Property Experts “Not Surprised” by SARB’s Choice to Keep Repo Rate Steady
Johannesburg – Property expert Greg Dart, a director at the High Street Auction Company, anticipated the South African Reserve Bank’s (SARB) decision to maintain interest rates today.
This week’s news that the Consumer Price Index (CPI) dipped by 0.1% from July to August, along with declines in four out of thirteen inflation categories, including household goods and routine maintenance, sparked hopes for a potential interest rate cut.
Nonetheless, that cut did not happen, and Dart highlighted that businesses are continuing to adapt to broader financial risks.
In property investment, Dart stressed that location has become even more vital, with key regions such as the Western Cape and parts of KwaZulu-Natal showing initial signs of recovery and presenting promising opportunities.
Moreover, the MPC is targeting a conservative CPI goal of 3%, diverging from the previously standard range of 3% to 6%.
Earlier today, on Thursday, 18 September 2025, the SARB confirmed its decision to keep interest rates unchanged, maintaining a repo rate of 7%.
SARB Governor Lesetja Kganyago indicated that this decision was not unanimous within the Monetary Policy Committee (MPC).
He noted that four MPC members favored keeping rates stable, while two supported a reduction of 25 basis points.
Chris Tyson, CEO of Tyson Properties, remarked on the resilience of South Africans, indicating that property owners can notice a positive change when comparing this September to last year.
He highlighted that interest rates have fallen by a total of 125 basis points (1.25%) since September 2024.
While acknowledging the reprieve provided by rate cuts for financially stressed households, Tyson advised property owners to budget wisely and aim to pay down mortgages at the slightly elevated existing rates whenever possible, to shorten repayment durations.
His advice for sellers to price properties carefully remains valid.
Additionally, he encourages investors to take advantage of the current buyers’ market for income-generating property investments, as the strong rental market is expected to continue to rise amid ongoing economic uncertainty and slow growth.
Overall, he promotes sound financial practices for managing household budgets.
His recommendations for South African homeowners to withstand economic challenges include:
- Keep loan repayments consistent where possible to facilitate quicker home loan repayment and reduce exposure to future rate increases.
- Create or stick to a strict household budget to manage disposable income effectively.
- Review your insurance policies, removing coverage for belongings like laptops and phones that you no longer use, and adjust car insurance based on the age and resale value of your vehicle.
- Maintain your property properly to prevent larger repair costs later on.
- Consider establishing a passive income stream by renting out a cottage or converting unused space on your property into an Airbnb.
