28/05/2026
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Amid ongoing geopolitical tensions, the latest decision to increase interest rates signals a more cautious economic outlook for South Africaโs property market.
The Monetary Policy Committeeโs (MPC) decision to increase interest rates, with the repo rate now at 7% and the prime lending rate at 10.5%, reflects the South African Reserve Bankโs (SARB) ongoing efforts to contain inflation as geopolitical tensions persist and commodity prices continue to rise.
According to Adrian Goslett, CEO and Regional Director of REMAX Southern Africa, while the increase may place additional pressure on household finances in the short term, the property market has historically shown resilience during changing rate cycles.
โHigher interest rates will naturally influence buyer affordability and may result in consumers approaching property decisions with even more caution, however, the South African property market remains underpinned by long-term demand as property is viewed as a stable investment,โ he explains.
Goslett notes that while higher borrowing costs may cause buyers to delay purchasing decisions and reassess their budgets, the demand for property is still expected to remain resilient as many South Africans continue to view property as a stable long-term investment.
โFor consumers, now is the time to review budgets carefully, reduce unnecessary debt, and approach property decisions with the long-term goal in mind. Buyers who plan ahead and remain financially responsible can still find valuable opportunities in the market,โ concludes Goslett.
