South Africa National House-Price Inflation Highest Since 2007

While the Western Cape continues to lead the way in national house-price inflation recovery, the comeback is broad-based, with growth in house prices accelerating across all three major regional markets.

This is according to Andrew Golding, chief executive of the Pam Golding Property group. He highlighted statistics in the Pam Golding Residential Property Index which point to continued recovery in HPI in the Western Cape. This gained momentum in June, rising to +8.3%, while both Gauteng and KwaZulu-Natal continued to rebound strongly, rising to +5.4% and +5.1% respectively, reducing the gap with the Western Cape.

Encouragingly for homeowners and investors, the recovery in national house price inflation (HPI) continues, with the Pam Golding Residential Property Index rising to +7.3% in June 2025, up from a revised +6.9% in May 2025. This is significantly above the two previous cyclical peaks and the strongest growth rate in national house prices since late-2007.

Since late-2024, consumer inflation has remained well anchored at or below the lower limit of the Reserve Bank’s 3%-6% inflation target. As a result, the recovery in national house prices has seen real (inflation-adjusted) growth in house prices increase, rising to +4.3% in June 2025, the ninth consecutive month in positive territory.

Says Golding: “Reviewing the same provinces over the first half of 2025, while national HPI has averaged +6.1%, regional performances range from +7.7% in the Western Cape to +4.25% in KwaZulu-Natal and +4.17% in Gauteng. Notably for KZN, this represents the strongest growth in house prices since 2021, while in Gauteng it matches the post-pandemic rebound.”

According to the Index, house price inflation in all but the upper price band continues to gather momentum. House price inflation in the price band below R1m has outpaced growth in prices in all higher price bands since late-2024.

House price inflation for coastal properties, which Lightstone defines as any property located within 500m of the coastline, continues to outpace the growth in prices for properties located further inland.