement trend that began in 2023.

Mass Market

The Mass Credit Market – the country’s most financially vulnerable segment – saw continued credit growth. Credit-active individuals in this group rose 1% quarter-on-quarter to 8.6 million, taking up 2.1 million new loans, 95% of which were retail or personal credit.

Total loan balances increased nearly 5% year-on-year to R113 billion, while overdue balances rose 6%. However, the segment’s default rate declined to 51%, a 7% improvement from a year earlier.

Middle Class

Middle Class Workers remained stable at 3.6 million credit-active individuals, holding 12.9 million active loans.

The segment opened 1.2 million new loans in Q3, with personal loans making up nearly three-quarters of new accounts.

Overall balances grew 2.2% year-on-year to R541 billion, while overdue balances rose 5.5%. Default rates improved slightly, with 41.5% of this group now holding at least one defaulted account.

Heavy Hitters

The country’s most affluent segment – dubbed Heavy Hitters – continues to expand rapidly, growing 4% year-on-year to 2.2 million individuals.

The group took on 693,000 new loans in Q3, a 23% increase from 2024.

Heavy Hitters accounted for 65% of all new vehicle and asset finance loans and remain the backbone of South Africa’s home-loan market.

Mortgage balances in the segment reached R1 trillion, up 6.3% year-on-year.

This group also maintains the lowest default levels across all segments.

Retirees

Comfortable Retirees grew their presence in the credit system by 5% year-on-year to 1.5 million.

They opened 175,000 new loans in Q3 – with personal loans making up 64% of the total, suggesting increased reliance on credit to fund everyday living costs.

Total loan balances rose 8.4% to R211 billion, but overdue balances jumped 15%, signalling building financial strain among older consumers.

On average, South Africans spent 28% of their net income on servicing debt in Q3.

Heavy Hitters carry the heaviest burden, spending 48% of their income on instalments. Middle Class Workers spend 37%, and Comfortable Retirees now spend 22%, up from 20% a year ago.

Mass Market consumers allocate 19% of their income to debt.

The data suggests that while consumers are taking on more credit, improved repayment behaviour – alongside stabilising economic conditions and interest-rate cuts – is helping reduce the share of borrowers in serious distress.

However, rising overdue balances and growing reliance on unsecured lending in vulnerable segments highlight ongoing risks as households continue to absorb higher living costs and sluggish wage growth.

Fourways Mall turnaround gains traction

Accelerate Property Fund has reported a markedly improved set of interim results for the six months to 30 September 2025, signalling progress in its multi-year restructuring programme.

The listed Real Estate Investment Trust (REIT) delivered higher revenue, stronger earnings, lower vacancies, and reduced debt levels, supported by asset disposals, an insurance payout, and an improved performance at its flagship Fourways Mall.

The group posted revenue of R452.2 million, up from R392.7 million in the prior period, while basic earnings swung to a profit of 2.59 cents per share from a loss of 14.11 cents.

Headline earnings rose to 5.01 cents per share compared with a 5.67-cent loss previously. Funds from operations rebounded to R57.5 million from a deficit of R11.1 million.

Vacancies by gross lettable area reduced substantially to 15.1%, from 21.7% a year earlier, reflecting the fund’s intensified leasing drive and the recovery at Fourways Mall.

The fund highlighted several key milestones achieved during the period, including accelerated asset disposals, progress in reducing its loan-to-value ratio, and the completion of a fully underwritten R100 million rights issue.

The transaction lifted the largest shareholder’s stake from 46.7% to more than 50.7%, signalling renewed shareholder confidence.

Significant leasing progress was achieved at Fourways Mall, where 10,544m² of new space was let and 17,182m² renewed. Mall vacancies dropped from 17.9% in September 2024 to 10.7% in September 2025.

The mall’s momentum continued after the reporting period, with Walmart opening its new store on 28 November to strong footfall.

Revenue growth was bolstered by an R82.5 million insurance settlement, stronger commercial rental income, and higher parking revenue.

Retail income fell by R29.4 million due to asset disposals and vacancies at 73 Hertzog Boulevard, partially offset by the improved letting at Fourways Mall.

Operating expenses declined, with property costs falling by R15.5 million – driven by lower electricity and rates charges – while other operating expenses eased on reduced staff, director, and audit costs.

Finance costs dropped sharply by R28.4 million following debt settlements linked to asset sales and the capital raise. The fund has now hedged 68.1% of its borrowings, with all debt maturing on 31 March 2027.

Capital expenditure of R69 million was invested into Fourways Mall during the period.

Debt reduction remains a cornerstone of Accelerate’s turnaround. Two disposals – Erf 7 Roggebaai and 1 Charles Crescent- were transferred during the reporting period, reducing debt by R62.4 million.

Post-period, shareholder and regulatory approval was secured for the disposal of Portside, while the transfers of Pri-Movie Park, Beacon Isle, Valleyview, and 73 Hertzog Boulevard are expected between December 2025 and January 2026.

Collectively, these disposals are set to cut debt by an additional R719.1 million and bring vacancies down to 10.3%. The expected loan-to-value ratio will improve to 41.8%.

Capital commitments for the year amount to R120.2 million, down from R178.9 million previously.

The board has again opted not to declare an interim dividend as the fund continues to prioritise balance-sheet strengthening.

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