Message to South Africans who want to buy a home

Property experts stressed that South Africans who can afford to buy a home should do so now, as lower interest rates and rising property prices make waiting more expensive and could see potential buyers miss out on attractive opportunities.

“The longer you wait to buy your own home, the more it will cost, and the harder it will be to buy,” said Seeff Property Group chairman Samuel Seeff. “If you have been on the fence about entering the property market, then the time to act is now.”

With the significant interest rate cuts over the last year, and the housing market now showing strong signs of recovery, including rising prices, waiting any longer could mean missing out on a prime opportunity.

“Prospective buyers should take advantage of the lower interest rate,” he said. “The past year has brought welcome relief and notable savings to homeowners and buyers.”

Since September 2024, the South African Reserve Bank has delivered five interest rate cuts, reducing the repo rate from 8.25% to 7.0% and the prime lending rate to 10.5%.

This has put more money back into consumers’ and homeowners’ pockets and made home loans more affordable than they have been in years.

For a homeowner with an average home loan, this translates to savings of around R900 per month. Buyers who purchase below the transfer duty exemption level of R1.21 million can save even more.

The improved affordability is already having a tangible effect on the market. Data from FNB’s House Price Index show that the average growth in selling prices has accelerated to 4.5% year-on-year as of August 2025.

This is a significant improvement from the 1.2% growth reported in January 2025, Seeff said. This also means a property that someone could have purchased for R1 million in January might now cost about R45,000 more.

Act now or lose out

Home loan applications are increasing, with mortgage originators such as ooba Home Loans, for example, reporting application volumes rising by as much as 12% and 14% compared to 2024.

This growth is a clear sign of renewed buyer confidence and pent-up demand being released into the market, and Seeff stressed that those who can buy should not wait.

General mortgage lending conditions remain highly favourable for property buyers. Deposit requirements have slightly eased over recent months, while approval rates remain high.

Stiff competition in the home loans market also means that buyers could secure rate concessions, which further helps with affordability.

However, Seeff warned that this window of opportunity may not remain open indefinitely, given that property prices are climbing again.

While there is hope for more interest rate cuts, he said there is no guarantee. Therefore, he encouraged prospective buyers not to hesitate, as they may lose out on a crucial window of opportunity.

Seeff explained that the sooner someone gets onto the property ladder, the more they stand to benefit in the long term, even if it means starting small if that is all they can afford.

“Investing in your own home is not just an asset, but a forced form of saving. Every monthly bond payment contributes to building equity and provides a solid foundation for your financial future,” he said.

In a market with rising rental prices, owning a home can provide a much-needed hedge against inflation.

“My advice to anyone who is financially in a position to buy is to do so now. The market is ripe with opportunity, and you do not want to look back in a year’s time and regret that you did not take the leap,” he said.