The South African Reserve Bank’s Monetary Policy Committee hikes interest rate by another 25bps, taking the repo rate to 7.25% and the prime lending rate to 10.75%.

Inflation is down from 7.4% in December 2022 to 7.2% in January 2023 which shows stability. The rate hike however might not be a good sign especially with the Eskom crisis and migration to coastal areas at a high.

This is due to poor service delivery inland. Prices, mainly in regards comparable valuations, in coastal areas are out-of-sorts as properties sell at unprecedented amounts.

This is mainly due to mass migration and buyers willing to spend more than current market value to relocate. The hike also played a role in deterring first time buyers in applying for loans. The property market however is still stable which bodes well for investors and recurring buyers.

Advice to buyers would be to stay vigilant, be prepared and keep control on their current affair.