The South African residential property market showed resilience in July as mortgage lending continued, despite higher down payment requirements creating some pressure on applications. Meanwhile, luxury residential complexes in Gauteng and the Western Cape continued to attract high-income buyers.
According to the August BetterBond report, the number of mortgages issued in July increased by 4.1% compared to the previous year and by 28% compared to July 2024. The average property price remained relatively stable: the average price for all buyers was R1.7 million, while the average price paid by first-time homebuyers exceeded R1.4 million, reaching a record high for this category.
In the elite golf club Dainfern in Sandton, the median price rose by 17%, reaching R6.3 million. BetterBond attributed the market support to improved affordability following interest rate cuts that began in late 2024, as well as an increase in average household income, which grew by 14% over the last two years.
The average mortgage for a first-time buyer was R1.2 million, with the required average deposit equivalent to 13.2% of the purchase price. Although average deposits rose again in July, the deposit-to-annual salary ratio remained lower than the previous year, decreasing by 21% from the peak in the fourth quarter of 2022.
BetterBond data indicated that this improvement was not limited to one part of the country. In the elite golf and equestrian complex Blair Atholl in Lanseria, homes were listed from R10 million to R67 million.
Demand for Elite Complexes in Gauteng
At the top end of the market, Seeff Property Group noted growing interest in luxury residential complexes in Gauteng. Seeff pointed out that closed complexes around Johannesburg, Pretoria, and the wider Gauteng region have seen significant growth over the past two decades, with these complexes increasingly dominating the high-end market in terms of average property value, price stability, and buyer demand.
Lightstone data cited by Seeff shows that complexes accounted for 16.7% of total transactions in Gauteng but 28.6% of the total transaction value, which exceeded R35 billion. Properties selling for more than R4 million made up 11.2% of complex transactions compared to 4.14% across the entire Gauteng market.
In Pecanude, waterfront villas are valued between R2.8 million and R25 million. The average transaction in a complex was R2.37 million, approximately 76% higher than the Gauteng average of R1.3 million. Typical homes in elite complexes usually cost between R3 million and R7 million, although individual properties reached significantly higher prices.
Chairman Samuel Seeff stated that the drive to improve security levels and service has led to properties in complexes achieving some of the highest average prices. In the Western Cape, the luxury and hospitality market also attracted attention.
According to Seeff, the Park Avenue Boutique Estate complex in Houghton Bay was listed for sale at R114 million plus VAT. Seeff's real estate specialist in Houghton Bay, Ingred Killa, reported that the property was initially offered off-market before public advertising, noting that its integrated zoning for hotels makes it a rare investment opportunity in an area lacking such zoned properties.
Tourism growth in Cape Town has noticeably intensified, stimulating demand for hotel assets. The complex spans 8,527 square meters and includes a mansion with five suites, four double villas, a treehouse, a spa, a pool, a conservatory, a commercial kitchen, and event facilities. Killa suggested that the property could function as a luxury boutique resort, a corporate retreat, or a wellness center. This hospitality opportunity arises against the backdrop of continued tourism growth in the Western Cape.
According to Seeff, international arrivals in Cape Town increased by 11.1% to 1.5 million in 2025, and tourism spending rose by 15.4% to R26 billion. Regional hotels showed an average occupancy rate of 71%, rising to 80% during peak periods.
Buyer interest increased, particularly for elite family homes in Eagle Canyon due to the picturesque golf course and amenities. BetterBond data also indicated continued national tourism growth: international arrivals to South Africa increased by 5.6% year-on-year in the first six months of 2026. Europe remained the largest source country, followed by North America.
Killa noted that the Houghton Bay property market attracted local, domestic, and international buyers, particularly from Germany and the UK. She added that the average property value in the area has doubled over the last five years, with recent sales conducted by Seeff reaching R40 million and R65 million. However, BetterBond warned that slow growth in approved building plans in major municipalities combined with weak financing for new construction could lead to a future supply shortage.
