HEIBERG ESTATES NEWSLETTER: SEPTEMBER 2025

Spring is in the air, nature is visibly awakening and fortunately also so, there is a noticeable new energy in our SA Property Market that has been very slow-moving for most part of this year, and up to recent times.

We are so grateful for all your support as we experienced a record September in prospective investors reaching out, a growing number in show house attendances and numerous viewings. This resulting into super and successful sales, for which we sincerely thank both our Seller and our Buyers. But before getting too excited, we have to take into account that to a big extent the recent experienced buoyancy and continuation thereof in our property market, will rest on continuous improvement, growth and job creation in our broad-based economy.

Unfortunately the SA Reserve Bank did not further lower the interest rate this month, leaving the repo rate unchanged at 7% and the prime rate at 10.5%. The inflation rate for July was recorded respectively at 3.5% and at 3.3% in August, which is positive news whilst economists predict that the average annual inflation rate for the next five years, will be around 4.2%. The fact that the American FED lowered their interest rate recently and with their low inflation rate around 2%, was in support of their economy and also in their bid to curb unemployment. This also bodes well for our Rand/Dollar exchange rate and as already observed.

We are all aware that the existing economy, interest- and inflation rates as well as general real estate market conditions, shape Buyer and Seller leverage. With demand increasing as is the norm towards the end of the yearly property cycle, we are experiencing that our real estate market is visibly picking up to favour Sellers, due to bigger demand than available stock.  It is gradually changing from a Buyer’s to a Seller’s market, which will give the latter more strategic negotiation advantages with lessening stock, increasing prices and growing Buyer’s interest. We are experiencing stock supply shortages in all property segments, whilst with the increase in interest to buy property, Buyers have less stock to choose from and are willing to pay market-related prices.

There might not be any more interest rate cuts this year, and it is predicted that our interest rates will hold steady for some time to come. This scenario will contribute to potential property investors ability to do proper financial planning when buying a property. But, not to forget that since Covid-19 when in 2020 our prime lending rate was 7% and with our present prime lending rate at 10.5%, the interest rate is still well above pre-pandemic levels. It remains to be a general constraint on Buyer’s ability to afford property, especially in the lower price ranges.

Commercial property is also rebounding strongly with higher yields, longer leases, and lower vacancies recorded, not only because of some of the above factors mentioned, but also due to the easing of load-shedding and efforts to improve Municipal services around our country. Increasingly, property investors realize that both residential- as well as commercial properties, offer good long-term returns and investment diversification. Especially focusing and aligning with well-located and easy accessible property locations where there is ongoing growth and development amidst emerging new growth nodes.

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

• SA is by far Africa’s richest country with Johannesburg and Cape Town ranking as Africa’s two wealthiest cities as recorded in the Africa Wealth Report of 2025. SA is home to 41 100 millionaires which is representative of 34% of Africa’s millionaires. Johannesburg with Sandton, Bryanston and Johannesburg South which are the best suburbs to buy property – remains to be Africa’s richest city, with 11 700 resident millionaires. Also very popular is Steyn City as well as Waterfall Equestrian Estate, offering exclusive lifestyle estates, attracting local as well as foreign property investors.
• Cape Town and surrounding West Coast areas, will always be popular amongst foreign property investors, and the Mother City accommodates 8 500 millionaires as well as a number of centi-millionaires with individuals worth more than USD100million+. Cape Town is our most expensive prime property market and averaging a price of more than R100 000/m² in sought-after areas like Clifton and Bantry Bay.
• In Pretoria, where there is an ongoing strong demand in high-end areas that attract high net-worth families, diplomats and corporate executives, the most popular areas like Waterkloof, Waterkloof Ridge, Mooikloof and Silver Lakes. Lately a trend of reverse semigration back to Pretoria has been noted, due to better affordability of properties in all sectors, better job opportunities and upmarket lifestyle- and security estates/boomed-off areas.
• There is very positive movement in our rental markets as well, where the average rent on residential properties continues to increase by more than inflation (5%) as recorded during the second quarter year-on-year which is great news for property investors. Fewer of 17% of tenants are now in arrears – the lowest ever recorded on the PayProp Rental Index.
• There is a visible trend of South Africans whom preferred to buy free-standing homes, now settling for sectional title properties. Lightstone data shows that sectional title registrations have increased by 40% year-on-year and by 50% quarter-on-quarter. Urban influx plays a major role in this trend due to densification and as a stimulus for medium- to high rise developments. Especially looking at vacant office blocks with good, central locations that are being converted into sectional title units that comes much cheaper/m² than newly built residential blocks of flats and affordable for especially first buyers across our country’s major CBD’s. At least these units offer property investment opportunities in the lower price ranges to set right some of the imbalances in the affordable housing sector.
• FNB’s Property Broker Survey reports that nationally 19.3% of Buyers are acquiring office assets with the intention of converting to residential units or for mix-use developments. The highest conversion rate is in Johannesburg with 38.1%, followed by Nelson Mandela Bay at 17.1%, Pretoria at 14.9%, Cape Town at 4.6% and eThekwini at 1.3%. An outstanding office block development opportunity for Developers in this niche market that Heiberg Estates can offer, is located in the Pretoria CBD and overlooking Church Square, so contact us any time: https://za.fusionagency.net/Fusion/Listings/Capture?officeId=894&listingId=4254611&isSharedContext=False
• A recent Rode Report supports the above trend in referral to the fact that there is a decline in the oversupply of these type of buildings where the national office vacancy rate dropped from about 18% in 2022 to 12.8% as recorded during the first quarter of this year.
• With sectional title units especially located in security estates, the move is towards compact living, better security, less maintenance, less Municipal costs and a sense of community living.
• Gauteng leads the way for sectional title sales and accounts for more than 50% of national sales, followed by the Western Cape and KZN with respectively 18% and 14% of sectional title sales.

Some economists have expressed concern regarding a potential period of economic stagflation, which should it become a reality, could be another force to be taken into account in the future. But if so, and with the effect that it will also furthermore put pressure on the equity market, we all are aware that real estate is an effective and internation recognised way of protecting your hard-earned money. Our SA Property Market has been resilient for some years now in spite of so many headwinds. With the latest new momentum noted and with consistent increases in sale volumes and sale prices, we are hopeful for the remainder of this year that should record good sale volumes across the board with moderate price increases.

Myself and the Heiberg Estates Team, are always at your service and happy to share a collective 50+years property experience with you and to your advantage – whether you are a Seller or a Buyer – so please contact us without delay! Kindly scan the QR-code to visit our website:

Our very best and kind regards

Bambie & Heiberg Estates Team