MAIN IMAGE: Chris Tyson – CEO of Tyson Properties, Craig Mott – national sales manager for Rawson Property Group, Herschel Jawitz – CEO of Jawitz Properties, Ryan Greeff – CEO of Quay 1 International Realty, Rhys Dyer – CEO of the ooba Group, Bradd Bendall – BetterBond national head of sales, Samuel Seeff – Chairman of the Seeff Property Group, Dr Andrew Golding – CE of the Pam Golding Property group, Adrian Goslett – regional director and CEO of RE/MAX Southern Africa, Yael Geffen – CEO of Lew Geffen Sotheby’s International Realty
Editor
Last Thursday, the South African Reserve Bank’s Monetary Policy Committee (MPC) announced that it would reduce the repo rate by 25 basis points to 7%, bringing the prime lending rate down to 10.5%. This announcement has been met with a mix of cautious optimism and sharp critique across the South African property sector. This move, the fifth rate cut since September 2024, aims to inject much-needed relief into household budgets and stimulate a recovering market, even as global uncertainties loom.
Industry leaders weigh in
The rate cut is sure to boost the property market
Chris Tyson, CEO of Tyson Properties, welcomed the rate drop, emphasising the importance of focusing on positives despite geopolitical tensions and impending tariffs. “There is always the risk that we remain so focused on the ongoing negatives that we fail to see the many positives. We should not forget that the current interest rate environment continues to offer both those entering the property market and those who are repaying loans on properties the best borrowing conditions in years,” he stated.
Craig Mott, national sales manager for the Rawson Property Group, described the rate cut as a “welcome move for homeowners, buyers, and investors navigating a challenging economic landscape.” He acknowledged it might not be a major cut, but “in today’s market, even a small reduction helps – and it boosts confidence.” Mott, while cautious about global trade tensions and local energy risks, believes the cut creates a better window of opportunity for first-time buyers and encourages realistic pricing for sellers.
Herschel Jawitz, CEO of Jawitz Properties, stated that the 25-basis point cut will “continue supporting the slow recovery in the residential property market, both from an affordability and consumer confidence point of view.” He highlighted that the cumulative 1.25% reduction since the cycle began translates to an R840 monthly saving on a R1 million home loan, with the potential to significantly reduce loan periods and total repayments if homeowners maintain current payment levels. Jawitz believes this will sustain the increase in demand, eventually firming up property prices.
Ryan Greeff, CEO of Quay 1 International Realty, expressed pleasure at the SARB’s “proactive step,” particularly for the Cape Town market, where affordability and confidence are highly sensitive to rate adjustments. He anticipates the rate cut will provide a “perfect window for many aspiring homeowners to enter the Cape Town market,” and noted Quay 1’s strong momentum with over R1.4 billion in closed deals in H1 2025. Greeff highlighted the “psychological shift” occurring, with buyers beginning to plan for the future again and property returning as a central conversation in financial planning.
Home loan applications are up
Rhys Dyer, CEO of the ooba Group, believes this second consecutive 25-basis point cut will significantly support homebuyers. He highlighted the tangible savings: “At the current prime lending rate of 10.50%, the monthly repayment on a home priced at our Q2’25 average approved bond size of R1,455,712 equates to R14,534 over 20 years – down from R15,776 just a year ago. Savings like these add up to almost R15,000 extra in a homeowner’s pocket over the course of a year.” Dyer pointed to an 11% year-on-year increase in home loan applications in Q2’25, reflecting improved affordability and growing buyer confidence.
Bradd Bendall, BetterBond national head of sales, agrees, noting that “The housing market, which has already shown remarkable signs of recovery in recent months. BetterBond’s July data shows that bond applications rose by 7.4% for the 12 months to May 2025, with home loans granted up by an impressive 13.6%.
These volumes point to renewed buyer confidence and a more stable market environment that should encourage more aspirant first-time buyers to enter the property market.”
The cut is great, but we need more
Samuel Seeff, Chairman of the Seeff Property Group, hailed the decision as “welcome news for the economy and property market.” He sees it as the correct move given inflation remaining below the Bank’s target and currency stability. “While this cut brings welcome relief for consumers by reducing borrowing costs and putting more money back into their pockets to spend in the economy, it is still not enough. More needs to be done to really give the economy the rocket boost that it needs.” Seeff noted that a R1 million bond repayment will reduce by around R853 per month compared to last year, encouraging buyers to take advantage of market opportunities.
Good news for price-sensitive first-time buyers
Dr Andrew Golding, CE of the Pam Golding Property group, also views the reduction as “extremely positive news for the residential property market,” boosting confidence for aspiring buyers and providing relief for existing mortgage holders. He anticipates that this rate cut, combined with a reduced fuel price and subdued consumer inflation, will support first-time buyer demand, a segment “extremely sensitive to interest rate cuts.” Dr. Golding also highlighted increasingly competitive home loan pricing and a slight easing of average deposits for first-time buyers.
Adrian Goslett, regional director and CEO of RE/MAX Southern Africa, viewed the MPC’s announcement as a “welcome step towards reinvigorating economic activity and restoring consumer confidence.” He expects this cut to “serve as a much-needed catalyst for transaction volumes, particularly in the affordable and mid-market sectors.” Goslett noted the market’s continued buoyancy, with RE/MAX SA reporting sales figures up 12.5% and total units sold up 6.5% compared to last year.
Economic outlook and forward momentum
While some, like Seeff, argue for “bolder rate cuts” to truly stimulate the economy, the current cuts are widely seen as a positive psychological shift. Inflation remains anchored near the SARB’s 3% lower target, and a series of petrol price cuts (with another anticipated in August) are providing additional relief. Real salary growth, outpacing inflation for the second consecutive year, is also expected to underpin consumer spending.
However, Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty, offered a different critical perspective. While acknowledging the short-term relief, she expressed concern about the broader economic context. “We’re on the precipice of an economic disaster, and while this rate cut will help for now, it might come back to bite us in the long term.” Geffen pointed to record unemployment, soaring household costs, and high debt servicing. She was particularly scathing about the timing, contrasting it with the US Federal Reserve’s decision not to cut rates amidst economic growth. Despite her economic concerns, Geffen reiterated property’s role as a safe-haven investment, noting, “Real estate will always be a safe-haven investment.”
The market has responded positively throughout 2025, even amidst global trade policy volatility, leading to increased demand and improved house price appreciation. While not a boom, the South African property market appears to be quietly strengthening, demonstrating resilience and a return to strategic, long-term thinking among buyers and homeowners. The journey ahead for the property sector, though still shaped by global and local pressures, appears to be one of cautious but steady recovery.
