Insights Into The 2025 Property Market Landscape, With A Particular Focus On Last Week's Rate Cut Announcement
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Guest: Renier Kriek, Managing Director At Sentinel Homes.
The South African Reserve Bank’s decision to cut the repo rate by 25 basis points to 7.00% offers modest relief to the residential property market. This reduces the prime lending rate, used for calculating home loan interest rates, from 10.75% to 10.50%. The modest reduction translates into an estimated saving of around R250 per month on a R1.5 million home loan over 20 years, nominally easing affordability for buyers and existing homeowners.
Today’s cut brings total interest rate relief in SARB’s current cutting cycle, which started in September 2024, to 1%, with the repo rate having been cut from 8% to 7% over the period.
The South African Reserve Bank’s decision to cut the repo rate by 25 basis points to 7.00% offers modest relief to the residential property market. This reduces the prime lending rate, used for calculating home loan interest rates, from 10.75% to 10.50%. The modest reduction translates into an estimated saving of around R250 per month on a R1.5 million home loan over 20 years, nominally easing affordability for buyers and existing homeowners.
Today’s cut brings total interest rate relief in SARB’s current cutting cycle, which started in September 2024, to 1%, with the repo rate having been cut from 8% to 7% over the period.