The latest FNB Property Barometer points to a gradual cooling in South Africa's residential property market, with house price growth easing as higher borrowing costs continue to weigh on demand.
Growth Slows: Annual house price growth eased to 5.2% in June, down from 5.7% in May. FNB expects growth to slow further towards 4% by the end of 2026, reflecting softer economic conditions, higher borrowing costs and weaker consumer confidence.
Buyers Remain Price-Conscious: Affordability continues to influence buyer behaviour. While slower price growth may offer some relief, borrowing costs remain an important part of the overall cost of owning a home.
Supply Remains Limited: The supply of homes coming onto the market remains relatively constrained, while new residential development is subdued. FNB's Market Strength Index shows that demand still marginally exceeds supply, with properties taking an average of around 10 weeks and three days to sell.
Rental Market Shows Resilience: The rental market continues to perform relatively well, with national rental inflation reaching 4.1% year-on-year in June.
What This Means: For sellers, realistic pricing is increasingly important as buyers remain mindful of affordability. For buyers, slower price growth could provide more room for negotiation, although securing the right finance remains key.
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