September 29 2026 16:00
BRYANSTON, SOUTH AFRICA
Last week, the South African Reserve Bank (SARB) raised the repo rate by 25 basis points to 7.25%, pushing the prime lending rate to 10.75% effective September 25, 2026
“The rate increase will make prospective buyers look harder at what they can afford each month, particularly if they are also paying off a car or other debt. Some will look at less expensive homes, and others will stay in their rentals for longer. Buyers will still be out there, but they will be more careful about the price they offer and the cost of living in the home,” says Kohler.
“That is likely to slow the market. Sellers may have to wait longer for an offer, and asking prices that were already a stretch for buyers will be harder to achieve. I would expect the first effect to be fewer sales and longer selling times, rather than a sudden fall in property prices,” he says.
“For renters hoping to buy, staying put for another year has a cost of its own: another year of rent while trying to save a deposit. With a further rate increase possible when the MPC meets on 19 November, buyers need to choose a home they can still afford if their borrowing costs rise again,” he says.
247@propertyflash.co.za
