MAIN IMAGE: Adrian Goslett – regional director and CEO of REMAX Southern Africa
REMAX
As we approach the end of 2025, REMAX Southern Africa takes stock of what the year has taught us about the South African residential property market. Seismic shifts in buyer behaviour, interest rates, regional patterns and investment sentiment have marked the year.
“While the market is not without its challenges, there are clear and actionable lessons emerging for homeowners, investors and developers,” says Adrian Goslett, regional director and CEO of REMAX Southern Africa.
1. Affordability and financing matter more than ever
In 2025, one of the most important catalysts for activity was improved affordability owing to interest rate cuts. Lower borrowing costs meant that buyers who might have deferred in the hope that borrowing costs would become more affordable have now found renewed impetus to enter the property market.
For buyers, the lesson is clear: those who can enter the market early will have a strong strategic advantage over those who wait until interest rates drop further and cause even higher demand (which inevitably will inflate property prices further).
2. Western Cape demand is not without its limits
In the Q2 2025 REMAX National Housing Report, Goslett stated the following:
“Driven by sustained demand, property prices in the Western Cape have surged beyond the reach of many buyers, particularly those who are unable to match the region’s value when selling property in other provinces.”
For the second quarter in a row, the Western Cape no longer dominated the Top 5 list of most searched suburbs on remax.co.za; instead, areas in Gauteng and KZN re-emerged within the top 5.
The lesson here is that sellers in the Western Cape should not expect demand to remain as strong forever and should rely on the advice of a reliable real estate professional to determine a realistic asking price.
3. Caution remains: macro-risks must be managed
Despite the positive signals, the broader economy remains cautious. Modest GDP growth, geopolitical tensions, and affordability pressures still exist. This is why we have sometimes seen the SA Reserve Bank act more cautiously in 2025 than many South Africans would have hoped for.
The lesson in all of this is not to over-leverage oneself, because conditions could change quite quickly, given the risks mentioned above. For property investors, this means understanding your debt servicing risks and focusing on the fundamentals of location, quality and cash flow.
“With the momentum gathered in 2025, our expectation is for continued but measured growth into 2026. Key risk factors remain: interest-rate policy, inflation, consumer confidence, and regional supply/demand imbalances. But for the well-informed buyer, seller or investor, the near-term window offers opportunity,” Goslett concludes.
