MAIN IMAGE: Berry Everitt – CEO of the Chas Everitt International property group, Yael Geffen – CEO of Lew Geffen Sotheby’s International Realty, Stephen Whitcombe – MD of the FIRZT Realty group, Gavin Lomberg – CEO of ooba Home Loans, Samuel Seeff – chairman of the Seeff Property Group, Bryan Biehler – CEO of Huizemark, Craig Mott – National Sales Manager at Rawson Property Group, Leonard Kondowe – national manager at Rawson Finance, Jacqui Savage – national rentals manager at the Rawson Property Group, Silvana dos Reis Marques – franchisee of Leapfrog Property Group Pretoria East & Irene, Ryan Greeff – CEO of Quay 1 International Realty, Chris Tyson – CEO of Tyson Properties, Herschel Jawitz – CEO of Jawitz Properties, Adrian Goslett – Regional Director and CEO of RE/MAX Southern Africa
Editor
The South African Reserve Bank (SARB) ended the year on a positive note, announcing a further 25-basis-point cut to the repo rate, bringing it down to 6.75%, with the prime lending rate now at 10.25%. This marks the sixth rate cut since September 2024, and market analysts say the decision could deliver strong momentum into 2026. While modest, the cut provides meaningful relief and renewed confidence across the residential market, particularly for homeowners and first-time buyers.
Affordability relief – and a strategic opportunity for homeowners
According to Berry Everitt, CEO of Chas Everitt International property group, the cumulative impact of rate cuts since last year is now substantial. He notes that this is the sixth rate cut since September 2024 and that the combined effect “is very meaningful for consumers … especially since it has been combined with a significant decline in the rate of inflation.” A homeowner with a R1.6-million bond, he adds, “is now paying at least R1,500 less per month compared to before the rate-cutting cycle began.” Homeowners are being encouraged to use this window strategically rather than as available spending capital.
Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty, believes the real opportunity lies in treating the rate cut as a wealth-building mechanism. “The most powerful financial decision you can make is to continue paying the same bond instalment you were paying months ago. By doing so, you are not just managing debt, you are aggressively building personal equity and creating monumental long-term wealth.” Geffen says improved affordability and financial discipline could translate into a more stable property market in 2026.
Market optimism builds as buyer confidence rises
A broader sense of optimism is spreading across the sector. Stephen Whitcombe, MD of FIRZT Realty group, says the rate cut “will lower the repayments on all sorts of debts … and will also make it easier for homebuyers to qualify for new home loans.” Importantly, he believes it “will boost consumer confidence in the future of the economy,” but stresses that job creation will be essential to sustain momentum into 2026.
Gavin Lomberg, CEO of ooba Home Loans, notes that home loan applications were up 7% quarter-on-quarter, with approval rates rising to 83.9%, and prequalified buyers achieving 91% approval rates. As rates fall, “we expect to see more first-time buyers entering the market.”
Samuel Seeff, chairman of Seeff Property Group, agrees that progress has been made but believes pressure remains. He argues that if inflation remains within target, another rate cut in early 2026 should be considered. The data supports the sentiment shift.
Momentum across the industry
Confidence is building across multiple segments. Bryan Biehler, CEO of Huizemark, believes the cut is more than just festive relief: “For homeowners, buyers, and the real estate sector, this reduction provides meaningful relief. On every bond, affordability improves, confidence lifts, and families who have been sitting on the sidelines can finally start planning again.” He adds that a tighter inflation target signals “that South Africa is turning a corner, and our industry is perfectly positioned to help drive that progress forward.”
At Rawson Property Group, buyer engagement has already been rising. Craig Mott, national sales manager, says, “We’ve seen a steady increase in buyer engagement throughout the year, and this latest rate cut is likely to accelerate that momentum.” Leonard Kondowe, national manager at Rawson Finance, says affordability remains the defining theme heading into 2026: “With rates softening and banks eager to lend, it’s a great time to be a buyer, provided you’re financially ready.” Investor interest is also growing, notes Jacqui Savage, national rentals manager at Rawson Property Group, particularly in sectional title and lifestyle-rich areas.
Silvana dos Reis Marques, franchisee of Leapfrog Property Group Pretoria East & Irene, says the next phase of market activity may hinge on buyer readiness rather than rate movements alone. “In Pretoria East and Irene, we’re encouraging buyers to get their paperwork and pre-approvals in order now. The rate cut helps, but real opportunities go to those who are prepared. Sellers are also becoming more realistic on pricing, which creates a healthier balance between the two sides of the market.”
Regional strength: Cape Town sets the pace
In Cape Town, confidence is already translating into activity. Ryan Greeff, CEO of Quay 1 International Realty, says “a crucial psychological shift is underway: buyers are planning for the future with greater conviction, and property is returning to the centre of financial planning discussions.” With tight supply and rising confidence, he cautions that prices could begin to strengthen heading into the summer season.
Investing with caution still matters
While sentiment is improving, some experts stress that strategy remains vital. Chris Tyson, CEO of Tyson Properties, advises: “Find those small potential savings in multiple areas that add up to a larger sum that paves the way for a comfortable bond repayment on a property asset that will appreciate.” Tyson believes further cuts could arrive by mid-2026 if inflation stabilises near the 3% target, but warns buyers not to overextend themselves.
Jawitz and RE/MAX see positive signs ahead
The easing cycle has also been welcomed across major brands. Herschel Jawitz, CEO of Jawitz Properties, believes the rate cut will be “well received by consumers, homeowners and buyers alike,” particularly as banks compete on lending rates.
Adrian Goslett, regional director and CEO of RE/MAX Southern Africa, agrees: “The decision by the SARB to lower interest rates during the current global economic climate is a favourable approach to aid in financial relief for many South Africans.” He believes it may “signify the start of renewed growth in the property market as we head into the new year.”
2026 Outlook
While another rate cut is not guaranteed in the short term, experts agree that buyer confidence is rising, affordability is improving, and sentiment is shifting. If inflation continues to stabilise and banks maintain their appetite to lend, 2026 may mark the beginning of a more active and sustainable phase for South Africa’s residential property market.
