The South African residential property market continues to gain momentum, with Stats SA’s latest Residential Property Price Index (RPPI) revealing a national annual house price inflation of 5,2% in January 2025 – up from a revised 5,1% in December 2024. On a month-to-month basis, house prices rose by 0,4%, signalling a strong start to the new year.
According to the RPPI, the City of Cape Town was the primary driver of annual metropolitan inflation, recording an impressive 8,5% year-on-year increase, contributing 3,1 percentage points to the overall metropolitan inflation rate. In contrast, the City of Johannesburg recorded a modest 2,3% annual increase, contributing 0,5 percentage points.
“Cape Town’s sustained growth reflects high buyer demand, particularly in the upper price brackets and coastal lifestyle segments,” says Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa.
Looking at the trends, some notable outliers include areas like Hout Bay, which has experienced a 49% increase in average sales prices compared to the pre-pandemic market in 2019, going from R3m in 2019 to R4.47m in 2025. Llandudno was a significant outlier, growing by 135% since 2019, from an average of R11.5m to a staggering R27m in 2025.
Apart from the suburbs that are outperforming the national averages, Goslett expressed his optimism following the release of the latest property inflation figures and encourages both buyers and sellers to take advantage of the current market dynamics.
“The latest figures reinforce that South African real estate market is strengthening and prices are starting to rise. This steady yet encouraging rise in property prices suggests that buyers still have a window of opportunity to enter the market while prices remain comparatively accessible, ahead of any potential sharper increases later in the year,” Goslett notes.
Whether you’re a first-time buyer, investor, or seller, understanding the nuances of regional property trends is crucial. “Each suburb will have its own unique trends, which is why it is helpful to partner with a local real estate professional for tailored insights to help you navigate this dynamic environment,” Goslett concludes.
