Johannesburg – The South African Reserve Bank (SARB) decision to pause interest rate cuts today did not come as a surprise for property expert Greg Dart, a director at the High Street Auction Company.
This week’s revelation that the Consumer Price Index (CPI) decreased by 0,1% between July and August, with four of thirteen categories in the inflation basket and household equipment and routine maintenance dipping, sparked some optimism about an interest rate cut.
However, this was not to be, and businesses continue to make adjustments to counter broader financial risk, Dart noted.
Regarding property investment, Dart said that location was now more important than ever, with key hubs such as the Western Cape and parts of KwaZulu-Natal showing early signs of recovery and representing good options.
In addition, the MPC continues to target CPI at a conservative 3% rather than the broader 3% to 6% that has prevailed up until now.
Earlier today, Thursday, 18 September 2025, the SARB announced that it had decided to keep interest rates on hold – meaning the repo rate remains at 7%.
SARB Governor Lesetja Kganyago said the Monetary Policy Committee (MPC) was not unanimous in making the decision.
He said four MPC members preferred to keep interest rates on hold, while two others favoured a 25 basis point cut.
Commenting on the matter, Chris Tyson, CEO of Tyson Properties, believes South Africans are extremely resilient and said property owners can be positive comparing this September to last year.
He notes that interest rates have fallen by a cumulative 125 basis points (1.25%) since September 2024.
Although acknowledging the relief that rate cuts offer to stressed households, Tyson urged property owners to budget wisely and repay mortgages at an existing slightly higher level whenever possible to reduce the overall repayment period.
His advice to sellers to price properties wisely still stands.
He also encourages investors to take advantage of the current buyers’ market to invest in income-generating properties, as the already thriving rental market is likely to continue its upward climb while economic uncertainty and low growth persist.
Overall, he recommends maintaining sound financial habits when managing household budgets.
His tips to help South African homeowners remain economically resilient are:
- Try to keep your repayments on loans at current levels if you can. That will enable you to pay off your home loan faster and become less vulnerable to future rates hikes.
- Create or stick to a strict household budget that will enable you to control disposable income.
- Review your insurance. Remove listed items such as laptops and phones that you are no longer using and ensure that car insurance is adjusted according to the age and resale value of your vehicle.
- Maintain your home. Keep your property in good condition so you do not end up with bigger issues you need to pay to have repaired.
- Create a passive income stream by leasing a cottage or create an AirBnB by converting an unused space on your property.
