The Monetary Policy Committee (MPC) announced that interest rates will be cut by 0.25%, lowering the repo rate to 6.75% and the prime lending rate at 10.25%. Local property experts are in agreement that this change by the South African Reserve Bank (SARB) has been a more accommodative approach to economic recovery and will assist in improving buyer confidence in South Africa.
Regional Director and CEO of REMAX Southern Africa, Adrian Goslett, commented that “the decision by the SARB to lower interest rates during the current global economic climate is a favourable approach to aid in financial relief for many South Africans. As a result of stagnant economic growth, this small rate cut can provide a financial buffer for homeowners and prospective buyers across the country.”
With inflation under relative control, the SARB has adapted their strategy from a more cautionary stance in September, to a controlled change approach in November, opting to lower interest rates by 0.25%. This move suggests increasing faith that the domestic economy is slowly relieving itself from external risks, including unpredictability in the global market and local tax pressures, to permit modest monetary support.
Although the economic conditions have not been favourable leading up to the announcement, the housing market has remained relatively active in the last quarter. As reported in the Q3 2025 REMAX National Housing Report, REMAX Southern Africa’s network saw registered sales grow by 19.03% YoY with this growth expected to continue in the months to come, with the brand’s report sales (i.e. deals that have not yet been finalised through the Deeds Office) for this period growing by a staggering 29.09% YoY.
“We remain optimistic that the decision by the SARB may signify the start of renewed growth in the property market as we head into the new year. In the meantime, we encourage potential buyers to make use of these more accessible lending conditions and the favourable property prices that are currently available,” concludes Goslett.
