MAIN IMAGE: Adrian Goslett – regional director and CEO of RE/MAX Southern Africa, Silvana Dos Reis Marques – principal of Leapfrog Property Group Pretoria East, Samuel Seeff – chairman of the Seeff Property Group, Dr Andrew Golding – chief executive of the Pam Golding Property group, Rhys Dyer – CEO of the ooba Group, Bradd Bendall – BetterBond national head of sales, Leonard Kondowe – national manager at Rawson Finance
Editor
The South African Reserve Bank’s Monetary Policy Committee (MPC) announced its decision to keep interest rates unchanged, leaving the repo rate at 7% and the prime lending rate at 10.5%. This move, while widely expected, has been met with a mix of relief and frustration from the property sector.
Local property experts were hoping for a more accommodating stance to boost the economy. As Adrian Goslett, regional director and CEO of RE/MAX Southern Africa, commented, “While we understand the SARB’s need to act cautiously in the face of global uncertainty, today’s decision is likely to come as a disappointment to many South Africans who were hoping for some financial relief. Consumer budgets are still stretched owing to slow economic growth. Even a small rate cut could have provided a welcome buffer for homeowners and potential buyers alike.”
Silvana Dos Reis Marques, principal of Leapfrog Property Group Pretoria East, shares that, “Bond repayments remain steep, and first-time buyers—typically young professionals —are finding it increasingly difficult to enter the property market due to not qualifying for a home loan, pushing them, or keeping them, in the rental market instead. Sellers are also feeling the pinch; many are obliged to adjust expectations, as longer selling times and sluggish demand remain the norm”.
The decision comes despite a positive drop in South Africa’s headline inflation to 3.3% in August. This figure, along with the recent US Federal Reserve rate cut, had fuelled speculation that the MPC might lower the repo rate. However, with inflation expected to tick up again and the SARB’s long-term sights set on a new 3% inflation target, caution prevailed.
Missed opportunity for economic growth
Samuel Seeff, chairman of the Seeff Property Group, viewed the decision as a “huge, missed opportunity for the economy and property market.” He argues that the country’s current economic fundamentals provided ample room for a cut. “There was adequate reason to provide at least a 25-basis point cut, and we believe further rate cuts are needed to take the rate back to the pre-pandemic level,” he states, adding that the sector continues to call on the Reserve Bank to take “more bold action.”
Echoing this sentiment, Dr Andrew Golding, chief executive of the Pam Golding Property group, noted that “all things considered, were it not for the Reserve Bank’s focus on the lower end of the 3–6% inflation target band, local conditions appeared favourable for an additional rate cut.”
The property market’s resilience
Despite the rate hold, the housing market continues to show remarkable resilience. According to the Q2 2025 RE/MAX National Housing Report, the network’s registered sales grew by an impressive 11.7%. This momentum, says Adrian Goslett, shows that “the property market has shown resilience in the face of numerous challenges.” However, he believes overall growth will remain “hampered until there is a more meaningful reduction in interest rates.”
Both Rhys Dyer, CEO of the ooba Group, and Bradd Bendall, national head of sales at BetterBond, view the SARB’s decision as a strategic “pause” rather than the end of the rate-cutting cycle.
According to BetterBond’s latest figures, home loan applications are up 14% year-on-year, and house prices have strengthened by 2.1%. “For homeowners, it means short-term restraint, but also the potential for renewed momentum in the property market once the next cycle of rate cuts begins, hopefully in the months ahead,” says Bradd Bendall.
Dyer points to key developments signalling a steady recovery, including improved affordability, an uptick in activity across all major provinces, and a rebound in first-time homebuyer demand.
With the cost of living having declined, homeowners now have an opportunity to be proactive. Leonard Kondowe, national manager at Rawson Finance, reinforces the SARB’s cautious approach, stating, “There are real global and local pressures at play, and the SARB is wisely choosing to hold the line rather than make a premature move. That’s the kind of financial leadership that protects both homeowners and the broader economy.”
While Dr Golding remains hopeful that the current decision is a “temporary pause,” he is confident that a steady recovery continues to gather momentum, supported by banks that are offering attractively priced loans and elevated approval rates. “Given these factors, we are hopeful that the latest decision represents only a temporary pause in South Africa’s interest rate easing cycle, with the prospect of further cuts either later in 2025 or during 2026,” he said.
