The South African Reserve Bank’s decision to keep the repo rate unchanged has been welcomed by property market experts, who say the move provides stability and supports growing confidence among homebuyers.
With the repo rate holding at 6.75% and the prime lending rate at 10.25%, experts say the steady rate environment provides much-needed certainty for both homeowners and prospective buyers at the start of 2026.
Toni Anderson, Head of Home Services at Standard Bank, says the decision strengthens an already improving residential property market.
“While interest rates remain unchanged, the cumulative effect of earlier rate cuts has already begun to improve affordability and buyer sentiment. Since the easing cycle started towards the end of 2024, we’ve seen increased engagement from prospective homeowners, with steady home loan application activity reflecting renewed confidence in the market.”
Anderson notes that a stable rate environment allows buyers to plan more effectively and make balanced decisions. For sellers, it supports realistic pricing, which remains key to successful transactions.
She adds that holding rates steady gives households time to adjust to previous relief, while creating a supportive backdrop for a gradual recovery in housing demand across select regions. For buyers who have been waiting on the sidelines, this period of stability may offer a good opportunity to enter the market while affordability remains improved and competition is measured.
Gavin Lomberg, CEO of ooba Home Loans, agrees that the pause in rate changes supports positive momentum in the property sector.
“A steady interest rate environment, improved consumer affordability and competitive bank lending will continue to drive the acceleration of South Africa’s property industry throughout 2026.”
He points out that the market is still benefiting from the impact of six rate cuts since the easing cycle began, leaving lending rates significantly lower than they were just over a year ago.
According to Lomberg, improved affordability is already visible. He says that in the third quarter of 2024, before the first cut in the cycle, the average effective home loan rate for ooba customers was around 11.2%. By late 2025, improved bank concessions and lower rates had brought that down to about 9.6%.
This has translated into meaningful monthly savings. On an average bond of about R1.37 million, monthly repayments have dropped by roughly R1,500 compared to pre-cut levels, easing pressure on household budgets.
Lomberg says that while the Reserve Bank has struck a cautious tone due to global uncertainty, local conditions remain supportive.
“If inflation remains contained, the rand stays resilient, and fuel prices remain favourable, there is scope for further easing later in the year,” he says, adding that additional cuts could further stimulate demand from first-time buyers and existing homeowners.
