First-time homebuyers are paying an average of R1.48m for houses

Here's how much first-time homebuyers are spending per province. First-time homebuyers are paying more than ever to get onto the property ladder, with the average purchase price reaching a record R1.48 million in October 2026, up 16.4% from the same month last year. This is according to BetterBond’s November Property Brief released on Wednesday. BetterBond’s monthly property briefs provide an overview of the previous month’s market. The latest property brief highlights that South Africa’s property market remains resilient, as the mortgage broker notes that more people are still buying houses, despite incomes growing by an average of 10% a year since 2021. Pressure on first-time buyers Stephan Potgieter, CEO of BetterHome Group Mortgage Origination and BetterBond, said first-time buyers are paying more than ever for their first homes. The average purchase price for first-time buyers reached a record R1.48 million in October, while average monthly incomes climbed to a new high of R58 200. “Despite renewed interest rate pressure, this growing purchasing power is helping first-time buyers sustain their activity in the residential property market,” he added. The average first-time buyer purchase price increased by 16.4% year-on-year, translating into a real increase of 11.9% after accounting for inflation. This is also the highest increase on record. Prices paid by first-time buyers decline in Eastern Cape Potgieter noted that location can make a significant difference to a first-time buyer’s budget. According to BetterBond home loan data, the Eastern Cape was the only region where the average purchase price paid by first-time buyers declined over the past year. In contrast, seven regions recorded house price growth that outpaced inflation, which currently stands at 4.5%. Western Cape remains the most expensive According to BetterBond’s data, the Western Cape remains the most expensive province for first-time buyers, with average prices up 12.7% year-on-year and the average purchase price now above R2 million for the first time. KwaZulu-Natal recorded the second-highest growth at 10%, although its average first-time buyer purchase price remains below the national average. In Mpumalanga, the average first-time buyer purchase price reached R1.4 million. This places it alongside Greater Pretoria as the region with the second-highest average price after the Western Cape. In Johannesburg, the price gap between the North-Western and South-Eastern suburbs widened slightly, with homes in the North-Western suburbs now costing an average of 14.4% more. Deposits Potgieter highlighted that saving for a deposit remains a significant hurdle for many first-time buyers. According to data, the average deposit was just under R200 000 in October, equivalent to 13.4% of the purchase price. However, the burden has eased somewhat in real terms: the average first-time buyer deposit was 7% lower than in the first quarter of 2024, when interest rates peaked. “The deposit-to-purchase-price ratio has also remained slightly below the average recorded during that period,” said Potgieter. Income supports buyer activity Economic advisor to BetterBond, Dr Roelof Botha, said income growth has helped buyers absorb some of the pressure of higher deposit requirements. “A higher deposit also has its advantages, as it can help reduce a buyer’s monthly loan repayment as well as interest payable over the loan period.” In October, the average nominal monthly income of first-time buyers reached R58 200, while the average across all buyers climbed to R76 800, according to BetterBond’s data. Botha highlighted that prospective homebuyers’ ability to increase their incomes at rates well above inflation has been a key driver of residential property market activity during a period of exceptionally high interest rates. More houses being built Potgieter notes that while growing buyer demand does contribute to house price inflation, the delivery of new housing is also an important factor. BetterBond’s latest data shows that, during the first eight months of 2026, the ratio between the value of residential buildings completed and the value of approved plans in metros and larger municipalities fell from 65.8% in 2025 to 56%. However, there are signs of renewed construction activity. The value of residential building plans passed increased by 4.7% year on year to R67.4 billion during the first eight months of 2026. Most of these were in the Western Cape, followed by Gauteng and KwaZulu-Natal. Plans passed for flats and townhouses also increased by 18% year-on-year, reflecting continued demand for this type of housing. “These developments could provide more options for buyers, including first-time buyers looking for a foothold in the property market,” said Potgieter.