The recent decision by the South African Reserve Bank (SARB) to cut the repo rate by 25 basis points, bringing it down to 7.75%, has been welcomed by the property market and the broader economy. This adjustment lowers the prime lending rate to 11.25% and marks the second successive rate cut this year, totaling a 50bps reduction. Samuel Seeff, chairman of the Seeff Property Group, notes that while the move is positive, the Bank missed an opportunity to deliver a more impactful 50bps cut. With inflation dropping to a surprising low of 2.8%—below the Reserve Bank's target range of 3%-6%—there was room for a larger reduction to provide a stronger economic stimulus.This rate cut aligns with recent international trends, as central banks in the US, UK, and EU have all implemented rate reductions. Locally, Seeff emphasizes the need for further action to reignite economic growth, drive job creation, and lower interest rates to support these goals. Areas experiencing growth in 2024, such as the Western Cape and other coastal regions, are likely to see price increases of 15%-20% due to diminishing stock and rising demand.Seeff remains optimistic, highlighting the potential for a vibrant property market driven by lower interest rates, declining inflation, and improving economic conditions. However, he underscores the need for continued rate cuts to sustain momentum and unlock the full potential of the economy. As a result of the 25bps reduction, homeowners will benefit from slightly reduced mortgage repayments, offering some financial relief as the year comes to a close.
As the holiday season approaches, we at Seeff Pinelands want to take a moment to express our heartfelt gratitude for your trust and support throughout the year. Whether you’ve worked with us to buy, sell, or rent a property, or simply engaged with us as part of the community, your confidence in our team means the world to us. This year has been filled with exciting opportunities and challenges, and we’re incredibly proud to have shared those moments with you. It’s clients like you who inspire us to continue striving for excellence and innovation in everything we do. From all of us at Seeff Pinelands, we wish you and your loved ones a joyful holiday season filled with warmth, happiness, and cherished memories. May the New Year bring you health, prosperity, and exciting new opportunities. Thank you once again for allowing us to be part of your journey. We look forward to continuing to serve you in the year ahead.