Property Brief – February 2025
The latest BetterBond Property Brief – February 2025 is out!
The year 2025 has started with strong signs of recovery in the residential property market. This is supported by stabilising home loan activity and improving economic conditions. The recent interest rate cuts are renewing confidence among homebuyers, with home loan applications in January up 7.5% compared to the same period last year.
The average home purchase price has seen a 4.1% year-on-year increase, while first-time homebuyers have experienced even higher growth at 7.3%. However, the tightening of deposit requirements poses a challenge, particularly for first-time buyers, as banks adopt a more cautious lending approach amid rising credit impairments.
On a positive note, homebuyer incomes continue to rise at a strong pace, supporting affordability in the market. The number of home loans granted has rebounded impressively, with several regions experiencing double-digit growth.
The full list of data points included in this Property Brief, is as follows:
- BetterBond index of home loan applications
- Average home purchase price
- Average deposit for home purchase
- Key residential property market metrics confirm recovery
- Percentage share of home loans per home price bracket (12 months to January 2025)
- Year-on-year percentage change in average home purchase price
- Average monthly incomes – all buyers and FTBs
- Year-on-year percentage change in home loans granted (12 months to January 2024/25)
In the Economist’s Notes, Dr Roelof Botha explains that January’s property market was shaped by two key events: a third cut in the repo rate and the signing of the new Expropriation Act. Despite initial concerns, he highlights strong constitutional protections for property owners. In addition, Dr Botha points out that improving private-sector employment and rising salaries are boosting household resilience, while global economic shifts continue to influence market dynamics.
Missed last month’s insights? Read the January 2025 BetterBond Property Brief here.
Property Brief February 2025 Download