With the South African Reserve Bank holding the repo rate at 7.75%, the residential property market enters a phase of cautious optimism.

While affordability remains tight - particularly in metros like Cape Town and Johannesburg - steady rates offer a degree of predictability that buyers and developers can work with. Sectional title homes are expected to continue to lead the market, especially among first-time buyers and young professionals seeking secure, low-maintenance living.

A steady rate environment helps sustain this momentum by allowing home buyers and investors to lock in financing without fear of sudden hikes. However, lending remains stringent, and buyers are increasingly opting for smaller units in well-located suburbs like Claremont, Centurion, Bryanston and Durban North among them.

The rental market is likely to remain buoyant. As affordability constraints persist, many would-be buyers are choosing to lease, especially in urban nodes where demand for fibre-ready, secure units is outpacing supply. Developers are responding with more compact, sectional title offerings that align with buyer budgets and lifestyle needs.

Ultimately, while the steady rate may not ignite a buying frenzy, it reinforces market stability. For investors and homeowners alike, the message is clear: plan strategically, focus on fundamentals, and leverage the predictability of SARB’s disciplined stance.