First-time buyers dominate South African property market in 2025

First-time buyers now make up 72.71% of home loan applications – an increase from 71.34% the year before – suggesting growing confidence among new entrants, according to the latest home loan stats released by MyProperty Home Loans.

The statistics, comparing March 2024 to March 2025, and the results point to significant changes in the South African property landscape.

The stats reveal that most notably, despite financial pressure stemming from the March National Budget, there were also some wins for homebuyers.

The stats show that one of the more positive developments was the increase in the transfer duty exemption threshold. This, coupled with a reduced interest rate and zero transfer duty on properties priced below R1.2 million, has created a more favourable environment for first-time buyers compared to the same time last year.

According to the data, the average purchase price for first-time buyers has risen slightly from R1,188,663 to R1,215,522. Meanwhile, the average bond amount approved jumped significantly from R1,029,192 to R1,567,694.

At the same time, the average deposit required across all buyer categories also saw a sharp increase, rising from R159,471 to R352,173.These figures align with broader market shifts.

The average age of first-time buyers now sits at 39, highlighting a trend towards older South Africans entering the property market for the first time – possibly a result of extended financial constraints or a shift in life planning priorities. Another encouraging sign for buyers is the prime lending rate, which decreased from 11.75% to 11%, offering some relief on monthly repayments.

Additionally, bond approval rates by applicants’ banks edged up slightly, from 52.24% to 52.61%, pointing to a marginally more favourable lending climate.

“The data reflects a resilient property market with first-time buyers leading the charge,” said Michael-Anne Abrahams of MyProperty Home Loans. “With improved lending conditions and increased consumer confidence, now is an opportune time for prospective homeowners to enter the market". With more supportive policies and shifting buyer demographics, 2025 may shape up to be a pivotal year for property in South Africa.

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