Property

Rich foreigners flock to South African property

Kirsten Minnaar • 8 January 2026

South Africa’s property market is rebounding as easing interest rates, a stronger rand, and renewed confidence draw wealthy regional buyers to luxury estates.

This is according to Phoenix Bonds managing director Hannah van Deventer, who said the country’s luxury property market is now becoming a preferred destination for discerning buyers across the continent.

She explained that it’s a trend, along with growing local buyer activity in the over R750,000 price range, that is at the heart of an uptick in the sector after a sluggish start to the year.

“House price inflation is once again outpacing consumer inflation, marking a turning point after a lengthy period of slow growth,” Van Deventer said.

The prime lending rate has dropped to 10.25%, with further cuts expected in 2026, which will make property more accessible to buyers. The rand’s rebound has also boosted purchasing power despite ongoing diplomatic tensions.

“And what’s also noteworthy is that while semigration to the Western Cape remains strong for lifestyle buyers, Gauteng is quietly attracting purchasers back to its revitalised residential hubs,” she said.

From golf greens to eco havens, the country’s secure estates are appealing to a growing number of regional investors looking for a prestigious lifestyle with world-class amenities, said Century 21 Fourways’ Anne Copley.

“With estates like Steyn City leading the charge, the surge in demand signals a powerful shift: that luxury living in South Africa is not just a local trend, it’s a regional movement,” Copley said.

Copley positioned the luxury market in Gauteng between R6 million and R35 million, with a recent sale by Century 21 of R25 million.

“Within this price band, buyers can access a wide variety of properties, from modern architectural homes in eco estates to expansive residences in golf communities,” she said.

“Two of our latest luxury listings include a R35 million architect-designed home in Steyn City, and a R30 million property in Dainfern Golf Estate, which was featured in ‘Top Billing’, and both are attracting considerable buyer interest.”

Still upmarket, but with a more affordable starting price of R2.86 million, Cedar Creek Estate in Fourways is also enjoying heightened activity.

An exclusive development mandate to Century 21 Fourways, Copley said it is meeting the requirements for a blend of contemporary design in a wildlife setting.

It offers all the amenities, good security, and excellent proximity to Fourways Life Hospital, Lanseria Airport, Fourways Mall, Cedar Square, Monte Casino, and top schools.

First-time buyers

For first-time buyers, Van Deventer said the sweet spot in Gauteng right now is homes priced between R900,000 and R1.6 million.

The most active areas include Midrand, Randburg, and parts of Pretoria East, where sectional title developments and starter homes are in high demand.

“These neighbourhoods offer excellent access to work hubs, schools, and shopping centres, making them attractive for young professionals and families taking their first step onto the property ladder,” she said.

According to Van Deventer, banks are also the most willing to grant bonds to new entrants looking to buy in these areas.

“Typically, first-time buyers can expect to put down a deposit of around 10% to 15%, although some banks may grant 100% bonds if the applicant’s credit profile is strong,” she said.

Although the process can feel daunting, she explained that it is simply a matter of showing the bank that the buyer can comfortably afford the home they want.

“Think of it like applying for a gym membership – you need to prove you’ve got the stamina to keep up with the monthly payments. That means a steady income, a clean credit history, and usually a deposit to show you’re serious,” she explained.

The good news, Van Deventer said, is that banks are keen to help young buyers. With interest rates easing, their monthly repayments may also be more manageable than they expect.

“With the right paperwork in hand, the dream of owning your first home is closer than you think,” Van Deventer added.