What now for property buyers and sellers?
The market remains active, with transaction volumes remaining steady compared to last year.
While the recent interest rate hike was certainly not what the property market had hoped for, the underlying fundamentals of the real estate sector remain stable and resilient.
Importantly, says Samuel Seeff, chairperson of the Seeff Property Group, we must remember that the higher inflation and borrowing costs are temporary market conditions, attributed to the conflict in the Middle East. While the prime rate is now higher at 10.75%, it is still lower compared to what it was at the start of 2025.
Given that real estate is fundamentally a long-term commitment, buyers and sellers should therefore not unnecessarily delay or hold off on their property decisions, he says. Despite these broader economic headwinds, the market remains active with transaction volumes remaining steady compared to last year’s levels.
At the end of the day, he says there will always be a need for people to buy and sell homes regardless of shifting economic or property cycles. While property buyers and sellers will need to adjust to the higher borrowing costs and market impact, he says good opportunities remain actively available for those ready to capitalise on them.
Well-priced properties continue to attract demand. We see for example that in many areas properties are selling faster compared to prior years due to lower stock levels. For property buyers, navigating the current climate requires a practical reassessment of household affordability.
Buyers will now need to bear in mind that the interest rate hike has increased monthly bond repayment costs. On loans between R1m and R3m, this equates to an additional R168 to R506 per month depending on the interest rate and term of the loan.
Buyers will therefore need to ensure their gross monthly income can comfortably cover these updated thresholds while leaving a sensible financial buffer to absorb potential future rate shifts.
If tighter lending criteria or stricter budgets stretch your dream home out of reach, remain adaptable by considering a slightly smaller property or exploring suburbs that offer better value. Putting down a bigger cash deposit can also reduce the monthly repayments and create a financial buffer, says Seeff.
Importantly, obtaining a formal pre-qualification through a bond originator such as ooba means buyers can ensure they know exactly how much they qualify for before starting their house hunting process. This way they can find the property that appeals to them and put in a confident offer so as not to lose out.
For property sellers, achieving success in today’s market relies on realistic positioning and strategic presentation. Higher interest rates tend to shrink the overall pool of active buyers and tighten individual budgets.
While overall demand remains persistent, buyers are more likely to examine price tags far more critically, making it essential to align asking prices with current market trends from the start.
Sellers should also be prepared to approach negotiations with flexibility, as cautious buyers may be inclined to present lower offers. Working closely with an experienced property professional will help you accurately gauge local market sentiment rather than holding out for an unrealistic price, especially if you need to, or want to sell right now.
Lastly, ensure the property is well presented. Aside from the obvious maintenance and repairs, it should represent value for the price you are asking. Highlight value-adding features such as solar power, boreholes, or low-maintenance gardens to offset utility pressures.
Issued by Gina Meintjes
