South Africa's Residential Property Market Analysis 2025

South Africa's housing market remains under pressure, hindered by subdued demand, persistently high unemployment, and a sluggish economy. The situation has been further compounded by rising global socio-economic uncertainty, fueled by U.S. tariff policies and escalating geopolitical tensions and conflicts worldwide.

Table of Contents

• Housing Market Snapshot
• Historic Perspective
• Demand Highlights
• Supply Highlights
• Rental Market
• Mortgage Market
• Socio-Economic Context

Housing Market Snapshot

The Repeat Sales House Price Index rose by a modest 2.2% in April 2025 as compared to the same period last year, according to figures released by the First National Bank (FNB). It was the highest year-on-year price growth seen since April 2023, but still far lower than the average price increase of 5% recorded from 2012 to 2022.

In fact, when adjusted for inflation, prices actually declined slightly by 0.59% over the same period. Real prices have been falling since May 2021.

South Africa's house price annual change:

Data Source: First National Bank.

Demand continues to fall, with transaction volumes still about 16% below pre-pandemic levels, which indicates a protracted recovery in market activity, according to FNB in its April 2025 Property Barometer report.

The time-on-market, which refers to the number of days a property has been for sale from the listing date to the date the contract is signed, increased to 12 weeks and one day in Q1 2025, up from 11 weeks in the previous quarter and less than 10 weeks in 2022.

South Africa's housing market has been sluggish over the past several years, mainly due to high unemployment, weak household finances, and an underdeveloped mortgage market. From 2007 to 2021, house prices rose by about 69% but when adjusted for inflation, real prices actually fell by 19%.

Then, in 2022 and 2023, nominal house prices rose by a cumulative 5.6% but declined by 7.4% in real terms. With persistently high inflation during those years, the gap between nominal and real prices has dramatically widened. In 2024, house prices increased by a meager 1.2% from a year earlier and actually fell by 1.7% when adjusted for inflation.

The broader economy continues to underperform. After registering a post-pandemic growth of 5% in 2021, South Africa's economic growth slowed to 1.9% in 2022, amidst the fallout of the war in Ukraine, coupled with several domestic setbacks, such as floods and an energy crisis. The economic slowdown continued over the next two years, with real GDP growth decelerating to just 0.7% in 2023 and 0.6% in 2024, reflecting persistent structural and external pressures on the economy.

"The domestic economy expanded by 0.6% in 2024. The modest expansion was underpinned by steady growth in household spending, with support from government consumption and the foreign sector. Investment detracted from total output last year," said SARB's April 2025 Monetary Policy Review.

South Africa's economy remains weak this year. The economy expanded by a meager 0.8% y-o-y in Q1 2025, at par with the previous quarter but a slowdown from an expansion of 1.6% a year earlier. Quarter-on-quarter, the country recorded just 0.1% growth in Q1 2025, mainly caused by contractions experienced in manufacturing and mining and quarrying, which declined by 2% and 4.1% respectively, amidst persistent inefficiencies in the country's vital infrastructure.

Recently, SARB lowered its 2025 economic growth forecast to 1.2%, from its initial estimate of 1.7%, amidst heightened global economic uncertainty. The International Monetary Fund (IMF) offers an even more cautious outlook, projecting a meager growth of 1% this year before improving slightly to 1.3% in 2026.

South Africa is Africa's second-biggest economy. With a population of 63.2 million and a GDP per capita of US$6,332 in 2024, it has formidable manufacturing and financial sectors. It is the world's largest exporter of gold and platinum. Tourism is also a key source of foreign exchange.

Historic Perspective:

Recalling the boom years

During South Africa's housing boom (from 2000 to 2006), house prices rose by an average of 20% annually. These price rises peaked in October 2004 with 35.7% annual growth (32.5% in real terms), according to ABSA.

