Repo Rate cut sparks Optimism for Property Market - Industry experts weigh in

Key Takeaways

• Lower borrowing costs give homeowners and buyers extra breathing room, saving thousands annually on bond repayments.
• Improved affordability expected to re-energise first-time and mid-market buyers and unlock selective demand in high-demand areas.
• Positive market sentiment as experts predict stronger activity despite ongoing economic uncertainty.

Introduction

South Africa’s property market has received a welcome boost following the South African Reserve Bank’s decision to cut the repo rate by 25 basis points, reducing it from 7.25% to 7.00%, with the prime lending rate dropping to 10.50%.

This latest cut eases financial pressure on households, reduces monthly mortgage repayments, and is expected to stimulate buying activity in the months ahead. For example, a R1m bond now costs approximately R168 less per month, while a R5m bond saves over R840 monthly (20-year term, prime rate).

Industry leaders share their insights on what this means for buyers, sellers, homeowners, and investors.

Expert Industry Comments

Samuel Seeff - Seeff Property Group

‍“This cut offers relief but isn’t enough to deliver real stimulus. We need bolder action to unlock true growth. Buyers should seize current affordability opportunities while they last.”

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Dr Andrew Golding – Pam Golding Property Group

‍“With first-time buyer activity easing, this rate cut, combined with falling fuel prices and stable inflation, should re-energise this sector and boost confidence in the market.”

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Adrian Goslett – RE/MAX Southern Africa

‍“A small but positive step that could unlock pent-up demand, particularly in affordable and mid-market segments, edging closer to pre-pandemic conditions.”

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Craig Mott - Rawson Property Group

‍“It’s not a major cut, but every bit helps. Buyers gain more affordability, sellers must stay realistic, and homeowners should use savings to reduce debt.”

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Rhys Dyer - ooba Group

‍“Repayments on the average home loan are now R15,000 cheaper per year than a year ago. Application volumes and total loan values are already rising.”

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Greg Dart - High Street Auction Co.

‍“Uncertainty remains, but lower rates create buying opportunities. Auctions will continue to play a vital role in price discovery and market liquidity.”

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Chris Tyson - Tyson Properties

‍“Borrowing conditions remain among the best we’ve seen in years. Homeowners should stay cautious, tighten budgets, and pay down debt faster.”

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Jonathan Kohler - Landsdowne Properties

‍“This cut, coupled with revised transfer duties, opens the door for first-time and middle-income buyers, particularly in high-demand nodes in the Western Cape, Gauteng, and KZN.”

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The Way Forward

‍While the 25bps cut offers much-needed relief, experts agree that stronger rate reductions and sustained economic stability are needed to meaningfully boost transaction volumes.

For now, buyers can enjoy a slightly wider affordability window, sellers are encouraged to price competitively, and homeowners can use the extra savings to accelerate repayments or refinance strategically.

As market confidence slowly returns, selective demand growth is expected, particularly in high-demand, well-priced areas, paving the way for a more active, opportunity-driven property market in the second half of 2025.

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