FOR IMMEDIATE RELEASE
August 2025
First-Time Buyers in 2025: Challenges and Opportunities in South Africa’s Property Market
By Jonathan Acutt, Managing Director – Acutts Real Estate
South Africa – As the South African residential property market evolves, first-time buyers in 2025 are finding themselves at a complex crossroads. With higher interest rates, tighter lending criteria, and an economy still recovering from inflationary pressures, aspiring homeowners are navigating more than just house hunting—they’re navigating an entirely new property landscape.
Yet despite the headwinds, opportunities still exist for those who are informed, financially prepared, and willing to adapt.
“Affordability may be stretched, but if you can secure a loan at a great interest rate and plan for a 3–5-year horizon, this could still be a smart time to enter the market,” says Clint Landsberg, a property consultant with Acutts in Durban.
Banks remain cautious but open, with some still offering 100% home loans to qualified buyers. Government-backed assistance through programmes such as FLISP (Finance Linked Individual Subsidy Programme) continues to support lower- to middle-income earners, although many are calling for its expansion and simplification.
Smaller, smarter homes are leading buyer preferences, particularly in secure estates and sectional title developments. Buyers are prioritising properties with fibre connectivity, backup power systems, and water-saving features. In response, developers are innovating with more compact, energy-efficient designs aimed specifically at the first-time buyer market.
Rent-to-own and flexible lease models are also gaining traction, especially among younger professionals delaying purchase decisions. However, with rental inflation outpacing wage growth in many urban areas, the argument for early entry into the property market remains strong.
“The goal isn’t just to get onto the property ladder, it’s to stay on it. That’s where good advice and good planning come in,” adds Acutt.
First-time buyers are encouraged to obtain bond pre-approval, budget carefully beyond the bond (considering rates, levies, and maintenance), and work closely with qualified agents who understand the nuances of the current market.
Despite a more cautious environment, the fundamentals of property ownership remain sound. In 2025, owning a home still offers long-term value, stability, and a personal investment in the future, especially for those prepared to approach the market with insight and strategy.
Media Contact:
Ashleigh Perry-Steenkamp
Head Office Manager – Acutts Real Estate
marketing@acutts.co.za | +27 (0)31 396 2969
