Property industry leaders on Thursday said the decision will increase monthly bond repayments for homeowners and prospective buyers already battling rising fuel prices and higher living costs.
South Africa’s residential property sector is expected to come under renewed pressure following the SA Reserve Bank’s decision to raise interest rates by 25 basis points, with property groups warning that higher borrowing costs will squeeze household finances and slow market momentum.
The increase pushed the repo rate to 7% and the prime lending rate to 10.5%, following a rise in inflation, with the Consumer Price Index (CPI) climbing to 4% in April — the highest level recorded since August 2024.
Property industry leaders on Thursday said the decision will increase monthly bond repayments for homeowners and prospective buyers already battling rising fuel prices and higher living costs.
Stephen Whitcombe, managing director of the FIRZT Property Group, said the increase highlighted the importance of careful financial planning for buyers entering the market.
