The South African Reserve Bank’s Monetary Policy Committee has raised the repo rate by 25 basis points to 7.25%, pushing the prime lending rate to 10.75%. This is the second rate hike of the year, taking prime to its highest level since May 2025.
Industry experts note that while the increase will pressure consumer affordability—especially for first-time buyers—the property market remains resilient due to strong buyer demand, competitive bank lending, and seasonal momentum. Property leaders are divided on the decision: some view it as a necessary response to global inflationary risks and high oil prices, while others argue the hike was avoidable since domestic inflation remains relatively well-contained.
Key Takeaways by Industry Leader
- Rhys Dyer (ooba Group): Highlights that despite domestic inflation easing (4.4% in August), global inflationary risks continue to pressure the interest rate outlook. He notes the lending environment has otherwise been relatively stable.
- Samuel Seeff (Seeff Property Group): Argues the hike was unnecessary and driven by temporary factors like oil prices rather than domestic demand. He warns that high rates have stifled market growth, keeping transaction volumes 16% below pre-pandemic levels.
- Herschel Jawitz (Jawitz Properties): Expects short-to-medium-term pain for consumers, but believes market activity will remain firm because buyer demand is outstripping housing supply, keeping house price growth resilient.
- Ryan Greeff (Quay 1): Views the hike as an expected reaction to the Middle East conflict and oil prices. He notes that seasonal motivation (spring/summer buying and relocations) will keep buyers in the market, but warns that the window to transact under workable conditions is narrowing.
Read the article in Property Professional
https://propertyprofessional.co.za/2026/09/28/mpc-lifts-repo-rate-to-7-25-as-oil-shock-outweighs-easing-inflation/
