18 September 2025

The South African Reserve Bank (SARB) has confirmed that the repo rate will remain unchanged at 7%, keeping the prime lending rate at 10.50%. While another rate cut would certainly have been welcomed by many, today’s announcement comes as no surprise – and, according to experts at the Rawson Property Group, may be exactly what the market needs right now.

“Predictability is a powerful tool in today’s economic environment,” says Craig Mott, National Sales Manager for the Rawson Property Group. “When rates are stable, it gives buyers and sellers the confidence to act with clarity, rather than hesitation.”

Local and global challenges still loom

While inflation remains within the SARB’s target range, broader economic indicators paint a more complex picture. Business confidence has softened in recent months, affected by new international tariffs and ongoing logistical challenges at South Africa’s ports and railways.

According to Leonard Kondowe, National Manager at Rawson Finance, these factors reinforce the SARB’s cautious approach.

“There are real global and local pressures at play, and the SARB is wisely choosing to hold the line rather than make a premature move,” says Kondowe. “That’s the kind of financial leadership that protects both homeowners and the broader economy.”

What this means for buyers

Despite the unchanged rate, affordability remains stable, and mortgage interest remains manageable. This, says Mott, is an opportunity – particularly for those looking to enter the market for the first time.

“There’s still a window for buyers, especially in that sweet spot between R1.5 million and R2.5 million,” he explains. “Properties in that range are in high demand, and serious buyers who are prepared – especially with prequalification – are securing great deals.”

Kondowe agrees, adding that Rawson Finance continues to offer free prequalification to help buyers understand their financial position upfront.

“Prequalification takes the guesswork out of buying,” he says. “It also strengthens your position when competing with other offers – something we’re still seeing, even in a relatively cautious market.”

What this means for sellers

While steady interest rates may not spark a surge of new buyers, Mott says it’s business as usual for well-priced, well-marketed homes.

“Buyers are active, but selective,” he says. “Overpricing is still the fastest way to lose momentum on a sale. Sellers need to work with agents who understand current market dynamics and can present their property to the right audience with the right strategy.”

What this means for homeowners

For current homeowners, a steady interest rate means predictable repayments – a valuable advantage in today’s uncertain economic climate.

“Now’s the time to take stock and make intentional financial decisions,” says Kondowe. “If you’re comfortable with your bond repayments, consider putting any spare cash into extra repayments or even exploring refinancing options if your financial profile has improved.”

He adds that this kind of forward-thinking can yield significant long-term savings – particularly in a stable rate environment.

“Even without a rate change, reducing your bond balance faster means you’ll pay less interest over the lifetime of your loan,” Kondowe explains. “It also builds equity more quickly and improves your financial flexibility down the line.”

A market focused on strategy, not speculation

Despite a subdued global growth forecast and continued structural challenges at home, both Kondowe and Mott are optimistic about South Africa’s property market.

“We’re seeing a shift toward more mature, strategic decision-making,” says Mott. “It’s not a boom cycle, but it’s not a bust either. It’s a market that rewards preparation, good advice, and long-term thinking.”

Kondowe adds that there’s still significant opportunity for those who plan ahead.

“Interest rates may be neutral for now, but that doesn’t mean the market is standing still,” he says. “This is the time to get financially ready, explore your options, and position yourself to move when the time is right.”