Breaking the cycle of six interest rate cuts - between September 2024 and November 2025 - is the announcement by the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) that the prime lending rate is to remain unchanged at 10,25%.
Reactions from the real estate industry are as expected: summed up as ‘disappointed’ because it would have brought additional relief to households and encouraged more buyers to the market, particularly first-time buyers. However, the cycle of interest rate cuts over the past two years has generated a surge of energy in the market with optimism for two rate cuts during 2026.
Here’s what industry heads are saying:
Bradd Bendall, BetterBond’s national head of sales
“Encouragingly, the average deposit required by first-time buyers has dropped by 15% compared to last year, driving renewed activity from this important segment of the market. Looking ahead, with inflation remaining within one percentage point of the Reserve Bank’s 3% target and the rand holding firm against major currencies, conditions remain supportive for another cut in the prime lending rate in the coming months.”
Chris Tyson, founder of Tyson Properties
“Right now we are entering an extremely interesting time for the property sector. The Reserve Bank’s announcement in Davos that it is looking into scrapping or restructuring the prime lending rate in order to modernise the financial system suggests a realignment of the whole home loan system this year.”
Greg Dart, director of High Street Auctions
“Further indications that South Africa is becoming more investor friendly – an improved macroeconomic environment, the removal of South Africa from the Financial Action Task Force (FATF) grey list which improves its standing with international investors, a more stable power grid, increased economic growth, a resilient rand, and a strong gold price – there is also a strong chance that the investor pool in South Africa will, at last, grow.”
Samuel Seeff, chairman of the Seeff Property Group
“The interest rate remains the most important variable for the property market, as we can clearly see from the fact that overall transactions in 2025 were still 26.5% lower compared to 2021 when the interest rate was at 7%. While sales volumes and mortgage applications have improved, more rate cuts are needed to further stimulate affordability and the market.”
Adrian Goslett, CEO and regional director of REMAX Southern Africa
“Although holding rates steady does offer some predictability for the market, the reality is that many South Africans are still feeling the pressure of a higher cost of living and strained household budgets. A rate cut would have helped ease the burden on consumers and encouraged stronger buyer confidence, particularly among first-time buyers trying to enter the market. Those who are financially prepared may find opportunities in the current market. With the right guidance and a clear understanding of affordability, buyers can still make smart property decisions despite interest rates remaining at the current level.”
Richard Gray, CEO of Harcourts South Africa
“This rate hold, combined with a resilient local currency and improving economic sentiment, sets the tone for a more optimistic real estate environment in 2026. We are already seeing signs of renewed confidence in the market, with more buyers returning and sellers adjusting expectations to meet the moment. At Harcourts South Africa, we believe this is a signal that the property sector is poised for steady, sustainable growth. From first-time buyers looking to enter the market to seasoned investors seeking value, the conditions are aligning for strategic moves.”
Fritz Swanepoel, CEO of Leapfrog Property Group
“The SARB's decision to hold the repo rate today is a win for first-time buyers looking for a clear and confident entry point into the property market. This stable phase creates an opportunity to secure property at current valuations while benefitting from a more supportive lending environment. My guidance to buyers is simple: get prequalified. The gap between renting and owning has narrowed to the point where ownership is no longer aspirational - it's a smart, sustainable financial decision for the year ahead.”
Adriaan Grové, CEO of MyProperty
“For those looking to enter the market, this period of stability represents a strategic sweet spot. With the prime lending rate holding steady at 10.25%, the cost of borrowing remains significantly more attractive than the highs of previous years, making homeownership more of a possibility for a broader segment of the population.”
Dr Andrew Golding, chief executive of the Pam Golding Property group
“While the decision was not what existing mortgage holders and prospective homebuyers seeking credit were hoping for, most market commentators believe that, with inflation remaining contained, there is scope for up to two 25 bps repo rate cuts during 2026. The outlook for interest rates is supported by ongoing rand resilience, easing inflation expectations, and softer global oil prices. All factors considered, the year ahead is therefore expected to offer sound prospects for both buyers and sellers.”
Gavin Lomberg, CEO of ooba Home Loans
“A steady interest rate environment, improved consumer affordability, and competitive bank lending will continue to drive the acceleration of South Africa’s property industry throughout 2026. If inflation remains contained, the rand remains resilient, and fuel prices stay supportive, we strongly believe that there is scope for further easing later in the year. And, while we wish to remain cautious in our predictions, we wouldn’t rule out the possibility of more than one rate cut – dependent on the global and local outlook.”
Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty
“The first repo announcement of the year speaks to the property market going forward. The market will continue to favour the well-priced, quality stock in sought-after areas, while properties that are overvalued or in less desirable locations will struggle. The buy-to-let segment may see sustained interest as rental demand remains robust, but investors will be meticulously scrutinising yields. The SARB’s hold is a reflection of a world, and a year, that has unequivocally begun with a new round of shocks. For the property sector, it underscores the need for resilience, accurate pricing, and expert guidance.”
