1008618412__20260503__0 The May interest rate increase landed hardest where affordability and borrowing capacity are most tightly linked to rates-the mainstream residential market, where it has raised repayments and tightened the amount buyers can qualify for.
The July interest-rate decision will find South Africa’s property market as a two-speed market.
This is as the broader residential market remains under real affordability pressure, with higher borrowing costs weighing on finance-dependent buyers and a consumer already carrying a heavy cost-of-living burden, says Keegan Steyn, the founder for South Africa’s at Forbes Global Properties.
He adds that the pressure there is genuine and should not be understated.
“The top end of the market sits in a different position. Our clients are predominantly high-net-worth local and international buyers whose decisions turn far less on where the repo rate lands in any given month, and far more on the quality and rarity of the asset," Steyn says.
