South Africa’s residential property market continued to show strong growth in 2025, with buyers willing to pay top prices for homes in the country’s most desirable suburbs, according to new… The post High-End Homes Drive Growth in SA Real Estate appeared first on Radarr Africa.
South Africa’s residential property market continued to show strong growth in 2025, with buyers willing to pay top prices for homes in the country’s most desirable suburbs, according to new data from property analytics firm Lightstone. Total residential transaction values rose sharply, hitting R276 billion between January and October 2025, a 12.5% increase year-on-year, despite the overall number of homes changing hands remaining largely unchanged. Analysts attribute this surge to rising property prices rather than higher sales volumes, particularly in the upper end of the market, where demand for luxury homes remains strong.
Lightstone’s report, which analysed full-title property sales ranging from R30,000 to R50 million, shows that affordable homes still account for the bulk of transactions. Properties priced below R1 million represented 49% of all sales, while homes between R1 million and R2.5 million made up another 35%. Homes selling above R2.5 million accounted for 16% of transactions, with luxury properties over R5 million representing just 4% of total sales. Despite being a small fraction of the market, the high-end segment drives much of the market value and attracts significant attention from investors.
Geographically, three provinces dominated sales activity. Gauteng led in transaction volumes with 40% of all sales, followed by the Western Cape at 27% and KwaZulu-Natal at 11%. However, when considering transaction values, the Western Cape clearly leads the market. While accounting for just over a quarter of total sales, the province represented 46% of all transactions involving properties over R2 million. Average prices in the Western Cape’s luxury segment reached just over R4.6 million, ahead of KwaZulu-Natal at R3.6 million and Gauteng at R3.5 million.
The analysis also highlights the most enviable suburbs, where buyers pay a premium for lifestyle, security, and exclusivity. Coastal and lifestyle-focused areas continue to attract the highest prices. Bantry Bay in Cape Town recorded the highest single property sale in the first ten months of 2025 at R48 million, followed by Bishopscourt at R46 million and Llandudno with an average price of R23.6 million. Other top suburbs include De Zalze Golf Estate (R35 million max price), Steyn City in Gauteng (R33 million), and Simbithi in KwaZulu-Natal (R32.5 million). St Francis Bay in the Eastern Cape also stood out, recording the highest sale outside Cape Town at R37 million.
Average prices in high-activity suburbs further illustrate the premium buyers are willing to pay. Llandudno topped the list nationally at R23.7 million, more than double Westcliff in Gauteng (R9.8 million) and nearly four times Zimbali in KwaZulu-Natal (R6 million). St Francis Bay led the remaining provinces at R5.5 million. The data shows that location, lifestyle amenities, security, and exclusivity remain key drivers for South Africa’s luxury property market.
Demographic trends also reveal interesting patterns. Non-natural buyers, including companies and trusts, accounted for 17% of transactions, up slightly from 16% in 2024, while first-time buyers represented 37%, down from 40% the previous year. Younger buyers aged 30 to 45 typically paid just under R1.4 million, while older buyers aged 60 to 90 paid the highest averages of around R1.8 million.
The 2025 data shows that while the luxury market is small in volume, it dominates transaction values and continues to attract both local and international investors. The Western Cape, particularly Cape Town’s premium suburbs, remains South Africa’s most sought-after region for residential property investment, while Gauteng and KwaZulu-Natal retain strong sales volumes at mid-market levels. Analysts say these trends indicate confidence in prime real estate, with buyers prioritizing long-term value, lifestyle, and security.
As South Africa moves into 2026, industry observers expect continued interest in luxury coastal suburbs, growing demand for secure estates, and steady price growth in prime locations, even as more affordable housing continues to drive the majority of sales nationwide.
The post High-End Homes Drive Growth in SA Real Estate appeared first on Radarr Africa.
