First-time buyers now pay a record R1.48m for a home
People buying their first home paid a record average of R1.48m in October, up 16.4% on a year earlier, according to BetterBond data.
Getting a foot on the property ladder is costing South Africans more than ever. The Citizen reported that first-time homebuyers paid R1.48 million on average in October 2026, a record high and 16.4% more than in October 2025.
The figures come from BetterBond’s November Property Brief, which was released on Wednesday. After adjusting for inflation, the rise works out to 11.9%, which BetterBond says is the steepest increase it has recorded.
Incomes and deposits
BetterBond says buyers are coping partly because earnings have grown. First-time buyers earned an average of R58 200 a month in October, a new high, while the average across all buyers was R76 800. Incomes have been growing at roughly 10% a year since 2021, well ahead of inflation, which is currently 4.5%.
The typical deposit was just under R200 000, or 13.4% of the price. Adjusted for inflation, that is 7% lower than in the first quarter of 2024, when interest rates peaked. BetterBond’s economic advisor, Dr Roelof Botha, noted that a bigger deposit can lower monthly repayments and the total interest paid over the life of a loan.
How the regions compare
Where you buy makes a big difference. The Eastern Cape was alone in seeing first-time buyers pay less than a year earlier, while seven regions recorded price growth above inflation.
- Western Cape: still the priciest province, with prices up 12.7% and the average passing R2 million for the first time.
- KwaZulu-Natal: growth of 10%, the second highest, although its average stays below the national figure.
- Mpumalanga and Greater Pretoria: both about R1.4 million, the second-highest level after the Western Cape.
- Johannesburg: homes in the North-Western suburbs cost 14.4% more on average than those in the South-Eastern suburbs, a gap that widened slightly.
Is more housing coming?
BetterBond’s CEO, Stephan Potgieter, said that demand is only one driver of prices and that the supply of new homes matters too. In the first eight months of 2026, the value of completed residential buildings relative to approved plans in metros and larger municipalities dropped to 56%, from 65.8% in 2025.
There are signs of a pick-up, though. The value of residential building plans passed rose 4.7% year on year to R67.4 billion over the same period, mostly in the Western Cape, Gauteng and KwaZulu-Natal. Plans for flats and townhouses climbed 18%. Potgieter said these projects could give first-time buyers more options.
What this means for buyers
- Budget for a deposit of around 13% of the price, although it is possible to buy with less.
- Compare areas, since prices differ widely between and within provinces and cities.
- Look at flats and townhouses, where new building is increasing.
This story is based on reporting by The Citizen.
