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| The SARB has kept interest rates unchanged at 10.5%. Discover what the decision means for homeowners, buyers, investors and South Africa's property market. |
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| Stability may be exactly what property needed | | |
There wasn't a rate cut. There wasn't another hike. What the Reserve Bank delivered instead may prove even more valuable, certainty.
With inflation edging back to 5%, conflict in the Middle East pushing energy prices higher and global markets remaining volatile, many expected the Monetary Policy Committee to remain cautious.
That's exactly what happened. By keeping the repo rate at 7.0% and prime at 10.5%, the Bank has provided breathing room for homeowners, buyers, developers and investors without compromising its fight against inflation.
The decision also reinforces something we've seen consistently throughout 2026. South Africa's property market continues to outperform expectations. House prices are rising at their fastest pace since 2021.
Banks remain highly competitive. Foreign buyers continue investing heavily. Developers are launching new projects. While economic growth remains subdued, property continues proving itself as one of the country's most resilient asset classes.
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Interest Rates
The SARB keeps borrowing costs unchanged, providing welcome certainty while remaining vigilant on inflation.
Residential
Demand remains resilient, first-time buyers continue entering the market and banks are approving more home loans than a year ago.
Commercial Property
Industrial property continues outperforming while quality office and mixed-use assets are attracting renewed investor attention.
Listed Property
REITs continue benefiting from improving investor sentiment and greater stability in the interest rate outlook.
Offshore Investors
International demand remains exceptionally strong, particularly in the luxury sector where foreign buyers continue reshaping the premium residential market.
Development Watch
Residential, logistics and mixed-use developments continue expanding as developers position themselves ahead of the next growth cycle.
Property has always rewarded investors who think beyond today's headlines.
Today's decision reinforces exactly why.
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MARKET SNAPSHOT
The Numbers That Matter |
| • | Repo Rate: 7.0% |
| • | Prime Lending Rate: 10.5% |
| • | National House Price Growth: 5.1% |
| • | 39% of homes above R20 million purchased by foreign buyers |
| • | 48% of all home loan applications from first-time buyers |
| • | 83.9% average home loan approval rate |
| • | 56.9% of applicants requested 100% home loans |
| • | 10.3% average Western Cape house price growth |
| • | 11.1% Cape Town house price inflation |
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THIS WEEK’S BIGGEST PROPERTY STORIES
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INSIDE THIS MONTH’S REIMAG
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| • | Exclusive Lightstone Market Report |
| • | Foreign Buyers Reshape South Africa |
| • | The Psychology of Wealth |
| • | Building Affordable Cities |
| • | Turn Your Home Into a Wealth-Building Machine |
| • | Clicks vs Bricks |
| • | The First Property Is Always the Hardest |
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As we head into the weekend, one thing is becoming increasingly clear. The South African property market is proving remarkably resilient. Despite higher living costs, global uncertainty and slower economic growth, buyers continue buying, banks continue lending and investors continue finding opportunity.
Markets move in cycles. Successful investors move with conviction. Whether you're buying your first property, expanding your portfolio or simply watching the market, remember that the biggest gains are rarely made by waiting for perfect conditions. The market doesn't reward those who wait for certainty. It rewards those who recognise opportunity before everyone else does.
QUOTE OF THE WEEK
"In the middle of difficulty lies opportunity.” ALBERT EINSTEIN
Question of the Week
Do you think the SARB's next move will be:
☐ Rate Cut
☐ Hold
☐ Rate Hike
Reply to this email.
Have a productive, informed and successful weekend.
Neale Petersen
REI: Founder & Editor-in-Chief
Independent Property Intelligence since 2007
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