The reality of the SA property market: balancing tight budgets and buyer confidence

Even with inflation rising to 4%, property prices are still growing in real terms, if only marginally.

South Africa's residential property market is primarily propelled by sentiment and affordability.

According to Heschel Jawitz, CEO of Jawitz Properties, the most recent interest rate increase from the South African Reserve Bank (SARB) will likely put both of these factors to the test.

Delivering the Statement of the Monetary Policy Committee (MPC) last week, Lesetja Kganyago, Governor of the South African Reserve Bank(SARB), said the committee decided to increase the policy rate by 25 basis points, to 7%, effective from May 29.

He says that over the last six months, the residential market has benefited from falling interest rates and improved consumer confidence.