South Africa’s housing market continues to strengthen, bringing renewed confidence to homeowners and investors.
While total residential sales have dropped sharply since 2015, South Africa’s ultra-luxury property market is booming – with sales in the R20 million –R35 million range climbing more than fourfold, according to Pam Golding data.
The Pam Golding Residential Property Index recorded a national house price inflation (HPI) of +7.3% in June 2025, up from a revised +6.9% in May, marking the fastest annual growth in national house prices since late 2007.
This places current growth well above the peaks of previous market cycles.
Fuelling the rebound is a sustained period of low consumer inflation, which has remained at or below the Reserve Bank’s lower 3% threshold since late 2024.
This has translated into real (inflation-adjusted) house price growth of +4.3% in June, the ninth consecutive month in positive territory – underscoring the resilience and rising momentum in the property sector.
Dr Andrew Golding, chief executive of the Pam Golding Property group, said: “While the Western Cape continues to lead the way, the recovery is broad-based, with growth in house prices accelerating across all three major regional markets.”
According to the Pam Golding Residential Property Index the recovery in HPI in the Western Cape continued to accelerate in June, rising to +8.3%, while both Gauteng and KwaZulu-Natal continued to rebound, rising to +5.4% and +5.1% respectively, reducing the gap with the Western Cape.
For the first half of 2025, while national HPI has averaged +6.1%, regional performances range from +7.7% in the Western Cape to +4.25% in KwaZulu-Natal and +4.17% in Gauteng.
Notably for KZN, this represents the strongest growth in house prices since 2021, while in Gauteng it matches the post-pandemic rebound.”
House price inflation in all but the upper price band continues to gather momentum. House price inflation in the price band below R1 million has outpaced growth in prices in all higher price bands since late-2024, said Pam Golding.
| National HPI | 2024 % | H1 2025 % |
| <R1 million | 2.35 | 8.59 |
| R1m – R2m | 2.26 | 5.04 |
| R2m – R3m | 3.41 | 6.65 |
| >R3m | 5.16 | 4.29 |
| Average | 2.83 | 6.07 |
SOURCE: Pam Golding Residential Property Index
Coastal vs non-coastal
House price inflation for coastal properties, which Lightstone defines as any property located within 500 metres of the coastline, continues to outpace the growth in prices for properties located further inland.
Said Dr Golding: “In June, the recovery in coastal house prices continues to outpace the rebound in non-coastal HPI, with prices rising by +6.2% and +4.2%, resulting in a widening of the coastal price premium to +2%.
“The coastal price premium has risen from a low of +1.3% in October 2024 to +2% in June, averaging 1.7% during the first half of 2025.”
Major metro housing markets
The recovery in national metro housing markets, which initially started in Cape Town, has now become broad based, with all major metro markets now registering a rebound in house prices.
Notably, Cape Town continues to outperform other metro markets by a significant margin, rising by +6.9% in June, followed by +3.0% in Tshwane and +2.8% in eThekwini.
This trend is also evident in H1 2025, with Cape Town outperforming other metro markets by a wide margin.
Having peaked in 2022, total residential property sales activity over the past decade (financial year 2015 to FY 2025) has declined, almost entirely due to a reduction in sales in the price band below R1.5 million.
SOURCE: Deeds Office
“However, even as the overall number of homes sold has declined, mainly attributable to the decline in homes priced below R1.5 million, in certain price bands – including the upper bands – the actual number has risen,” said Dr Golding.
There has been a marked increase in the actual number of homes sold in the R1.5 million – R3 million and the R3 million – R6 million price bands, he said.
| total units | FY 2015 | FY 2025 | change | Change % |
| <R1.5m | 217 942 | 121 878 | -96 064 | -44.1 |
| R1.5m-R3m | 48 941 | 60 999 | +12 058 | +24.6 |
| R3m–R6m | 14 390 | 22 580 | +8 190 | +56.9 |
| R6m–R12m | 3 221 | 5 287 | +2 066 | +64.1 |
| R12m-R20m | 517 | 938 | +421 | +81.4 |
| R20m-R35m | 180 | 733 | +553 | +307.2 |
| R35m+ | 295 | 71 | -224 | -75.9 |
| TOTAL | 285 486 | 212 486 | -73 000 | -25.6 |
