HEIBERG ESTATES NEWSLETTER: NOVEMBER 2025

Dear Property Partners

WHERE THERE IS HOPE FOR THE FUTURE, THERE IS POWER IN THE PRESENT!

This year has indeed been a challenging year, but as long as the year ends on a positive note, all is well. As highlighted below, there are a lot of positive signs and hope for our economy as well as for our property market, indicating that 2026 could be a much more exciting and prosperous year.

The G20 summit hosted by South Africa and for the first time hosted on African soil, was hailed a success with a declaration agreed and signed by world leaders attending the summit. This summit and the success thereof were of importance for our country, strengthening it’s international profile and reaffirming South Africa’s position as the Gateway into the African Continent. Not to underestimate the importance of further enhancing collaboration, goodwill and mutual economic goals to unlock foreign investments and fair trade. All being in support of our own economic growth and the unlocking of sustainable jobs. The power of working together and in the true spirit of Ubuntu was highlighted, whilst substantial and exciting new foreign investments in our economic sectors have been announced. Further positive spin-offs from the G20 summit is that it was a powerful catalyst for tourism and for our magnificent wide-ranged property investment opportunities.

Positive news is that the international credit agency, Standard and Poor’s, upgraded our credit rating from BB- to BB with further good prospects, acknowledging Eskom’s more stable electricity provision as well as political stability and progress in the general state of economic affairs in our country. This is the first time in two decades that our credit rating was upgraded, and this will further assist in restoring foreign investment confidence and credibility in our economy. The fact that South Africa has been removed by the Financial Action Task Force (FATF) from the Grey List, following South Africa’s 33 months of reform efforts to strengthen its anti-money laundering and counter-terrorism financing systems, is expected to improve our international financial standing with a far-reaching positive economic impact, also for our estate markets. Fortunately, with the increase in the international gold price, the SA Reserve Bank recently announced that the gold reserves increased by 32% which will also help our government to service and stabilize its debt responsibilities. Business leaders are positive that if this momentum can be kept going, more upgrades of our present debt junk status under the other international credit rating agencies, Moody’s and Fitch, can be expected, with more sustainable jobs created and people’s affordability enhanced to invest in property.

Fortunately, on 20 November the SA Reserve Bank’s Monetary Policy Committee unanimously voted to cut the interest rate by a further 25 basis points, which is the sixth cut in the current cycle and which brings the repo rate down to 6.75% and the prime lending rate to 10.25%. This is a much-awaited and timely stimulus for our property market and will assist the positive momentum that started a few months ago, to be continued into 2026. It reduces the cost of borrowing and makes home loans more accessible, especially in the lower-income group and for first-time buyers, whilst improving both rental yield prospects and capital appreciation potential. It is widely recognised that lower financing costs and a stable microeconomic environment help underpin investment decisions in our property market, especially in residential properties. The cumulative and meaningful interest rate cut cycle of six cuts since last year is making an impact, improving affordability and stimulating Buyers’ interest and sentiment that will lead to a more stable and growing property market in 2026.

As expected for some time now, our inflation target rate was fixed at 3% with a one-percentage point tolerance band from 2% to 4%, bringing South Africa much more in line with advanced economies. This new inflation target is the first change in 25 years, and hopefully it will contribute to macro-economic stability, boost our global competitiveness, and increase investor trust not only in our economy in general, but also specifically in our property market. Although the rand exchange rate immediately made a turn for the positive against foreign currencies after this announcement, economists warn that in the longer run, our economy might pay a huge price if the fiscal and monetary policy is not synchronized. The continued high interest rate limits household spending and affordability, putting immense pressure on people’s ability to buy property, all of which leads to less VAT income for the state coffers, and which has had a direct negative impact throughout our economy since 2023. Economists warn that in spite of the recent six moderate .25% interest rate cuts, the downward pressure on our economic growth rate is hardly decreasing, whilst together with the now fixed 3% inflation target rate, it could indeed further curb economic growth in nominal figures for the foreseeable future.

SA has one of the highest unemployment rates on the globe, and there is a desperate need to create sustainable jobs, especially in our infrastructure and construction industries. Positive news just released by Stats SA is that 250,000 people got jobs during the third quarter, and more than 130,000 of them, in the construction sector. Property developments are labour-intensive and have a positive chain reaction throughout the economy. There are also reports that municipalities are gradually getting their act together, and we all are aware that good, sustainable municipal governance and services are key drivers of stability, property developments, growth, and buyer sentiment to invest in properties – the Western Cape being an excellent example. The Treasury’s latest firm commitment to improve municipal management and service delivery is widely applauded as reliable water-, electricity-, and sanitation services are regarded as fundamentals to property market performance throughout our country.

