Tips for first-time homebuyers to get a foot on the property ladder

The Citizen

23-06-2025

Tips for first-time homebuyers to get a foot on the property ladder
The Western Cape remains one of South Africa's most sought-after regions for property investment, attracting strong interest from both local and international homebuyers.
However, for first-time homebuyers, especially those looking at Cape Town, homeownership is a challenge as the province records the highest average purchase price. Still, data reveals that activity in the entry-level market persists, suggesting that many homebuyers are finding creative ways to get a foot on the property ladder.
According to the latest oobarometer data from ooba Home Loans, the Western Cape's average purchase price in Q1 2025 was R2.33m – well above the national average of R1.66m. Yet, the province continues to draw first-time homebuyers, with the demand for property in the region showing no signs of slowing.
'We're seeing many young professionals and investors gravitating towards the Western Cape for its lifestyle, infrastructure and perceived safety, but affordability in the metro remains a challenge, especially for those trying to enter the market for the first time,' explains Grant Smee, CEO of Only Realty Property Group.
Who Is Buying in the Western Cape, and Where?
Lightstone data shows that 40% of the Western Cape's housing stock is priced under R750,000, and while appearing to be a more accessible price point, most of these properties can be found in smaller towns and rural areas.
'Investment properties are also in high demand, with the Western Cape recording a year-on-year increase of 0.5% to reach 12.9% in the first quarter [ooba Home Loans]. There is a growing trend of first-time homebuyers purchasing in the Boland and Overberg regions in smaller, outlying towns,' says Smee. 'These areas offer a more balanced lifestyle and slightly more accessible pricing, while still benefiting from the broader Western Cape infrastructure.'
He says entry-level homebuyers investing in Cape Town's CBD are also increasingly choosing more affordable micro-apartments and sectional title units in high-density, mixed-use developments: 'These offer security and lifestyle perks like on-site retail, communal workspaces and gyms.'
Attracting Foreign Investors
Meanwhile, the Western Cape remains a top choice for foreign homebuyers, with its global appeal and in-demand lifestyle at comparatively more affordable prices than elsewhere. However, Smee notes they're investing in a higher price bracket.
'According to Lightstone data, the province leads in luxury price bands, with international homebuyers accounting for over 40% of purchases above R10m, around 25% in the R5m to R10m range and approximately 15% in the R3m to R5m bracket.'
He adds: 'Compared to global cities, the Western Cape offers strong value. For instance, the average price of a home in one of the region's upmarket suburbs sells for around R10m. To purchase an apartment in London – with considerably less living space – homebuyers will pay upwards of R12m.'
The Australian Property Investor also highlighted South Africa's comparatively low housing prices, with South Africans paying around R17,000 per square metre for a median-priced home, compared to Australia's R113,000 for the equivalent.
Alternatives for First-Time Buyers
Smee notes that while the Western Cape remains a strong performer in the property market, savvy buyers are increasingly exploring outlying regions that offer better value for money than central Cape Town. Areas such as the West Coast, the Garden Route, and the northern and southern suburbs present attractive alternatives.
'The Western Cape's so-called 'Zoom' towns – so-called for their remote working appeal—include Pringle Bay, Betty's Bay, Kleinmond, Malmesbury, Hermanus, and Gansbaai,' he explains. 'These areas provide easier entry points for buyers and remain within comfortable reach of Cape Town.'
However, he adds that excellent opportunities exist beyond the Western Cape as well. 'Mpumalanga, for instance, is currently leading the pack when it comes to home loan applications from first-time buyers [ooba Home Loans]. Nelspruit, in particular, is booming with new estate developments that offer a secure, lock-up-and-go lifestyle, community atmosphere, and budget-friendly pricing.'
Gauteng also continues to hold strong appeal. 'Popular nodes like Waterfall, Bryanston, and Hyde Park are drawing interest from buyers seeking well-established infrastructure and upscale living,' he says.
Meanwhile, KwaZulu-Natal's North Coast – most notably Umhlanga, Ballito and Salt Rock – has become a magnet for investment. 'Over the past decade, this region has experienced massive growth, with estate developments, excellent schools, security, and community-driven living making it an increasingly worthwhile investment,' he adds.
The Eastern Cape is quietly gaining momentum, too. Towns like Kenton-on-Sea and Jeffreys Bay are becoming hotspots for short-term rental investors, thanks to their appealing lifestyle offerings and growing popularity.
'These regions combine access to economic centres with strong lifestyle appeal, without the Cape Town price tag,' Smee explains. 'For buyers willing to expand their horizons beyond the Western Cape, there are standout opportunities, many in secure estates or fast-growing nodes. And with many of these areas doubling as holiday destinations, they open the door to 'reinvestment' opportunities, whether for short-term letting or longer-term leasing.'
Practical Tips for Accessing the Market
'For homebuyers determined to get a foothold in the Western Cape property market, there are many options available,' he notes. 'This investment is well worth it too as the average growth of property in the province is around 7.4%.'
He shares his top tips for those wanting to get a foot on the property ladder as follows:
Enter into a joint home loan: Co-buying with a friend, partner or sibling can boost affordability and borrowing power.
Co-buying with a friend, partner or sibling can boost affordability and borrowing power. Save smart and plan long-term: Set clear savings goals and budget realistically for transfer and attorney fees.
Set clear savings goals and budget realistically for transfer and attorney fees. Start on the outskirts: Neighbourhoods just outside key metro areas often offer more accessible prices and are poised for growth.
Neighbourhoods just outside key metro areas often offer more accessible prices and are poised for growth. Buy a fixer-upper: Properties in need of a bit of work can often be negotiated at lower prices and renovated over time.
Properties in need of a bit of work can often be negotiated at lower prices and renovated over time. Buy-to-let as a stepping stone: Purchase an investment property in a growing node while renting where you live.
'The Western Cape is a great place to invest, but it could require a bit more creativity and long-term thinking for first-time homebuyers to make it work. Alternatively, if the Western Cape doesn't meet your criteria, regions like the Eastern Cape, KwaZulu-Natal and Mpumalanga have potential. It's not about compromising your goals, but rather being strategic,' says Smee.
Issued by Jess Gois