Interest rate relief is expected soon in South Africa, and the forecasted cutting cycle could have a positive material impact on homeowners.
The South African Reserve Bank is expected to cut interest rates by up to 150 basis points by mid-year 2025, which could result in the average homeowner saving R1,406 per month on their bond repayment.
Investec chief economist Annabel Bishop, however, is also more cautious in calling a September rate cut, pointing to a more moderate November cut or possibly in January 2025. According to Lightstone’s data for the first quarter of 2024, the average property value in South Africa stood at R1,377,014. The table below highlights how much you’ll save on your bond every month if the forecasted 100 bps interest rate cuts come into effect next year.Several property experts have noted that decisions to hold interest rates are disappointing and that the property market needs a rate cut.
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