The South African property market continues to evolve, with the current downward interest rate cycle creating opportunities for buyers and investors. MultiNET Home Loans is at the forefront, helping clients navigate these changes.

Analysing recent data on property transactions, values, and average property prices reveals the market’s resilience and growth, even amidst economic challenges.

Property Transactions: Adjusting to Market Dynamics

Over the past six years, property transaction volumes have varied. After a peak in 2021 with 243,545 transactions, the market has seen a decline, with 186,862 transactions in 2024, reflecting a 23.3% decrease since 2021. This trend highlights the impact of changing economic conditions on consumer behaviour and the impact of record low interest rates during 2021.

Cash transactions, however, have demonstrated stability. In 2024, cash transactions slightly increased by 1.3% from 75,547 in 2023 to 76,549, showcasing sustained interest from investors who prioritize the security of real estate investments.

Property Values: A Testament to Market Resilience

Despite the drop in transaction volumes, the total value of property transactions has grown steadily over time. From R229 billion in 2018 to R293 billion in 2024, this represents a 27.9% increase in transaction value over six years. While 2024 saw only a slight recovery of 1.2% from 2023’s R289 billion, the upward trajectory reflects the market’s underlying strength.

Bond-financed property values also remain robust, with 2024 seeing a total bond value of R155 billion, a slight 2.8% decrease from 2023. These figures underscore the importance of home loans in sustaining the property market.

Average Property Prices: Significant Growth

One of the most encouraging trends is the steady increase in average property prices. Since 2018, average prices have grown from R1.18 million to R1.57 million in 2024, representing an overall increase of 32.6% over six years. Even in the short term, average property prices rose by 5.1% from R1.49 million in 2023 to R1.57 million in 2024, signalling continued demand for quality properties.

The average bond size also saw substantial growth, increasing by 33.1% from R1.06 million in 2018 to R1.41 million in 2024, as buyers leverage favourable interest rates to access higher-value properties.

Empowering Buyers with MultiNET Home Loans

At MultiNET Home Loans, we see these trends as a strong indicator of a resilient property market. Shaun Rademeyer, CEO of MultiNET Home Loans, emphasizes the importance of adapting to changing market dynamics.

“Despite the challenges in transaction volumes, the steady increase in property prices and values highlights the enduring appeal of real estate. With the current downward interest rate cycle, buyers have an excellent opportunity to secure long-term value in the market,” Rademeyer says.

MultiNET Home Loans remains committed to helping buyers and investors secure the best financing solutions for their needs, ensuring that clients make informed decisions backed by market insights.

Looking Ahead to 2025

As we enter 2025, property prices are expected to continue growing in line with inflation. The ongoing downward interest rate cycle will improve affordability for buyers, enabling more South Africans to qualify for home loans. This increased affordability is anticipated to result in a rise in home loan approvals, further stimulating activity in the property market.

MultiNET Home Loans predicts a strong year for the property sector, with improved affordability driving new opportunities for buyers and investors alike. Our team remains dedicated to supporting clients with expert advice and tailored financing solutions to help them capitalize on these favourable market conditions.

For expert advice and tailored home loan solutions, contact MultiNET Home Loans today. Let us turn your property aspirations into reality.

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