Gauteng remains the top province for first-time homebuyers in South Africa, accounting for 51% of loans granted by BetterBond to this market segment. Key areas like Johannesburg’s South-Eastern suburbs—including Heidelberg, Vereeniging, and Alberton—are popular due to affordability and proximity to economic hubs. The average bond value in Johannesburg South East is around R1.1 million, which remains below the transfer duty threshold, appealing to new buyers who may lack resources for additional tax costs. Property24 data shows average asking prices in Heidelberg and Vereeniging under R1 million, while Alberton’s is slightly higher at R1.3 million.

Despite high property prices, the Western Cape ranks second for first-time buyer interest, particularly in Cape Town’s northern suburbs, Western Seaboard, and smaller towns. Young professionals favour micro-apartments and mixed developments in central Cape Town for their convenience. The Western Cape has also seen notable price inflation, with average house prices rising by 16.4% over the past year, and has the highest average home loan value at R1.6 million.

This growing demand among first-time buyers is expected to continue as the South African Reserve Bank begins to ease interest rates. Following a 25-basis-point reduction in September, economists anticipate more cuts through 2025. This rate cut cycle, after years of hikes, is likely to stimulate buyer activity further, helping to revitalise the property market. Lower interest rates and accessible entry points in regions like Gauteng and select areas of the Western Cape make the market increasingly attractive to new buyers.