The boom was driven by 4 main factors:

• The emergence of a financially stable black middle class, which had a tremendous impact on housing demand, was encouraged by individual tax reliefs in the context of a growing economy.
• South Africans who had parked money offshore during the Apartheid era were allowed (and required) to bring it back by September 2004. Much of this money went into property.
• Better stability and security helped. During Apartheid and its sequel, property prices had lagged badly behind the economy, as the security situation went from bad to worse.
• Lastly, the Financial Sector Charter in 2003 boosted mortgage loan growth. Financial institutions committed to providing ZAR 42 billion (US$2.33 billion) of housing finance to the low-income market. Then in 2006, the CGT exemption on primary residences was raised from ZAR 1 million (US$55,457) to ZAR 1.5 million (US$83,186). Transfer duties on properties were lowered, too. For example, no transfer duty is payable on properties valued at ZAR 500,000 (US$27,729) or less.

However, the boom ground to a halt following the global financial crisis. From 2008 to 2009, house prices fell by 3.2% (-16.5% in real terms). Aside from the global crisis and rising interest rates, the decline in prices was prompted by the implementation of the National Credit Act in mid-2007, which aimed to protect borrowers from over-indebtedness by limiting the amount of funds that can be borrowed and requiring every lender to assess borrowers' creditworthiness. It requires lenders to disclose every term in the contract and gives borrowers the right to request their credit report and to challenge the report if there are inaccuracies. The act has tended to reduce the supply of mortgage loans.

The housing market rose a little in 2010, encouraged by South Africa hosting the 19th FIFA World Cup, and from 2011 to 2019, house prices rose by almost 51%. But after the ravages of inflation are deducted, that works out at a meager 0.4% growth in real terms.

House prices rose by a total of 8% in 2020 and 2021, amidst the Covid-19 pandemic. Yet when adjusted for inflation, prices actually declined by 1.1% over the same period. During 2022, nominal house prices rose by a modest 3.2% but fell by 4% in real terms.

The housing market remained weak since, with house prices increasing by a minuscule 1% (-4% in real terms) in 2023 and by just 1.2% (-1.69% in real terms) in 2024, amidst a struggling economy.

Demand Highlights:

Market activity remains weak, but there are few signs of optimism

Demand remains subdued, with residential transaction volumes in South Africa still significantly lower by around 16% as compared to the pre-pandemic levels.

The time-on-market, which refers to the number of days a property has been for sale from the listing date to the date the contract is signed, increased to 12 weeks and one day in Q1 2025, up from 11 weeks in the previous quarter and less than 10 weeks in 2022. Though it is still slightly below the long-term average of around 13 weeks.

"Deeds Office data indicates that transaction volumes remain significantly (approximately 16%) below pre-pandemic levels (4Q19), suggesting a protracted recovery in market activity," said FNB in its April 2025 Property Barometer report. "Estate agents report a surge in positive sentiment, with activity ratings reaching a three-year high in 1Q25. However, market outcomes are still modest, as reflected in slow transaction volumes growth and slightly longer selling times (from 11 weeks in 4Q24 to 12 weeks and one day in 1Q25)."

"The divergence between positive sentiment and market outcomes suggests lingering caution among buyers, potentially due to the ongoing impact of the pandemic-induced cost-of-living crisis, further exacerbated by global uncertainty," added the FNB report.

The outlook for the SA housing market points to a divergent performance: affluent segments are likely to experience slower sales and stagnant prices, a consequence of declining consumer confidence amid global and domestic uncertainties. Conversely, the demand for more affordable housing is poised to strengthen, potentially driven by anticipated interest rate cuts from the South African Reserve Bank and a prospective increase in the transfer duty threshold.

"The recent dip in consumer confidence due to heightened global and domestic uncertainty is likely to disproportionately impact the affluent segments, potentially leading to slower sales and price stagnation," said FNB.

"In the lower-priced segments, potential interest rate cuts by the South African Reserve Bank and a potential 10% increase in the transfer duty threshold could stimulate demand. These factors suggest a potential shift in demand towards more affordable housing options amid increased uncertainty," noted FNB.

Foreign home buying remains muted

Given South Africa's economic stagnation, aggravated by the Covid-19 pandemic and the global economic and geopolitical uncertainty, it is maybe not surprising that home-buying by foreigners has declined in recent years, even though property in South Africa is now dramatically less expensive for foreign buyers than a decade ago.

Even taking into account the recent appreciation of the rand on the back of higher metals prices, the value of the local currency remained about 62% lower against the US dollar from January 2011 to May 2025, falling from US$1 = ZAR 6.943 to US$1 = ZAR 18.117. Yet foreign homebuyers represent only 3.7% of total home buying in South Africa, significantly down from its peak of 6.5% in 2008.