Our property market is rebounding and looking very promising as there was noticeable progress over the past three to six months, with many more prospective Buyers enquiring, attending showhouses, making offers to purchase, and properties sold successfully! This, to such an extent that for the past few months, Heiberg Estates has been experiencing a huge shortage of residential stock to sell or to rent! So, kindly contact us if you want to sell or let, or know of somebody considering selling! Demand is exceeding supply nationwide, which is a good and positive sign for our property market, and this momentum is expected to continue well into next year. Increased business confidence and growing positive sentiment are also stated as key drivers in our commercial property market, where there is noticeable heightened optimism regarding sales activities and increasing occupancies of present vacant space, expected for next year.

Some of the latest interesting facts and statistics, as follows:

• The latest CPI inflation rate released for October, showed an increase to 3.6% from the previous 3.4%, which is the highest inflation recorded over the past 13 months – key drivers being rising prices in fuel, housing and utilities. The general outlook amongst leading economists for an average inflation rate up to date this year, is 3.13%.
• There are huge and excellent market opportunities for developers to consider for 2026, as it was recently announced that there is an estimated 2.2million backlog in affordable housing. Developers – contact Heiberg Estates for a great, existing development opportunity close to Cullinan/Rayton, for almost 2,000 affordable housing opportunities with a great location!
• There is a visible but mild increase in sales activities in all the commercial property sectors compared with the previous quarter, where a recent FNB report highlights the strongest performer being the Office Market with more and more people returning to a more official/professional Office and Corporate environment. This after being the underperformer for more than a decade, and now being followed by Industrial- and Retails properties.  
• With affordability playing a huge role in home buying, Lightstone reports that over the past 25 years the percentage of homebuyers over 60 has doubled, while those between 35 and 60 have increased from around 50% in 2000 to 70% in 2025.
• Buyers under 35 have dropped from around 45% in 2000 to a mere 30% in 2025 and accounted for 47% of transactions. First-time Buyers are on the decline due to lessening affordability and opting for renting, living with their parents or informal premises.
• The FNB House Price Index reports that property prices appear to be peaking, where they decelerated slightly to 4.9% y/y in October – down from the revised 5.1% recorded in September. Month-on-month prices increased by 0.1%, down from 0.4% and 0.5% in September and August respectively, but still a favourable demand-supply dynamics is recorded.
• Pipeline supply of houses and flats remains weak where year-to-date, building plans approved by municipalities for full title as well as sectional title units, remains to be on the decline. Approved plans for houses declined by 5.7% and for flats and townhouses by 18.2%. The supply of sectional title units however, did increase this year up to date by 21.8% compared to the same period last year, but the volume of houses decreased by 7.3%.
• Further positive news released by ooba is that home loan applications increased by 7% quarter-on-quarter, approval rates rose to 83.9% and prequalifying clients achieved 91% approval rates.
• Property rentals are doing extremely well with strong rental yields recorded in both residential- as well as commercial properties. A recent TPN Vacancy report showed that the average residential vacancy rate was a mere 5.4% – the lowest since 2016!

Our property market is one of the main contributors to our GDP and, as such, will always be a cornerstone of our economy, irrespective of ongoing economic pressures and high interest rates. It will always be recognised as one of the most sought-after investment options and at the centre of financial planning, especially looking at the longer term. Looking at 2026, our property market should be relatively stable with moderate, measured growth expected across all sectors, especially looking at so many positive and contributing factors as highlighted above, which should improve macroeconomic resilience and ongoing positive performance.  As well as creating a favourable and sustainable property environment whilst contribute more impetus and energy, revival and a stimulus for buyers’ confidence to invest in property. Don’t miss this window of opportunity next year – contact your Heiberg Estates Team – whether you are a Buyer or a Seller! We are there for you!

In the true spirit of Ubuntu – we need each other – our country needs us. And where there is hope for the future, there is indeed power in the present.

Your Heiberg Estates Team wishes you, our much cherished and loyal clients, colleagues, and friends,  a wonderful, prosperous, exciting Festive Season and a blessed 2026! Kindly scan the QR-code to visit our website:

Yours truly

Bambie & Heiberg Estates Team