The South African Reserve Bank has cut the repo rate for the second time this year, by 25bps (basis points). The repo rate is now at 7.75% and the prime rate at 11.25%.
Inflation is now at 2.8%, down from September’s 3.8%. The overall expectation is that the residential property market will show improvement in 2025. According to the Seeff property group, it will be in terms of higher volumes, prices and values.
The rate cut will create a financial relief for households as it means lower repayments of all debt, and the risk of bond defaults will also be lower. Berry Everitt, CEO of Chas Everitt International Property Group, says that credit – dependent buyers will now be able to find more properties within their budget, and become homeowners instead of renting.
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