The real estate industry in South Africa offers a dynamic and potentially lucrative career path, but earnings can vary widely based on experience, location, and market conditions.
According to recent data, the average annual salary for a real estate agent in South Africa is approximately R209,1431. However, this figure can range significantly, with entry-level agents earning around R214,500 per year, while top earners can make up to R4,320,000 annually.
Monthly earnings also show a broad spectrum. On average, real estate agents earn about R15,079 per month. However, this can vary from as low as R6,000 to as high as R52,950, depending on factors such as the city and the real estate agency they are affiliated with.
Experience plays a crucial role in determining earnings. An entry-level real estate agent with less than one year of experience can expect to earn an average total compensation of R100,210.
In contrast, those with mid to late career experience can see their earnings increase significantly, with late-career agents earning up to 105% more than their entry-level counterparts4.
In addition to base salaries, real estate agents often earn commissions, which can significantly boost their income. Commissions depend on the value and volume of properties sold.
Pierre Rousseau of PropertyTime notes that real estate agents are typically paid on a commission basis, which means that your earnings are directly tied to the sales you make.
This commission is usually a percentage of the sale price of the property. In South Africa, this is usually between 5% and 7.5%, with 6% being the most common commission.
If you sell a property for R2 million and the commission rate is 6%, you’ll earn R120,000 in commission. The actual amount you’ll earn will depend on the commission rate, the sale price of the property, and any split agreements you have with your agency or broker, he said.
"As with any job, how much you can earn is often strongly linked to your experience and the same is true for real estate agents. While new agents make an average of R20 000 per month during their first year in the business, the average monthly income of a real estate agent in South Africa is R36 000 per month.
"Of course, commissions-based earnings are not usually paid out monthly and one of the things that you’ll have to consider is that you will be paid in lump sums whenever you make a sale, rather than drawing a consistent salary," said Rousseau.
He said that agents working in high-end and expensive areas like Cape Town’s Atlantic Seaboard or Johannesburg’s Sandton can earn significantly more than those working in more affordable areas.
The average sales price for a property in Franschoek, Western Cape, for example, was R3.3 million in 2022. This is compared to the more affordable area of Parow, where houses sold for an average of R1.5 million.
"However, 2022 saw 1 388 property sales in Parow, compared to only 168 in Franschoek in the same period. While you’d earn a lot more selling one house in Franschoek, there are fewer homes for sale and the total earning potential in affluent areas might not be as high as in more affordable areas where there are more properties going up for sale."
Rousseau noted that competition in affluent areas is often also much higher than in more affordable neighbourhoods.
"With higher commissions, many agents will be drawn to the more expensive areas, and you’d be competing against all of them to find clients. In addition, selling high-end homes often takes longer and requires a different set of skills and expertise compared to selling homes in more reasonable areas."
Working with an agency or broker often means that there will be a split agreement between the agency and the broker. This is a common practice in South Africa and is when the agency takes a certain percentage of your commission on a sale.
Rousseau said that the exact split varies depending on the agency and individual agent and is one of the ways that more experienced agents can increase their earnings.
For example, if you have a 50/50 split agreement and you sell a property for R2 million with a 6% commission rate, you’ll earn R60,000 in commission, with the other R60,000 going to your agency or broker.
"If you have a higher split agreement, you’ll earn more per sale, but you may also have less support from your agency or broker. Then, of course, there is PropertyTime Real Estate Specialist who pays very high commission splits, from 85% to as high as 91%."
Adrian Goslett, regional director & CEO at RE/MAX Southern Africa, revealed that the top 200 agents at the company averaged 40 sales each in 2023, earning around R2.7 million annually, or R225,000 per month.
According to ooba Home Loans, the average national property price in Q4 2023 was approximately R1.41 million.
With an average commission rate of 3% to 4%, agents could earn between R42,000 and R56,000 per sale, totalling R1.68 million to R2.24 million for 40 properties.
Real estate agent earnings in South Africa vary based on experience, location, brokerage, and market conditions.
Many agents work on a commission-only basis, though some larger agencies offer a base salary or retainer, especially for new agents or during slow sales periods.
Commission and Bonuses
Commission Rates: Typically range from 5% to 8% of the property’s selling price, split between the buyer’s and seller’s agents.
Tiered Commission: Higher rates for reaching sales targets or selling high-value properties.
Performance Bonuses: Based on sales volume, customer satisfaction, and achieving brokerage targets.
Incentives and Perks: Travel rewards, training, marketing support, and exclusive listings.
Independent Contractors
Most agents are independent contractors, responsible for their own business expenses, including marketing, transportation, and licensing fees.
Income can be highly variable, depending on market conditions, property sales, and individual skills.
In 2023, 3,250 RE/MAX agents sold over 20,000 homes in Southern Africa, totalling R27.9 billion in sales. This averages to six properties per agent annually, with potential earnings between R252,000 and R336,000.
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