On 20 November 2025, the South African Reserve Bank (SARB) announced a 25-basis-point reduction to the repo rate, bringing it down to 6.75%. This adjustment lowers the prime lending rate to 10.25% – the lowest it’s been in over two years – and signals a continued easing cycle aimed at boosting economic activity and consumer affordability.
Craig Mott, National Sales Manager for the Rawson Property Group, says the move builds on an already noticeable upward shift in market confidence.
“We’ve seen a steady increase in buyer engagement throughout the year, and this latest rate cut is likely to accelerate that momentum,” he says. “It’s arriving at a time when buyers are re-entering the market with purpose, and this just gives them more reason to act.”
BUYER ACTIVITY GAINING GROUND
According to the team at Rawson Finance, bond application volumes have shown healthy growth throughout 2025, with noticeable interest from first-time buyers in particular. Deposit requirements are also becoming more manageable as banks adjust their lending criteria to reflect improved economic stability.
“This shift in accessibility is making homeownership a more achievable goal for many South Africans,” says Mott. “It’s one of the most encouraging trends we’ve seen in the past 18 months.”
FINANCIAL CLARITY IS KEY
Leonard Kondowe, National Manager at Rawson Finance, says affordability is the headline story of 2025 so far.
“With rates softening and banks eager to lend, it’s a great time to be a buyer – provided you’re financially ready,” he says. “That means understanding your affordability, improving your credit profile where needed, and getting prequalified before making an offer.”
Rawson Finance continues to offer free prequalification and comparative bond options across all major banks.
“Prequalification doesn’t just help you budget,” Kondowe explains. “It strengthens your offer in a competitive market. With stock moving quickly in popular price bands, that edge can be the difference between winning and losing a property.”
WHAT THIS MEANS FOR HOMEOWNERS
While a 25-basis-point cut might not seem massive on a monthly repayment, it does create space for strategic financial moves. Kondowe recommends that homeowners continue paying at their previous instalment if possible.
“That extra bit, even just a few hundred rand a month, helps reduce your outstanding loan balance faster,” he says. “Over time, that saves thousands in interest and builds equity more quickly.”
Investor spotlight: buy-to-let appeal grows
Jacqui Savage, National Rentals Manager at the Rawson Property Group, says the current environment is also breathing new life into the rental investment space.
“We’re seeing a surge in tenant demand, particularly in lifestyle-rich locations like the Western Cape, the Garden Route, and parts of KZN,” she says. “With borrowing costs easing and good rental yields on offer, it’s an attractive moment for investors looking to grow their portfolios.”
Savage notes that tenants are increasingly focused on quality of life, convenience, and mobility – trends that favour well-managed sectional title units and mixed-use developments.
REGIONAL DIFFERENCES AND MACROECONOMIC TAILWINDS
While the Western Cape continues to lead the way in property performance, major metros across the country are also showing signs of renewed momentum. Johannesburg, in particular, is benefiting from targeted reforms aimed at improving utilities and freight logistics, while Cape Town’s ongoing infrastructure investments are reinforcing its already-strong market position.
“Infrastructure, inflation control, and investor confidence are all connected,” says Mott. “We’re seeing buyers respond positively to the sense that long-term growth is being prioritised.”
“These aren’t just budget headlines,” Mott adds. “They’re foundational changes that support sustained property growth over the next five to ten years.”
WHAT’S NEXT?
While it’s unclear whether the SARB will deliver another rate cut in the near future, the recent easing trend has already made an impact.
“The key isn’t just cheaper credit,” says Mott. “It’s about stability and the ability to plan with confidence. That’s what really drives decision-making in the property market.”
Kondowe agrees.
“We’re in a market that rewards preparation and long-term thinking. Whether you’re buying, selling, or investing – now’s a great time to explore your options.”
Kabuki
Vusi Thembekwayo – CEO of Motiv8, and Founder of The Inspiration Project, My Growth Fund and Iconoclast: At 25, Vusi Thembekwayo served on the operations board of Metcash Africa. He was tasked with launching a new division, which he built into a R461 million turnover business. He then left to launch his own business in 2013, Motiv8 his own consulting business, which he bootstrapped with speaking engagements. \”In my experience, the only way to succeed is to invest time in your own development and have \”skin in the game.\’ Time enables you to build technical ability and establishes your credibility in the market,\” says Thembekwayo. He went on to become one of the \”dragons\’ on the South African edition of Dragons\’ Den, where he was responsible for allocation over R10 million worth of investment, as well as one of the \”sharks\’ on M-Net\’s Shark Tank. In 2011, he co-founded Watermark Capital Partners, a private equity firm. In 2013, he was appointed non-executive director at RBA Holdings Ltd. In 2014, he founded The Inspiration Project, a tech enabled narrative lab reshaping the story of Africa, qualified to join the National Speakers Association of New York, and founded My Growth Fund, a fund to support business people as they start, build and grow their businesses. In 2015, he founded Iconoclast, a boutique specialist public speaker representation management agency.