25bps Rate cut signals relief, confidence and revival for South Africa’s Housing Market

By Neale Petersen

November 20, 2025

News

Reserve Bank cuts repo rate 25bps, easing pressure on households.
Experts predict stronger demand, improved affordability and rising confidence.
Lower repayments boost first-time buyers and festive consumer spending.

South Africans received welcome news today as the Reserve Bank reduced the repo rate by 25 basis points, taking it to 6.75%, with the prime lending rate now at 10.25%. The decision brings financial relief ahead of the festive season and injects renewed confidence into a property market already showing early signs of recovery. We asked leading industry experts for their views on what today’s cut means for buyers, homeowners and the market heading into 2026.

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Samuel Seeff – Seeff Property Group

‍Today’s rate cut brings meaningful relief for consumers and strong encouragement for the property market. With inflation sitting comfortably within the Bank’s new 2 - 4% target range and the currency stable, conditions were ideal for a further easing step.

Lower borrowing costs will boost affordability, stimulate demand and help revive sluggish sales volumes. For homeowners, cumulative rate cuts since mid-2024 now translate into monthly savings exceeding R1,000 on a R1 million bond, a key incentive for first-time buyers.

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Dr Andrew Golding – Pam Golding Property Group

‍A brighter economic outlook, supported by the MTBPS and today’s repo cut, is set to lift confidence and sales activity into 2026. While the impact typically takes a few months to filter through, younger buyers are already re-entering the market in strong numbers, especially in Johannesburg.

With Treasury adopting the 3% inflation target, South Africa moves closer to a structurally lower interest-rate environment, improving long-term affordability. House price growth is strengthening across major regions, reflecting rising market momentum.

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Bradd Bendall – BetterBond

‍Homeowners can breathe easier as today’s reduction further lowers monthly bond costs, extending a cumulative 150bps drop since November 2024. BetterBond’s data shows applications up 30% since Q3 2023 — the strongest levels since early 2022.

First-time buyer approvals are rising, required deposits are falling, and overall affordability is improving. This latest cut will add another short-term boost to buyer confidence, helping sustain the recovery as consumers enter the festive season with more disposable income.

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Gavin Lomberg – ooba Home Loans

‍This sixth rate cut since September 2024 signals renewed belief in South Africa’s economic recovery. Borrowing costs have fallen 1.5% in just over a year, providing meaningful relief to households.

Enhanced confidence, improved affordability and stronger approval rates — particularly among prequalified buyers — show clear upward momentum. With rates now at a three-year low, we expect continued first-time buyer activity and increased demand through 2026, especially in markets where entry-level pricing remains below the R1 million threshold.

STBB – Legal Perspective

‍SARB’s unanimous decision aligns with global best practice following the adoption of South Africa’s new 3% inflation target. Lower, stable inflation gives the Bank room to ease further, supporting household spending and boosting bond affordability.

Today’s cut, the fourth this year, comes on the back of the country’s credit rating upgrade and grey-list exit, reinforcing a more stable macroeconomic outlook. The decision will be welcomed across the property sector, stimulating demand and supporting real estate growth into 2026.

Summation

‍Today’s decision reinforces a turning point: confidence is rebuilding, affordability is improving, and early-cycle momentum is strengthening across key markets. While challenges remain, lower borrowing costs and rising buyer activity signal a healthier outlook for 2026.

This is the most supportive environment for homeownership and investment that South Africa has seen in three years and sentiment is finally catching up.