Affordable housing in South Africa is on the up, with consistent demand for properties priced between R350,000 and R700,000.
Standard Bank has observed a double-digit increase in activity within this market over the past four years, driven by continued urbanisation and an increasing need for accessible housing in metropolitan areas.
“This segment continues to show resilience, particularly in Gauteng and the Western Cape, where demand remains strong despite economic pressures,” said Toni Anderson, head of Standard Bank Home Services.
Households earning up to R30,000 per month are the primary buyers of affordable homes. While the uptake of sectional title homes has more than doubled in the past four years compared to the four years leading up to 2020, the majority of buyers still prefer full-title, standalone houses.
“These are likely to be on the outskirts of key metros, but strong sales suggest buyers are willing to make that trade-off for full-title homes,” said Anderson.
Provinces including KwaZulu-Natal and the North West have also experienced rapid growth in home loan uptake for affordable housing, but Gauteng continues to dominate the market. In the four years leading up to February 2025, Gauteng accounted for 47% of all affordable housing loans issued by Standard Bank—a trend that was evident even before the pandemic.
However, demand for affordable housing goes beyond traditional markets. Despite rising house prices, the Western Cape has remained active in the affordable housing sector, a trend it shares with Gauteng. Over the four years leading up to February 2025, the Western Cape accounted for 18% of all affordable housing loans issued by Standard Bank, with KwaZulu-Natal ranking third at 12%.
“When you look at the Western Cape and Gauteng, you see significant private sector investment in affordable housing projects and urban development. This has spurred growth and created more opportunities for first-time homebuyers who typically seek properties in this price range,” said Anderson.
Many Standard Bank customers take out just one affordable housing loan, but a growing number are accessing additional funds for home improvements or expansions—indicating that these purchases serve as entry points for buyers with greater aspirations.
For first-time buyers, the bank offers up to 108% bond financing to cover upfront costs such as registration and transfer fees. It also provides re-advances, making it easier for customers to access funds for home improvements or expansions. These re-advances are simpler than applying for a new home loan, and the funds become available once all requirements are met.
In recognition of its significant role in the market, Standard Bank has been ranked Africa’s Most Valuable Banking Brand for 2025 in Brand Finance’s Global 500 Banking Brands report. Earlier in March, the bank was also named South Africa’s Most Valuable Banking Brand in the South Africa Top 100 Brands report.
This accolade marks the fourth consecutive year that Brand Finance’s annual ranking of the Global Top 500 Banking Brands has acknowledged Standard Bank, reflecting its consistently high standing, according to the bank.
Each year, Brand Finance evaluates 5,000 of the world’s biggest brands, publishing nearly 100 reports that rank brands across various sectors. The world’s top 500 most valuable and strongest banking brands are featured in the annual Brand Finance Global 500 Banks ranking.
