PROPERTY NEWS - Following a series of interest rate cuts, most forecasts now predict interest rates to hold steady at the next interest rate announcement scheduled for 18 September 2025, although there is still room for further rate cuts possibly later in the year.
According to Adrian Goslett, regional director and CEO of REMAX Southern Africa, a lot will depend on how inflation performs and what the US Fed will do just days before this announcement.
“If inflation edged nearer to the SA Reserve Bank’s preference of 3%, this would keep hopes for a cut alive; a re-acceleration, on the other hand, would firmly entrench a September hold. Similarly, if global markets cut their rates (and if the rand holds steady), this would make later SARB cuts easier, but doesn’t necessarily force one in September,” Goslett states.
For debt holders, the most prudent expectation is for rates to remain unchanged at 7.00% in September. “If inflation and the rand behave, the next 25 bps cut is more likely at a subsequent meeting (e.g., November) rather than next month,” says Goslett.
In terms of how this might affect the local property market, Goslett explains that although there has been reductions in the prime lending rate, rates still sit well above pre-pandemic levels, continuing to constrain buyer affordability. Despite this, the REMAX network has managed to defy the trend, demonstrating strong sales growth, rapid sale turnover, and particularly heated activity in coastal and high-demand provinces like the Western Cape.
“That said, meaningful gains in broader housing activity are likely dependent on further rate reductions or a significant improvement in economic conditions.
"The early signs of easing interest rates have injected some buoyancy into the property market; if rate cuts continue, they could help revive broader transaction activity,” says Goslett.
Goslett remains optimistic about future cuts but concedes that September’s decision will most likely leave rates unchanged at 7.00%.
“With affordability still constrained but signs of resilience evident in the housing market, the next decisive shift may well come later in the year. Until then, the property sector continues to adapt, demonstrating both strength and opportunity in an uncertain rate environment,” he concludes.
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