The latest FNB Estate Agents Survey for Q3 2025 paints a cautiously optimistic picture of South Africa’s residential property market. After months of uncertainty, market activity, agent confidence, and buyer sentiment have all improved, particularly in the affordable housing segment, which continues to drive growth nationwide.
Home prices rise at the fastest pace since 2022
According to FNB, the House Price Index (HPI) held steady at 4.9% year-on-year in September, averaging 4.8% for the quarter. This is the fastest pace of price growth since early 2022, which reflects the combined impact of interest rate cuts that boosted demand, and limited housing supply that continues to drive prices upward.
While this recovery is encouraging, affordability challenges remain a key theme for many households, especially as economic pressures persist.
Agents report busier markets and brighter outlooks
The FNB Activity Index nudged up to 6.0 in Q3 (from 5.9 in Q2), suggesting growing buyer interest and stronger market turnover. The affordable segment (properties below R750 000) stood out with an activity score of 6.4, while 21% of agents rated their markets as “highly active”, which is a solid improvement from earlier in the year.
Looking to the final quarter of 2025, 67% of agents expect activity to increase, nearly double the optimism reported just three months ago.
The main reasons?
- Interest rate cuts (48%) are improving affordability
- Seasonal demand (32%) is boosting buyer interest
- More positive economic sentiment post-election
“The property market appears to have moved past the deep uncertainty of early 2025,” says FNB Economist Siphamandla Mkhwanazi. “The path ahead is one of cautious but steady recovery.”
Where in South Africa is the property market heating up?
Regional trends show a mixed but overall improving picture:
Gauteng
Agents in Gauteng are upbeat despite slightly longer selling times, pointing to improving confidence and a steady stream of buyers.
- Activity: 5.9 (up from 5.7)
- Agent sentiment: Highest nationally at 81%
Western Cape
The province remains South Africa’s fastest-moving market, with average selling times of just eight weeks and one day. However, stock shortages and high prices appear to be weighing on agent outlooks.
- Activity: 6.2 (up from 5.9)
- Sentiment: Dropped to 60%
KwaZulu-Natal
Infrastructure challenges persist, but buyer interest and agent morale have strengthened noticeably.
- Activity: 6.2 (steady)
- Sentiment: Rebounded to 69% — the highest level since the April 2022 floods.
Eastern Cape
Confidence has improved dramatically. This is despite transaction volumes remaining stable.
- Activity: 6.1 (unchanged)
- Sentiment: Jumped from 56% to 77%
How long homes are taking to sell and why people are moving
Nationally, the average selling time held steady at 12 weeks and three days. The R1.6–R2.6 million price band recorded the shortest average at 10 weeks and six days, while the Western Cape continues to outperform on turnover speed.
In terms of motivations:
- Life-stage downscaling remains the biggest reason for selling (26%).
- Financial pressure is still significant, driving one in five sales.
- Upgraders now account for 13% of transactions, showing early signs of renewed confidence.
- Emigration sales remain low at 5%, well below the long-term average of 8%.
First-time buyers and investors are leading the charge
The entry-level segment remains the heartbeat of the current market. First-time buyers made up 30% of all transactions, up from 26% last quarter, and nearly half of all affordable market buyers (47%) were purchasing their first homes.
Buy-to-let investors are also re-emerging, representing 14% of all transactions, with their activity highest in the sub-R750 000 range. This combination of end-users and investors continues to underpin demand in lower-priced segments.
What’s next for South Africa’s property market
Overall, the picture for late 2025 is one of gradual but sustained recovery.
- Agent sentiment has climbed to 76%, the highest in over a year.
- Interest rate relief and improved lending conditions are encouraging more buyers to enter the market.
- Regional contrasts remain — but the general direction is upward.
The market’s next phase will depend on how long monetary easing continues and whether affordability gains translate into lasting confidence among consumers.
Thinking of buying or selling?
Now is the time to make informed property decisions.
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