“The South African Reserve Bank’s cautious stance keeps lending rates high, limiting affordability for many prospective homeowners.”
The SARB’s decision to maintain the repo rate at 7% translates to a prime lending rate of 10.5%, keeping mortgage repayments high. While this stabilizes inflation concerns, it restricts affordability for new buyers. Economic recovery signs, such as improved mining output and retail sales, provide optimism, but unemployment and loadshedding remain challenges. Real estate continues to serve as a store of value, with demand concentrated in affordable housing zones.
