The South African Reserve Bank’s decision to lower interest rates has been met with relief across the property market, providing a much-needed lift in affordability and buyer sentiment. This adjustment is especially significant for bond-dependent buyers who have faced considerable pressure amid high borrowing costs.
Michael Lenz, CEO of TransBridj, explains that the rate cut could inject new energy into a market that has been grappling with sluggish activity. “Any reduction in rates is positive news for buyers relying on home loans. It opens the door for new buyers to enter the market and gives existing buyers an opportunity to move up the property ladder,” says Lenz.
While the rate cut signals a positive shift, Lenz cautions that the full benefits may take time to materialise amid ongoing economic challenges. “We are seeing early signs of increased buyer confidence and improved traction for sellers, but funding hurdles remain a key obstacle. Upfront costs like compliance and municipal fees continue to slow down property transfers,” he says.
Estate agents could also experience a welcomed boost as market sentiment shifts. “This decision offers hope and renewed momentum. Our platform supports this positive trend by advancing commissions and covering seller costs within 24 hours, helping transactions close faster in this more favourable environment,” adds Lenz.
With conditions improving, the coming months may present a valuable opportunity for buyers and sellers to capitalise on these developments.
