Real estate groups say buyers should not delay entering the property market despite renewed pressure from rising interest rates and living costs.
South Africa’s residential property sector has warned consumers to focus on affordability and financial resilience after the South African Reserve Bank (Sarb) increased the repo rate by 25 basis points, pushing the prime lending rate to 10.5%.
While the hike is expected to place additional strain on household finances already under pressure from rising fuel prices, electricity tariffs and broader inflationary pressures, industry leaders say the property market remains more resilient than many expected.
Berry Everitt, CEO of the Chas Everitt International property group, said the increase should serve as a reminder for buyers to purchase well within their means.
“The fact is that they are not only facing slightly higher borrowing costs, but also contending with rising fuel and food prices, the municipal rates and utility tariff increases to be implemented in July and broader inflationary pressures that are affecting almost every other area of household expenditure,” said Everitt.
