With the South African Reserve Bank set to announce its latest interest rate decision, property industry leaders are urging for a more decisive rate cut to stimulate both the economy and the real estate market. The current lending rates remain higher than pre-pandemic levels, and many believe that a cautious approach has limited opportunities for growth.
Despite several rate reductions since 2024, property sales volumes have yet to recover significantly, and economic growth remains sluggish. Inflation has stayed well within the target range, while the rand has shown stability, creating favourable conditions for further cuts.
Industry leaders argue that lower rates would energise the housing market, encourage investment, and support job creation. They point to the growing demand in key metropolitan areas, where housing stock is shrinking and property prices are gradually increasing. A meaningful rate cut could boost buyer confidence, stimulate new developments, and provide much-needed momentum for the broader economy.