Inbound demand (i.e., from foreigners buying property in South Africa as well as from South African expats buying property locally) has remained comparatively subdued in recent years.

FNB attributed this to:

• Weak investor sentiment towards South Africa, due to the country's multi-year economic stagnation
• Uncertainty about the country's future economic policy
• Negative news, such as credit rating downgrades to "junk status"

Most foreign owners in South Africa are based in Europe, mostly in the United Kingdom, as well as Germany, Italy, the Netherlands, and France. There are also buyers from African countries such as Mozambique, Zimbabwe, Angola, Cameroon, and Nigeria. Some homebuyers from China and Dubai are also eyeing properties in the KwaZulu-Natal and the Durban area, according to Craig Hutchison, chief executive of Engel &Völkers Southern Africa.

Foreigners can own immovable property in South Africa without restriction. However, all foreign funds remitted to the country must be declared and documented. The property must also be endorsed 'non-resident', as a condition for repatriation of funds.

Non-resident investors have to pay Capital Gains Tax when they later sell their properties. The purchaser of the property is required to deduct a prescribed percentage from the proceeds of the sale and remit it directly to the South African Revenue Service before paying the balance to the seller.

Supply Highlights:

Residential construction activity continues to fall

Residential construction in South Africa remains depressed. During 2024, the total number of residential building plans approved dropped by 11.7% y-o-y to 32,674 dwelling units, following annual declines of 25.8% in 2023 and 4.3% in 2022, according to Statistics South Africa (Stats SA). Likewise, residential dwelling completions were down by a huge 22.9% to 22,764 units last year, following a contraction of 11.3% in 2023 and a modest growth of 2.1% in 2022.

The weakness of the housing market continued this year, with both residential approvals and dwelling completions falling further in the first quarter of 2025.

For residential building approvals:

• For houses measuring less than 80 sq. m, approvals fell slightly by 1% y-o-y to 1,471 units in Q1 2025.
• For houses measuring 80 sq. m and above, approvals were down slightly by 0.5% y-o-y to 2,515 units in the first quarter of 2025.
• For flats and townhouses, approvals dropped by a whopping 27.2% y-o-y to 2,954 units over the same period.

For residential completions:

• For houses measuring less than 80 sq. m, completions fell slightly by 0.9% y-o-y to 1,171 units in Q1 2025.
• For houses measuring 80 sq. m and above, completions were down by a minimal 0.7% to 1,480 units in Q1 2025 from the same period last year.
• For flats and townhouses, completions plummeted by 32.5% y-o-y to 1,932 units over the same period.

"Currently, our market strength indices show both demand and supply in negative territory. Declining demand is to be expected under the high interest rate and low consumer confidence environment. On the supply side of the equation, we suspect that the index largely reflects the decline in construction of new housing units, in response to lower demand," said FNB.

"It is also possible that the unfavourable selling conditions, characterised by diminished affordability and tighter lending standards, are causing some homeowners to re-evaluate their decisions," added FNB.

Rental Market:

Rental yields are very good

Despite all these, from one perspective, property owners should be happy. The gross rental yields for apartments in South Africa, i.e., the gross rental return on a property if fully rented out, are spectacularly high, at an average of 10.36% in Q2 2025, up from 9.96% in Q4 2024 and 10.15% in Q1 2024, according to a recent research conducted by the Global Property Guide.

In Johannesburg, apartments offer rental returns ranging from 9.15% to as high as 16.37% in Q2 2025, with a city average of 11.38%. The most desirable neighborhoods in Johannesburg are in the north of the city, including suburbs like Dunkeld, Hyde Park, Houghton, Illovo, Inanda, Melrose, Parkhurst, Parktown, Parkview, Sandhurst, Saxonwold, and Westcliff. Nelson Mandela has a house in Houghton.

In Cape Town, gross rental yields on apartments are lower, currently ranging from 7.19% to 12.15%, with a city average of 9.42% in Q2 2025.

