South Africa's property market is under growing pressure as homeowners, buyers, tenants and developers await the South African Reserve Bank's latest interest rate decision. Industry experts say higher borrowing costs, rising inflation and increasing living expenses have already weakened affordability, with many households struggling to absorb higher bond repayments.
South Africa's property market is under pressure as demand for housing clashes with declining affordability.
Buyers are qualifying for smaller bonds, while existing homeowners face increased repayment costs, says René Moonsamy, the chairperson of the National Debt Counselling Association (NDCA). Developers and investors are also experiencing weaker demand and higher financing costs.
The South African Reserve Bank (SARB) is scheduled to announce its interest rate decision on Thursday, July 23, following the Monetary Policy Committee meeting, a move that could further impact the market.
Asked how the upcoming interest rate announcement will affect the property market, NDCA, the organisation which represents debt counsellors operating in South Africa, said the decision will come at a difficult time for consumers and the property market.
