More South Africans buying houses for less than R700k. Here’s why

There has been an increase in the number of people buying houses between R350 000 and R700 000 in South Africa.

Standard Bank says it has seen a double-digit increase in activity in this market over the past four years, as ongoing urbanisation creates a greater need for accessible housing in metropolitan areas.

Toni Anderson, head of Standard Bank Home Services, says this market continues to show resilience, mainly in Gauteng and the Western Cape, where demand remains strong despite economic pressures.

Who is buying these houses?

He adds that the primary buyers of houses within this range are people earning up to R30 000 a month.

The banks describe these properties as ‘affordable homes’.

“While the uptake of sectional title homes has more than doubled in the past four years compared to the four years leading up to 2020, most buyers still prefer full-title, standalone houses.

“These are likely to be in the outskirts of key metros, but strong sales suggest buyers are willing to make that trade-off for full-title homes.”

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Where are they located?

Anderson says provinces like KwaZulu-Natal and the North West have also seen rapid growth in home loan uptake for affordable homes, and Gauteng leads the market.

In the four years up to February 2025, Gauteng accounted for 47% of all affordable housing loans issued by Standard Bank – a pattern that was seen even before the pandemic. 

However, the demand for affordable housing extends beyond traditional markets.

Despite rising property prices, the Western Cape has remained active in the affordable housing market – a trend it has consistently shared with Gauteng.

“Over the four years leading up to February 2025, the Western Cape accounted for 18% of all affordable housing loans issued by Standard Bank, with KwaZulu-Natal following in third place at 12%.”

Affordable housing loan

He adds that many Standard Bank customers take out only one affordable housing loan.

“Still, a growing subset is also accessing additional funds for home improvements or expansions — indicating that these purchases serve as entry points into the housing market for buyers with bigger aspirations.”

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