Cape Town is the most popular tourist destination in Africa. Its amazing beaches and weather are ideal for retirees and foreign property buyers. Atlantic Seaboard properties are among the most sought-after because of the beaches and cliffs - upscale neighborhoods like Bakoven, Bantry Bay, Camps, Clifton, Fresnaye, Green Point, and Mouille Point. Some houses nestled on cliffs have sweeping views of the Atlantic Ocean. City Bowl, which includes the central business district of Cape Town, is another upscale residential suburb. It is one of the most stable residential markets in Cape Town because of its prime central location and vibrant cosmopolitan lifestyle.

In other locations:

• In Durban, gross rental yields for apartments currently range from 8% to 13%, with a city average of 10.68%.
• In Centurion, gross rental yields for apartments range from 10.25% to 13.03%, with a city average of 11.98%.
• In KZN South Coast, apartment rental yields range from 10.54% to 11.08%, with a city average of 10.73%.
• In Dolphin Coast, apartment rental yields are relatively lower, ranging from 6.64% to 8.94%, with an average of 7.98%.

South Africa's rent price index:

Data Source: OECD.

Mortgage Market:

Mortgage interest rates falling, amidst SARB's recent rate cuts

In May 2025, the South African Reserve Bank (SARB), the country's central bank, slashed its benchmark repo rate by 25 basis points to 7.25%, its fourth consecutive rate cut since September 2024, in an effort to buoy economic activity amidst easing inflationary pressures.

South Africa's mortgage loan interest rates:

Data Source: The South African Reserve Bank.

"To ensure growth is more robust and resilient to shocks, domestic investment needs to rise significantly to rebalance the economy and complement household consumption spending. Investment and output growth can be boosted further by adopting policy measures that permanently lower inflation risk and strengthen competitiveness," said the central bank.

Prior to the policy shift, the central bank implemented ten straight rate hikes in less than two years from November 2021 to May 2023, in an effort to rein in inflationary pressures.

"The MPC's main contribution is to deliver low and stable inflation, with well-anchored inflation expectations," reiterated the central bank. "We also recommend additional measures that would improve economic conditions. These include reaching a prudent public debt level, further repairing and strengthening network industries, lowering administered price inflation, and keeping real wage growth in line with productivity gains."

Amidst the central bank's successive rate cuts, mortgage interest rates are now noticeably falling. In 2024, the flexible rate on mortgage advances fell to 10.9%, from 11.45% in the previous year. Likewise, the fixed rate also declined to 10.07%, from 10.27% over the same period.

Currently, the predominant rate on new mortgage loans stands at 11%, down from 11.75% a year earlier but still far higher than the single-digit interest rates seen from 2020 to 2022.

Housing loans rising modestly, size of the mortgage market remains steady

Housing loans continue to rise modestly, amidst declining interest rates as well as an increased willingness of banks to provide loans to prospective borrowers. In April 2025, total mortgage advances rose by 3.52% y-o-y to about ZAR 1.9 trillion (US$105.7 billion), according to figures from SARB.

"Loan-to-price ratios, a proxy for loan-to-value, have continued to rise, suggesting willingness by lenders to finance a bigger proportion of the purchase price," said the FNB. "....the surge in LTPs predates the pandemic - it began in 2017 - and is largely attributed to intense competition among lenders in a thin volume market."

This is supported by other local market experts. "Property ownership is now more accessible... Potentially, renters may be able to buy a home at a lower monthly cost than their current rental payment," said Rhys Dyer, chief executive of home loan comparison service firm, Ooba.

However, the housing loan growth is notably slower in recent months. During 2024, housing loans increased by 3.1% from a year earlier, a deceleration from an annual average growth of 4.6% in 2009-23, and far lower than the average growth of 21% in 2002-08.

Overall, the size of the mortgage market relative to GDP remains more or less steady. As a percentage of GDP, the mortgage market stood at around 25.7% in 2024, almost unchanged in the past eight years but still down from an average of 34% of GDP in 2009-2011.

"Over the last ten years, the mortgage market has not made notable expansions, but instead has remained fairly steady, at an average of 122,000 bonds issued a year," said the Centre for Affordable Housing Finance in Africa (CAHF).

