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The Real Estate Round-Up

The Real Estate Round-Up

August 2025

September 02, 2025

Welcome to the ResiLogic Monthly Edition

Spring has arrived — and with it, a fresh wave of energy across South Africa’s residential real estate landscape. From bond application spikes and steady interest rate cuts to Cape Town’s continued affordability squeeze, August gave us plenty to unpack. Whether you're a developer, buyer, investor, or just property-curious, this edition distills what mattered most and what to watch as we step into September.

Interest Rates & Lending Conditions

The prime lending rate dropped to 10.50% as of 1 August 2025, marking the fifth consecutive cut since September 2024 (from 11.75%)—an overall decline of 1.25 percentage points, enhancing affordability for buyers.
BetterBond’s August Brief highlighted a 14% surge in bond applications in Q3, the strongest rebound since 2022, buoyed by lower rates.

Insight for September: With interest rates continuing to fall, expect sustained momentum in loan applications—especially among first-time buyers.

National & Regional Market Trends

House prices surged ahead of inflation, reaching an average residential price above R1.6 million, with year-on-year growth of 6.4% by June 2025. This was well above the 3% inflation rate at the time.
Buyer sentiment is shifting from premium properties to more authentic, lifestyle-aligned housing choices.

Outlook for September: Expect growing demand in mid-range segments and diversification of buyer preferences across regions.

Cape Town Market Highlights

Cape Town remains under pressure, with notable affordability challenges and soaring demand—largely driven by local migration and remote workers. Property values have jumped 160% since 2010, prompting the city to invest R40 billion into infrastructure.
Ongoing affordable housing efforts include large-scale developments in Woodstock, Green Point, and Pinelands, aiming to add thousands of new units. September Preview: Expect growing interest in mixed-use and affordable developments, as buyers seek accessibility in the face of rising prices.

House & Apartment Price Movements

All buyers are now paying over R1.6 million on average; first-time buyers are spending around R1.3 million, marking new highs.
Despite the rate cuts, market activity is strongest at higher-value tiers, while affordable segments below R500,000 are cooling.

What’s next: Watch whether the momentum at the upper end spills over to lift mid-market segments.

Summary Table

Topic	August 2025 Highlights	September 2025 Outlook
Interest Rates	Prime dropped to 10.50%, sparking a bond-application surge	Continued buying stimulus expected as rates stay low
Market Trends	Prices rising above inflation; buyer values shifting	More focus on lifestyle/location, regional hotspots
Cape Town	160% price growth since 2010; major infrastructure push	Affordable projects and mixed-use formats gaining traction
Price Levels	Record average prices — R1.6m+ for all, R1.3m for first-timers	Watch for spillover demand in mid-priced segments

ResiLogic Closing Thoughts

August confirmed what we’ve suspected: despite macro pressure, South African residential real estate remains resilient, agile, and full of pockets of opportunity. As rates edge lower and new stock enters the market, September is shaping up to be a month where savvy buyers and bold developers can find real traction.

Keep watching the trends. And stay building — one home, one deal, one insight at a time.

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