Fewer homes are being sold
The number of homes sold each year has gradually decreased — from 247 000 in 2014 to 218 000 in 2025. The one exception was 2021 and 2022, when a surge of activity followed the Covid-19 lockdowns. Outside of those two years, the trend has been a slow and steady decline.
This doesn't mean the market is struggling — it simply means fewer transactions are happening. Prices have continued to rise even as sales volumes eased.
Young buyers are buying less
In 2014, buyers between the ages of 18 and 35 made up 40% of all home purchases — around 72 000 transactions. By 2025, that had dropped to 30%, or about 47 000 transactions.
A few things explain this shift. House prices have gone up faster than salaries. Saving for a deposit takes longer. Banks have also been stricter about who they lend to since the 2008 financial crisis. This isn't unique to South Africa — countries around the world are seeing the same pattern.
Prices have gone up everywhere — but not equally
Despite fewer sales, property values have grown strongly across all price bands over the past decade. Affordable properties actually grew the most in percentage terms — up 230%. Luxury properties grew by 156%, High Value by 150%, and Mid Value by 141%.
Where a property is located makes an enormous difference to how much it has grown in value. Here's what a R1 million home bought in 2014 would cost today:
Cape Town leads the pack by a wide margin, driven by high demand, limited land, and strong investor interest. Other cities have also grown well, though more steadily.
What people want in a home is changing
Freehold homes — your traditional standalone house — are still the most common type of property bought and sold. But their share of the market has slowly declined. Sectional Title properties (like apartments and townhouses) have been gaining ground, and estate living has held steady. Freehold has slipped from 50% in 2014 to 48% in 2025, while Sectional Title has nudged upwards from 25.6% to 25.8% and Estates have moved from 24% to just over 26% of the market.
This shift reflects lifestyle changes that really picked up speed after Covid. More people are looking for security, shared amenities, and homes that are easier to maintain — and Sectional Title and estate properties tend to tick those boxes.
So where does the market stand?
South Africa's property market remains solid. Population growth and limited housing supply continue to support prices, and the fundamentals are sound. Strong performing areas include the Western Cape, the KZN North Coast, parts of the Eastern Cape, and the Hoedspruit region.
There is an upside. Property values have grown across every segment over the past decade — owners who stayed in the market have been rewarded. Affordable properties bought in 2014, grew the most in percentage terms at 230%, meaning entry-level buyers who got in have seen strong returns. And cities like Tshwane, eThekwini, and Nelson Mandela Bay still offer accessible price points with solid growth potential.
Yes, buying a first home is harder than it was ten years ago — but opportunities do exist. Sectional Title and estate living offer more accessible entry points. The right location and price band can still make homeownership achievable. And for investors and existing homeowners, the story has largely been a positive one.
The market is changing — but change brings opportunity. Knowing where to look, and what to look for, makes all the difference.