Socio-Economic Context:

Household finances are troublingly weak, aggravated by high unemployment

Many households in South Africa are under financial strain because of slow economic growth and low employment levels. The net household savings rate stood at -1.2% of disposable income in 2024, worse than the -1% in 2023, -0.1% in 2022, and 0.7% in 2021.

The ratio of household debt to disposable income was 62% in Q4 2024, slightly down from 62.4% in Q3 2024 and 62.2% in Q2 2024, according to SARB's March 2025 Quarterly Bulletin. It hovered at about 62% to 63% in the past two years. Yet it was far lower than the 77% recorded four years ago.

"Household debt as a percentage of nominal disposable income declined from 62.4% in the third quarter of 2024 to 62.0% in the fourth quarter as the increase in household disposable income exceeded that in household debt," said the central bank.

Households' debt-service cost to disposable income stood at 8.9% in Q4 2024, slightly down from 9.1% in the previous quarter and 9% in the same period last year.

"Households' cost of servicing debt relative to disposable income decreased marginally from 9.1% to 8.9% over the same period, reflecting the slower pace of increase in the stock of debt as well as lower interest payments following the further 25 basis point reduction in the prime lending rate in November 2024," noted the central bank.

Total outstanding household debt in South Africa increased at an average annual rate of 5.2% between 2015 and 2022, reaching ZAR 2.78 trillion (US$154.17 billion) in 2023 following an accelerated growth rate of 7.1%. However, in 2024, the pace of debt accumulation slowed, with household debt rising by 4.9% to approximately ZAR 2.92 trillion (US$161.93 billion).

Of which, credit extended by banks accounted for 75%, while non-bank institutions accounted for the remaining 25%. Mortgage advances, the largest credit category, represent about 46% of total household debt.

The very high unemployment rate has been exacerbated by the health crisis in recent years. In Q1 2025, the country's official unemployment rate stood at 32.9%, up from 31.9% in the previous quarter but at par with the same period last year, according to Stats SA. It is far higher than the 29.1% before the pandemic. When the expanded definition is used, which includes those discouraged from seeking work, the jobless rate was actually at 43.1% in Q1 2025, up from 41.9% in the prior quarter.

Youth unemployment, measuring job-seekers between 15 and 24 years old, climbed to 62.4% in Q1 2025, up from 59.6% in the previous quarter and the highest level recorded since Q1 2022.

The total number of unemployed people in South Africa totaled 8.228 million in Q1 2025, an increase of 237,000 from the previous quarter.

Lackluster economic performance, high unemployment

South Africa is Africa's second-biggest economy. With a population of 63.2 million and a GDP per capita of US$6,332 in 2024, it has formidable manufacturing and financial sectors. It is the world's largest exporter of gold and platinum. Tourism is also a key source of foreign exchange.

After registering a post-pandemic growth of 5% in 2021, South Africa's economic growth slowed to 1.9% in 2022, amidst the fallout of the war in Ukraine, coupled with several domestic setbacks, such as floods and an energy crisis.

The economic slowdown continued over the next two years, with real GDP growth decelerating to just 0.7% in 2023 and 0.6% in 2024, reflecting persistent structural and external pressures on the economy.

"The South African economy recorded disappointing growth over the past two years, mostly reflecting serious bottlenecks in the energy and logistical sectors," said SARB in its April 2025 Monetary Policy Review. "While notable progress has been achieved in stabilising these sectors, they may continue to drag on economic activity for some time. These hysteresis effects are exacerbated by competitiveness factors, including elevated long-term borrowing costs as well as high costs of production skills, gaps and red tape, the materiality impact of which is becoming increasingly evident."

South Africa's economic performance remains poor. The economy expanded by a meager 0.8% y-o-y in Q1 2025, at par with the previous quarter but a slowdown from an expansion of 1.6% a year earlier. Quarter-on-quarter, the country recorded just 0.1% growth in Q1 2025, mainly caused by contractions experienced in manufacturing and mining and quarrying, which declined by 2% and 4.1% respectively, amidst persistent inefficiencies in the country's vital infrastructure.

"Seven out of the 10 manufacturing divisions reported negative growth rates. The largest negative contributions were reported for the petroleum, chemical products, rubber, and plastic products," said Statistician-General Risenga Maluleke.

