The first quarter of 2026 saw a property market shaped by both resilience and shifting dynamics. While home prices continued to climb to record highs across the country, ongoing geopolitical uncertainty placed added strain on affordability. At the same time, new data points to a shift in market activity, with Gauteng gaining momentum as the Western Cape’s dominance continues to soften.
“While the property market entered 2026 on a strong footing, geopolitical tensions created a more challenging economic environment as the quarter progressed. Rising uncertainty placed pressure on inflation expectations worldwide, prompting central banks, including the South African Reserve Bank, to adopt a more cautious approach towards the middle of the year,” explains Adrian Goslett, CEO and Regional Director of REMAX Southern Africa. This sentiment is echoed in the March 2026 BetterBond Property Brief:
“During the first two months of 2026, average house prices reached a milestone, with positive real increases recorded for both first-time buyers (FTBs) and repeat buyers through BetterBond’s origination services…Unfortunately, the monetary policy authorities paused the rate-cutting cycle in their January meeting…due to the double-edged inflationary effect of the higher oil price and the depreciation of the rand.”
Against this backdrop, Goslett notes that affordability has become an even greater priority for buyers. With house prices in the Western Cape sitting at nearly double those of other provinces in South Africa, many buyers appear to be broadening their search to more affordable regions where they can find better value for money. This has contributed to renewed interest in markets such as Gauteng, where comparatively lower prices continue to support demand.
This changing buyer behaviour is reflected in national deeds office data, which shows Gauteng accounting for 50.8% of all property transfers during the quarter, making it the country's most active housing market by volume. The province's strong performance played a significant role in driving South Africa's overall 7.47% increase in units sold, suggesting that buyers are increasingly gravitating towards regions that offer greater affordability and value.
Top Searched Suburbs
Online search behaviour on remax.co.za further reflects changing buyer preferences:
1. Morningside, Gauteng
2. Bryanston, Gauteng
3. La Lucia, KwaZulu Natal
4. Fourways, Gauteng
5. Durban North, KwaZulu Natal
Price remains one of the key drivers behind this shift in buyer interest. According to the Average REMAX Sales Price, the Western Cape's average for Quarter 1 of 2026 was R3,357,917, putting it at 72.1% higher than the average of R1,951,230 across the rest of South Africa. In this context, many buyers are increasingly looking beyond the country's most expensive province, as evident in the top searched suburbs above.
Final Thoughts
"Although affordability challenges and geopolitical uncertainty have created a more complex operating environment, the underlying demand for property remains strong. The first quarter's results suggest that South Africa's property market is not slowing down, but rather evolving, and that adaptability will be a defining feature of the market in the months ahead," concludes Goslett.
For more information, or to get in touch with a trusted real estate advisor from the largest real estate brand in Southern Africa, visit www.remax.co.za.
