The Monetary Policy Committee (MPC) announced that interest rates will remain unchanged at 7% (repo rate) and the prime lending rate at 10.5%. Although expected, local property experts remain disappointed that the SARB has not adopted a more accommodative stance for economic recovery.
Regional Director and CEO of REMAX Southern Africa, Adrian Goslett, commented that “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.”
While inflation remains low, the Reserve Bank appears to have opted for stability over stimulus, choosing to hold rates until there is greater clarity on external risks such as global trade tensions and domestic fiscal pressures. Analysts widely anticipate that any potential rate cuts will be postponed to the second half of 2025, assuming inflation remains contained and international conditions stabilize.
Despite the slow economic conditions, the housing market has been able to remain active. According to the Q2 2025 REMAX National Housing Report, the REMAX SA network’s registered sales grew by an impressive 11.7% in Q2 2025 – and it seems as though this growth is likely to continue in the months to come, with the brand’s reported sales (i.e. deals that have not yet been finalised through the Deeds Office) for this period growing by a staggering 18.9%.
According to Goslett, “The property market has shown resilience in the face of numerous challenges. Our network’s results outperform the broader market conditions. Overall, growth within the local housing market remains hampered until there is a more meaningful reduction in interest rates or a notable improvement in economic conditions,” he states.
“We remain hopeful that conditions will allow for a rate cut in the second half of 2025. In the meantime, we encourage homebuyers to make use of favorable property prices and lenders’ appetite to finance well-qualified applicants,” he concludes.
