The South African economy contracted by a staggering 51% in Quarter 2 of 2020, as the country reeled from the consequences of the COVID-19 enforced lockdown, Statistician-General Risenga Maluleke has revealed.

The further reduction of the repo rate by 25 basis points to an all-time low of 3.5% takes the prime interest rate down to 7%, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

The South African Reserve Bank (SARB) has cut the Repurchase (repo) rate by 50 basis points.

Kim Pfaff-Karg, BSc Property Studies (Honours) is the Chief Investment Officer at Spear REIT Limited, a Real Estate Investment Trust (REIT) listed on the Johannesburg Stock Exchange (JSE).

The Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) has cut the interest rate by 100 basis points.

With the South African Reserve Bank’s announcement of interest rates cut of 100 basis points and earlier transfer duty exemption for properties below R1 million by the Minister of Finance, local regulations have made it attractive for first-time home buyers to enter the market.

In line with market expectation, the Reserve Bank has cut the repo rate by 100 basis points to 5.25% per annum, Governor Lesetja Kganyago announced on Thursday.

The Reserve Bank has reduced the repo rate by 25 basis points to 6.25% in line with market expectation.

This week’s SARB interest rate decision not expected to change property market conditions meaningfully.

Signs that the residential property market is beginning to stabilise.