Lower interest rates and an improved economic environment could see house prices boom in South Africa in 2025, according to industry watchers.
According to BusinessLive Betterbond, a mortgage provider, said that home loan applications were up 30% in November last year, compared to the same period in the previous year. It also said quarter-on-quarter data showed growth.
It quoted Bradd Bendall of Betterbond as saying: “We expect house prices to lift to new record levels now that the prime lending rate has started to drop again after months of holding steady at a 14-year high. House inflation will be particularly pronounced in the metropolitan areas.”
Another property group, Seeff, expressed similar sentiments, saying that the lack of loadshedding, improved economic sentiment, and lower inflation could all contribute to higher property prices, particularly in Gauteng, Mpumalanga, and Limpopo, and some coastal cities, such as Gqeberha.