Property groups said that the Monetary Policy Committee (MPC) decision on Thursday to keep interest rates unchanged with a repo rate at 6.75% and the prime lending rate at 10.25% comes as no surprise due to ongoing Middle East tensions.
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South Africa’s property sector has largely welcomed the decision by the South African Reserve Bank's (Sarb) Monetary Policy Committee (MPC) to keep interest rates unchanged, describing the move as expected amid ongoing global uncertainty, particularly tensions in the Middle East.
The MPC on Thursday left the repo rate at 6.75% and the prime lending rate at 10.25%, opting for caution as geopolitical risks continue to cloud the inflation outlook.
While the decision came as no surprise to market participants, industry leaders say it offers short-term stability for homeowners and prospective buyers.
Dr Andrew Golding, CEO of the Pam Golding Property group, said the decision provides a measure of stability for households with existing mortgages and aspirant home buyers seeking credit, particularly in the face of surging fuel prices and increased municipal tariffs.
“Currently, heightened geopolitical tensions and disruptions to global shipping routes are injecting some uncertainty into the economic outlook, with the duration of the disruptions emerging as the key risk factor for inflation, interest rates, and South Africa’s housing market,” he said.
Golding added that while the Sarb is expected to keep the repo rate unchanged in the near term, rising fuel prices are set to place upward pressure on inflation.
“A period of elevated inflation and interest rates may place some pressure on household finances, directly impacting housing affordability,” he said.
“First-time buyers, who are particularly sensitive to interest rate movements, may take a more measured approach but remain an important driver of demand in the market.”
Samuel Seeff, chairman of the Seeff Property Group, said that Sarb's decision was appropriate and expected. Seeff said the outlook must remain clear for at least two more cuts this year.
"The bank must guard against any premature or reactionary rate hikes triggered by the temporary oil price spike and petrol volatility caused by the Middle Eastern war. This geopolitical instability must be viewed as a temporary glitch rather than a reason to increase the cost of debt,” he said.
Seeff added that economic stability and a focus on growth must be prioritised over any short-term action that could again set the economy back.
“The economy and the property market have yet to feel a real uptick as previous interest rate adjustments were simply too slow and too low to provide a meaningful stimulus. GDP growth for 2025 ended at a disappointing 1.1%, below the Bank’s own projections," he said.
"While the outlook is more positive for the year ahead, the market requires the certainty of a downward interest rate trajectory to recover from its current lack of momentum; the case for further easing is supported by exceptionally strong underlying fundamentals that the Bank must not ignore.”
Adrian Goslett, CEO and regional director of REMAX Southern Africa, said that while a hold on interest rates offers some welcomed breathing room for consumers, the broader economic environment remains uncertain.
“Global tensions, particularly those impacting oil supply, are likely to influence fuel and food prices locally, which could place upward pressure on inflation later in the year," he said.
"The property market continues to operate with caution. Buyers and sellers alike are navigating mixed signals, balancing improved affordability against concerns of future rate movements.”
Goslett added that on the positive side, interest rates have eased back to levels comparable to the pre-COVID period (6.5% in October 2019).
Myles Wakefield, CEO of Wakefields Real Estate, said that after a 25 basis point cut in November 2025, there had been cautious optimism around further easing.
“For the property market, a steady rate environment provides clarity. Buyers can plan with confidence, knowing that borrowing costs are not shifting unpredictably. Sellers benefit too, as stable conditions tend to support consistent demand rather than creating hesitation," he said.
"We are already seeing this play out across many of our markets. Well-priced homes continue to attract strong interest, particularly in the entry-level and mid-market segments.”
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