SA property sector upbeat as interest rate cuts lift market sentiment

SOUTH Africa's major property groups remain cautiously optimistic about growth prospects in the year ahead, citing interest rate cuts in 2025, subdued inflation and improving economic fundamentals as key drivers of renewed activity in the housing market.

- YOGASHEN PILLAY

Dr Andrew Golding, chief executive of Pam Golding Property Group, said a series of interest rate reductions, together with easing price pressures and significant fuel price cuts through 2025 and early 2026, had meaningfully improved household finances and bolstered activity across the national housing market.

“Notably, there was a discernible strengthening in national sales activity both in terms of volume and, more particularly, value during the second half of last year," he said.

While acknowledging the uncertainty inherent in forecasting, Golding said the outlook for 2026 appeared constructive. He expects the pace of domestic economic activity to strengthen further this year, with the possibility of additional interest rate relief in the first half of 2026.

“Furthermore, if the international oil price remains subdued and the rand remains resilient, local price pressures should subside further, providing an additional boost to local household finances and, in turn, the housing market”