As South Africa’s property market is changing, first-time buyers are leading this change to build the future of their families.
New buyers are focusing on what they can really afford, recognising that interest rates are steady. And they are using new tools and options to secure home loans.
As it stands, their practical approach is helping them succeed. And it is setting the stage for understanding the broader trends shaping the market.
Critical market force
General manager of ASI Property Management, Gerard Abrahamse, said towards the end of last year, first-time property buyers accounted for approximately 46% to 48% of all home loan applications. They have cemented their position as a critical market force.
“Even though interest rates and the cost of living remained high, the volume of sales held steady as buyers adapted. Home prices rose slowly, averaging around R1.67-million nationally. This reflects a market that is stable and predictable rather than speculative. A big factor contributing to this stability is the steady interest rates. Although rates are still higher than they were in the decade prior, they are no longer changing rapidly.
“This means monthly payments are predictable. So people feel more comfortable planning their finances. For most buyers, having certainty about what they will pay each month is more important than hoping for a sudden drop in interest rates,” said Abrahamse.
He added that banks have also made it easier for buyers to enter the property market.
Prime lending rate
“In 2025, average deposits for first-time buyers became more manageable, often averaging around R120,000. This lowered the barrier for many. Because of these changes, more people had their home loan applications approved. Especially after the prime lending rate fell to 10.5% in August 2025. This combination of better approval rates and stabilised costs has encouraged more people to commit to buying,” he said.
Abrahamse also pointed out that through these financial changes, technology is also transforming the way people buy homes in 2026.
“First-time buyers now use websites to look for homes and apply for home loans online through platforms like the ooba Home Loan Calculator. These digital tools save time. And they bring greater confidence to buyers, especially younger people navigating the process for the first time. However, home prices and demand are not the same across South Africa,” he said.
Allure of coastal areas, ‘green’ homes
He also said that in Cape Town an average home was ranging from R2.1-million. While in Johannesburg, the price sits closer to R1.6-million.
Abrahamse also said that in Durban the average home would range from R1.3-million to R1.5-million. He said that the demand is rising as more people look for coastal living at a lower price point than Cape Town.
“Beyond price and location, today’s buyers are paying more attention to lifestyle and environmental factors. Many want to live in friendly neighbourhoods with a sense of community, reliable internet for hybrid work, and access to green spaces. There is also a growing interest in ‘green’ homes that save energy features. Ones that help save money on utilities while benefiting the planet.”
