In the second quarter of 2024, South Africa’s housing market experienced muted growth as property owners awaited the outcome of the national elections. Despite this, there was a 7% increase in listing prices, suggesting improved confidence in the market. According to RE/MAX of Southern Africa CEO Adrian Goslett, market activity remained subdued due to uncertainties surrounding the elections. However, registered sales data, reflecting transactions from previous months, showed a 4.95% increase in the national average sales price, reaching R1 134 512, slightly above the annual house price inflation rate of 3.66%.

The market’s weak conditions were also evident in the building sector. Statistics South Africa reported a 13.4% decline in the value of building plans passed during the first half of 2024 compared to the same period in 2023. Residential buildings saw a significant decrease of R3.57 billion, while non-residential buildings and additions/alterations also dropped by R1.88 billion and R1.81 billion, respectively. The value of completed buildings fell by 17.2%, with residential buildings declining by R2.98 billion.

Goslett noted that the second quarter had been marked by a reduction in available property listings, down by 34% year-on-year on the RE/MAX platform. This scarcity of stock could lead to rising prices if demand continues to grow, especially with potential interest rate cuts in September making homeownership more affordable. Despite these challenges, the market shows signs of resilience, with certain areas beginning to see price increases.