The South African property market delivered a mixed performance in the first quarter of 2025, with overall sales volumes declining while house prices showed modest growth.
The interplay between seasonal patterns and broader economic conditions has shaped the landscape for Q1, according to the RE/MAX National Housing Report Q1 2025.
Referencing national Deeds Office data, the number of residential units sold across South Africa declined by approximately 8% year-on-year.
However, RE/MAX Southern Africa’s leadership views this not as cause for alarm but as part of a wider economic context.
“Firstly, the timing of the annual National Budget Speech often introduces a degree of uncertainty into the market, as potential buyers adopt a cautious ‘wait and see’ approach in anticipation of changes to taxes, subsidies, or economic policy,” said Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa.
“In Q1 2025, this effect was compounded by ongoing geopolitical tensions and global economic instability, which influenced inflation and overall consumer confidence.”
He further noted that first-quarter slowdowns are typical in real estate, owing to reduced working days.
“January is a shorter working month due to the holiday period, and December typically includes a closure of the Deeds Office, which causes a backlog in property registrations and delays in processing.
“These cyclical administrative slowdowns and reduced operational days mean that Q1 is often the quietest quarter for property transfers.”
Despite the national decline in transactions, RE/MAX Southern Africa reported notable growth. The network’s registered sales rose by 6.93% in Q1 2025, while reported sales across the brand increased by an impressive 10.51%.
Homes listed on remax.co.za were marked as sold within an average of just 17.1 days.
The latest search trends on remax.co.za reveal a shift in buyer interest away from the Western Cape’s traditionally dominant suburbs. The Top 5 most searched areas in Q1 were:
- Parklands, Western Cape
- Westville, KwaZulu-Natal
- Bluff, KwaZulu-Natal
- Summerstrand, Eastern Cape
- Table View, Western Cape
“House price growth in the Western Cape has been among the most robust in the country over recent years, driven by strong demand, perceived lifestyle advantages, and relatively stable municipal governance. However, this sustained price escalation appears to be having a dampening effect on demand,” Goslett said.
The emergence of suburbs in KwaZulu-Natal and the Eastern Cape in the Top 5 reflects increasing price sensitivity among buyers, many of whom are seeking more affordable coastal living options.
“As price sensitivity increases, buyers are turning to regions where they can still enjoy coastal living without the premium price tag, potentially redistributing demand more evenly across provinces,” Goslett said.
Another emerging trend is a gradual return of interest in Gauteng. The province’s share of RE/MAX SA’s total units sold rose from 37% in Q1 2024 to 39% in Q1 2025.
“From an investment perspective, Gauteng remains South Africa’s economic powerhouse, generating the highest provincial GDP. Ongoing infrastructure projects and urban regeneration efforts in key areas, such as Sandton, Rosebank, and parts of Pretoria, signal long-term capital growth prospects.
“For savvy investors, Gauteng presents an opportunity to purchase properties at relatively lower entry points, while still benefiting from high rental demand and gradual capital appreciation — particularly as more buyers shift their focus away from overheated markets in the coastal provinces,” said Goslett.
