Gauteng is South Africa’s most popular province for first-time homebuyers, with BetterBond granting 51% of its loans in this region, especially in Johannesburg’s South-Eastern suburbs like Heidelberg, Vereeniging, and Alberton. These areas offer affordable property options, with average bond values around R1.1 million—just under the transfer duty threshold, appealing to new buyers who may have limited resources to cover additional costs.

The Western Cape ranks as the second most popular province for first-time buyers despite high property prices. Demand remains strong, and average property prices in the Western Cape have increased by 16.4% over the past year, marking it as the top performer in home loan value with an average loan of R1.6 million. In Cape Town, first-time buyers are gravitating toward accessible northern suburbs, the Western Seaboard, and central city micro-apartments, which appeal to young professionals for their convenience. Smaller towns outside Cape Town also offer larger, more affordable properties, drawing families looking for value.

South Africa’s interest rate cuts are encouraging first-time buyer growth. After a cumulative rate increase of 475 basis points from 2021 to mid-2024, the Reserve Bank recently reduced rates, with further cuts anticipated through 2025. This has led to a 10% reduction in deposit requirements, potentially stimulating increased buyer activity. With lowered costs and demand for affordable areas rising, first-time buyer numbers are expected to keep boosting the property market’s revival as rates decrease.