According to Sandile Swana, an independent analyst, global price declines had weighed on certain commodities. "There was pressure on the petroleum division in the manufacturing sector. Our refinery capacity has dropped substantially. I suspect the decrease was volume-related," commented Swana.

Recently, SARB lowered its 2025 economic growth forecast to 1.2%, from its initial estimate of 1.7%, amidst heightened global economic uncertainty.

"In our last meeting, we warned of downside risks to our growth forecast. We have now trimmed our GDP projections, and currently expect growth of 1.2% this year, rising to 1.8% by 2027. The outlook for structural reforms remains positive, but there are also headwinds like lower global growth," said the central bank.

The International Monetary Fund (IMF) offers an even more cautious outlook, projecting a meager growth of 1% this year before improving slightly to 1.3% in 2026.

Inflationary pressures continue to ease. In May 2025, the annual headline inflation was 2.8%, unchanged from the previous month but far lower than the 5.2% recorded in the same period last year, based on figures from Stats SA. This is now below the SARB's inflation target range of 3% to 6%. Nationwide inflation averaged less than 5% from 2010 to 2021, before accelerating to 6.9% in 2022. Inflation eased to 5.9% in 2023 and to 4.4% in 2024.

South Africa's public finances show signs of improvement. During 2024, the budget deficit stood at 5% of GDP, following shortfalls of 4.9% of GDP in 2023, 4.2% in 2022, 5.7% in 2021, 10% in 2020, and 6.9% in 2019. Yet, it remains higher than the annual average shortfall of 4.4% in 2012-18. The country's public finances worsened during the onset of the COVID-19 pandemic after President Cyril Ramaphosa introduced a fiscal stimulus package worth ZAR 500 billion (US$27.63 billion), or a tenth of the economy, the largest ever spending plan in the country's history.

The government expects the fiscal deficit to be equivalent to around 4.8% of GDP in the FY2025-26 and 3.8% in FY2026-27.

South Africa's debt burden widened to 76.9% of GDP in 2024, up from 73.4% in 2023, 72.8% in 2022, 69.9% in 2021, and 70.7% in 2020. In fact, it is now the highest level seen in the country's recent history.

All three major credit rating agencies have affirmed South Africa's sovereign credit ratings in their most recent reviews:

• In September 2024, Fitch Ratings reaffirmed South Africa's long-term foreign-currency issuer default rating at BB- with a stable outlook. While Fitch acknowledged progress in stabilizing key sectors like energy and freight logistics, it also flagged persistent challenges such as high public debt and modest economic growth.
• In November 2024, Standard & Poor's (S&P) also affirmed South Africa's long-term sovereign credit rating at BB-/B and revised its outlook from stable to positive. The positive outlook reflects the potential for stronger-than-expected growth and fiscal consolidation.
• In December 2024, Moody's Investors Service affirmed the country's sovereign credit rating at Ba2 (sub-investment or "junk" status) and maintained its stable outlook. The agency highlighted improvements in the country's fiscal position and the ongoing recovery in the energy sector, which contributed to a more resilient macroeconomic environment.

"South Africa's 'BB-' IDR is constrained by low real GDP growth, a high level of inequality, a high and rising government debt-to-GDP ratio, and a modest path of fiscal consolidation. Growth is hampered by power shortages that are expected to continue in the near to medium term, although at a lower magnitude than in recent months, and by a struggling logistics sector," said Fitch Ratings.

"The ratings are supported by a favorable debt structure with long maturities and mostly local-currency-denominated, strong institutions, as well as a credible monetary policy framework," added Fitch Ratings.

One year under Ramaphosa's second term

In June 2024, South Africa's parliament re-elected Cyril Ramaphosa as the country's president following a landmark coalition deal with the governing ANC, the centre-right Democratic Alliance (DA), and smaller parties. The deal followed weeks of speculation on who would hold power in the new administration after the ANC lost its parliamentary majority for the first time in three decades in the May 2024 elections. ANC got 40% of the votes while the DA came in second with 22%.

One year into his second term, Ramaphosa has succeeded in maintaining stability through an unprecedented coalition and securing short-term investor confidence. However, tangible results-especially in economic growth, job creation, and reform-have fallen short, leaving his administration at a critical crossroads.

