Shaun Rademeyer, CEO of MultiNET Home Loans | February 2025

As the home loan industry continues to navigate economic fluctuations, MultiNET Home Loans has conducted a comparative analysis of home loan registration performance across the key regions Gauteng, Western Cape and KwaZulu-Natal; from June to December 2023 versus the same period in 2024. These findings highlight the evolving market dynamics and the factors influencing regional performance over the past two years.

Overall Market Performance

Between June and December 2023, the total home loan registrations across Gauteng, Western Cape, and KwaZulu-Natal indicated modest activity vs the boom during the covid period. However, in 2024, we observed significant shifts in registration volumes, reflecting broader economic trends, interest rate adjustments, and buyer sentiment.

Gauteng: A Market in Transition                                

Gauteng, traditionally South Africa’s largest housing market, recorded a total of R49.05 billion in home loan registrations between June and December 2023. However, during the same period for 2024, property registrations decreased to R46.31 billion, reflecting a 5.6% decrease. This reduction may be attributed to tightening lending policies, higher interest rates, and a more cautious buyer approach.

Despite the overall dip, notable recoveries were seen in July and November 2024, indicating seasonal market resilience and a potential rebound heading into 2025.

Western Cape: Growth and Resilience

The Western Cape region demonstrated impressive stability, with total registrations increasing from R33.77 billion in 2023 to R34.30 billion in 2024 reflecting a 1.6% growth. This positive performance reflects sustained demand for property in urban and coastal areas, despite broader economic challenges.

The Western Cape’s resilience highlights its appeal to both investors and homeowners seeking long-term stability in a fluctuating market. With continued infrastructure development and an influx of semigration’s, the region remains a stronghold in South Africa’s property sector.

KwaZulu-Natal: A More Pronounced Slowdown

KwaZulu-Natal experienced the most significant decline, with total registrations dropping from R10.22 billion in 2023 to R8.32 billion in 2024, reflecting a sharp 18.5% decrease. This suggests that affordability concerns and regional economic conditions have had a more pronounced impact on property buyers in the province.

However, we expect that as infrastructure developments and investment initiatives gain traction, Kwa-Zulu Natal’s housing market could experience a resurgence in the coming years.

Key Takeaways and Industry Outlook

• Market Corrections Are Underway: The slight decline in home loan registrations suggests the market is adjusting to economic conditions rather than experiencing a downturn.
• Gauteng and the Western Cape Remain Strongholds: While Gauteng saw a minor dip, the Western Cape demonstrated growth, signalling its long-term stability.
• Interest Rate Sensitivity is a Key Factor: Higher borrowing costs have impacted affordability, leading to a more measured approach from homebuyers.
• Regional Trends Vary: While Kwa-Zulu Natal faced a notable slowdown, Gauteng and the Western Cape showed resilience, highlighting the importance of localized strategies in home financing.

At MultiNET Home Loans, we remain committed to supporting homebuyers through market shifts, offering tailored financing solutions that align with evolving economic conditions. As we look ahead to 2025, we anticipate a stabilizing market with opportunities for growth in key segments.

For further insights or assistance with home loan applications, contact MultiNET Home Loans today.

0861 54 54 44 | WA 061 537 8778 | www.multinet.co.za | info@multinet.co.za