Optimism returns to SA's housing market

Rate cuts are starting to have an impact

- By RHYS DYER

THE QUARTER 3 2025 (Q3 '25) home loan statistics released by home loan comparison service, ooba Home Loans, reflect a growing sense of optimism within the local housing market.

South Africa's housing market is gradually responding to the current rate-cutting cycle. With the prime lending rate now at 10.5%—a full percentage point lower than in Q3 '24—home buying affordability challenges are easing, helped along by subdued inflation and lower fuel prices.

The latest lending data released by ooba Home Loans shows that South Africa's banks continue to play a pivotal role in homeownership accessibility through innovative home loan solutions. The banks' unfaltering confidence in the property market is evident in their ongoing competitive lending behaviour.

Application volumes gain ground, loan values rise

Home loan applications in Q3 '25 were up 4% on Q3 '24 and up 7% on Q2'25, reflecting steady growth. This subdued growth is largely due to the effects of a challenging economic climate, marked by still high unemployment and broader global uncertainty.

Although application volumes have not surged in response to the lower rates, the total value of home loan applications received in Q3 '25 has grown by 10% year-on-year and 6% quarter-on-quarter, reflecting the impact of higher bond values driven by customers purchasing higher-priced properties.

Bank approval rates edge up

The latest oobarometer statistics reveal an uptick in successful home loan applications from the previous quarter.