The real estate sector is showing positive momentum, with data from the final quarter of 2024 indicating a potential rebound in 2025.
Following a decline in the previous quarter, the overall property market has grown by 0.33% compared to the same period last year, signaling a slow but steady recovery.
According to Adrian Goslett, Regional Director and CEO of RE/MAX Southern Africa, the effects of the interest rate cuts implemented in September 2024 are beginning to reflect in the housing market’s performance.
“While the broader market only grew by 0.33% last quarter, our RE/MAX network saw a 16.33% increase in registered sales value from the previous quarter and a 7.03% rise year-on-year. This underscores the confidence our clients have in our brand,” said Goslett.
He further noted that reported sales within the RE/MAX network have increased by 11.39% year-on-year, offering a promising outlook for the first quarter of 2025.
Provincial Trends in the Housing Market
The Western Cape remains one of the most sought-after regions, with four out of the top five most-searched suburbs on remax.co.za located within the province.
Top 5 most-searched suburbs:
- Bryanston, Gauteng
- Rondebosch, Western Cape
- Parklands, Western Cape
- Claremont, Western Cape
- Gardens, Western Cape
Across the board, RE/MAX listings have reported higher average house prices than the national standard. The average listing price on remax.co.za for the last quarter of 2024 stood at R2,950,093.
Among provinces, the Western Cape continues to lead in pricing, with an average house price of R1,730,225. KwaZulu-Natal follows with R1,248,923, slightly surpassing Gauteng, which recorded an average of R1,065,800.
“Gauteng has been slower to respond to the recent interest rate cuts. The next few months will be critical in determining how the province adapts,” Goslett added.
As interest rates continue to fluctuate, the property market’s positive trajectory is expected to strengthen, creating opportunities for buyers, sellers, and investors.
Goslett advised those looking to enter the market to act quickly before property values fully rebound.
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Construction Sector Outlook
Meanwhile, the FNB/BER Building Confidence Index reflected a slight improvement, rising from 40 in 2024 to 41 in the first quarter of 2025. Despite this increase, nearly 60% of respondents remain dissatisfied with current business conditions.
While activity levels in the construction sector have been mixed, there is growing optimism for future projects. Contractors anticipate increased work in the coming months, supported by a stronger building pipeline from architects.
Senior FNB economist Siphamandla Mkhwanazi noted that while contractors expect an uptick in activity, the sector faces risks, particularly from delays at the municipal level, which could slow down project approvals and construction timelines.
“The challenge remains that if these expectations do not materialize, business confidence could take a hit,” Mkhwanazi cautioned.
Compared to the final quarter of 2024, the latest survey found shifts in industry sentiment:
- Hardware retailers (+9)
- Quantity surveyors (+4)
- Building subcontractors (+3)
- Building material manufacturers (-2)
- Architects (-4)
- Main contractors (-6)
Despite some setbacks, contractors remain hopeful for improvements in activity, employment, and overall business conditions in the upcoming quarter. However, Mkhwanazi warned that if these expectations are not met, sentiment could decline further.