Ramaphosa was elected president by parliament in February 2018 after his predecessor, Jacob Zuma, resigned over corruption allegations.

Ramaphosa was Nelson Mandela's choice for future president. He is a trade union leader, MP, long-time ANC stalwart, and successful businessman, with a fortune of US$675 million, according to a Forbes estimate.

His business career has not been without controversy, with several accusations of bribery and corruption, but nothing on the scale of the accusations against Zuma. He was also implicated in the August 2012 Marikana massacre, when 34 striking miners were shot dead. Previously, he was Deputy President under Zuma.

Ramaphosa passed his first test when the African National Congress (ANC) won the May 2019 parliamentary elections, although its 57.5% share of the vote was its lowest margin of victory since apartheid was overturned 25 years ago.

However, many were dismayed by Ramaphosa's overly cautious handling of the country's struggling economy, the seemingly slow implementation of reforms, as well as his failure to rein in corruption. Public frustration grew in December 2019 when the beleaguered power utility, Eskom, left South Africans facing the worst blackouts in the country's history.

Ramaphosa's government has also come under fire for its handling of the health crisis and for delays in acquiring and rolling out vaccines.

But the biggest test to Ramaphosa's government is the Phala Phala controversy, which surrounds an alleged cover-up of a robbery that took place at his Phala Phala private farm, back in February 2020. The robbery and the alleged cover-up were first brought to light in June 2022 by Arthur Fraser, South Africa's former head of the State Security Agency.

Despite the scandal, Ramaphosa was reelected president of the ANC at the party's leadership conference in December 2022. Also, the official report from the public protector's investigation, released on June 30, 2023, indicated that no evidence of wrongdoing by Ramaphosa had been found.

Sources:

• Property Barometer - April 2025 (FNB): https://www.fnb.co.za/
• P5041.1 - Selected building statistics of the private sector as reported by local government institutions, March 2025 (Statistics South Africa): https://www.statssa.gov.za/
• Gross rental yields in South Africa: Cape Town and 5 other cities (Global Property Guide): https://www.globalpropertyguide.com/
• South African Property in 2025: What Q1 Reveals About the Road Ahead (Africabusiness.com): https://africabusiness.com/.
• Revisiting our housing market outlook (FNB): https://www.fnb.co.za/
• Mortgage advances (South African Reserve Bank): https://www.resbank.co.za/
• South Africa Household Saving Ratio (Trading Economics): https://tradingeconomics.com/
• South Africa Housing Market Report - 2021 (Centre for Affordable Housing Finance in Africa): https://housingfinanceafrica.org/
• Monetary Policy Review - April 2025 (South African Reserve Bank): https://www.resbank.co.za/
• South African central bank cuts rates and doubles down on lower inflation target (Reuters): https://www.reuters.com/.
• Statement of the Monetary Policy Committee May 2025 (South African Reserve Bank): https://www.resbank.co.za/
• South Africa country profile (BBC News): https://www.bbc.com/
• South Africa (International Monetary Fund): https://www.imf.org/
• South Africa Unemployment Rate (Trading Economics): https://tradingeconomics.com/
• Quarterly Labour Force Survey (QLFS) Q1:2025 (Statistics South Africa): https://www.statssa.gov.za/
• South Africa's Budget Leaves Debt on Upward Near-Term Trajectory (Fitch Ratings): https://www.fitchratings.com/
• Gross domestic product First quarter 2025 (Statistics South Africa): https://www.statssa.gov.za/
• South Africa's GDP slightly up in Q1 2025 (Xinhuanet): https://english.news.cn/.
• Consumer Price Index May 2025 (Statistics South Africa): https://www.statssa.gov.za/
• South Africa Government Budget (Trading Economics): https://tradingeconomics.com/
• Moody's affirms South Africa's Ba2 rating amid economic challenges and political change (Reuters): https://www.reuters.com/
• Fitch Affirms South Africa at ' BB-'; Outlook Stable (Fitch Ratings): https://www.fitchratings.com/
• S&P revises South Africa's outlook to positive (Standard & Poor's): https://english.news.cn/
• Cyril Ramaphosa re-elected South African president (BBC): https://www.bbc.com/
• South Africa's clean President Ramaphosa faces his own scandal (BBC): https://www.bbc.com/