Reserve Bank cuts repo rate by 25 basis points.
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GUEST - Thabani Ndwandwe, Chief Risk Officer at Standard Bank
The latest interest rate cut could mark a turning point for South Africa’s residential property market. The South African Reserve Bank has reduced the repo rate by another 25 basis points, bringing the prime lending rate down to 11%. This is the third rate cut since September 2024, and the first time the prime lending rate has been at this level since May 2023.
The two rate cuts introduced at the end of 2024 appear to have already sparked some recovery in residential property activity. Standard Bank observed a notable increase in home loan applications between Q3 and Q4 2024, reflecting improving buyer sentiment. This, combined with better economic outlooks, has encouraged sellers to price properties more competitively and motivated buyers to take action in select regions.
The latest interest rate cut could mark a turning point for South Africa’s residential property market. The South African Reserve Bank has reduced the repo rate by another 25 basis points, bringing the prime lending rate down to 11%. This is the third rate cut since September 2024, and the first time the prime lending rate has been at this level since May 2023.
The two rate cuts introduced at the end of 2024 appear to have already sparked some recovery in residential property activity. Standard Bank observed a notable increase in home loan applications between Q3 and Q4 2024, reflecting improving buyer sentiment. This, combined with better economic outlooks, has encouraged sellers to price properties more competitively and motivated buyers to take action in select regions.
