\u201cShocks are multiplying, and vulnerabilities are increasing. The global economy is not in a healthy space,\u201d he said.<\/p>\n\n\n\n
Kganyago also warned that inflation is likely to rise above 5% later this year and early next year, largely because of higher fuel prices, before returning towards the 3% target by the end of 2027.<\/p>\n\n\n\n
Seeff Property Group chairman Samuel Seeff said the rate increase was \u201canother blow to consumers and the struggling economy\u201d.<\/p>\n\n\n\n
He argued that the current inflation spike was driven by external factors, such as oil prices, rather than by strong domestic demand.<\/p>\n\n\n\n
\u201cThe higher interest rate will do little to mitigate external cost shocks but will inflict real financial pain on households and businesses,\u201d he said.<\/p>\n\n\n\n
Seeff said higher borrowing costs could further weaken consumer confidence and property market activity, while increasing monthly bond repayments and affordability pressures for first-time buyers.<\/p>\n\n\n\n
Pam Golding Property chief executive Andrew Golding said the rate increase would place \u201cadditional pressure on prospective homeowners\u201d, particularly first-time buyers who are more sensitive to monthly repayments.<\/p>\n\n\n\n
However, he said banks were continuing to support the market through competitive lending products, including zero-deposit and cost-inclusive home loans.<\/p>\n\n\n\n
According to ooba Home Loans data cited by Golding, the share of first-time buyer applications for cost-inclusive loans increased from about 3% in 2021 to nearly 16% in early 2026, while approval rates reached 88.8%.<\/p>\n\n\n\n
Lew Geffen Sotheby\u2019s International Realty CEO Yael Geffen said the rate increase would reduce what some buyers can afford and could reduce the number of buyers competing for properties.<\/p>\n\n\n\n
\u201cA quarter of a percentage point increase may look small on paper, but property affordability is determined at the household level,\u201d she said.<\/p>\n\n\n\n
Geffen said some buyers could move to cheaper properties or different locations, negotiate more aggressively, or delay purchases, while buyers with stronger finances may continue to transact.<\/p>\n\n\n\n
At the luxury end, she said the impact was more likely to affect how buyers allocate their capital than to determine whether they could afford a property.<\/p>\n\n\n\n
\u201cA 0.25 percentage-point rate increase isn’t necessarily going to make someone walk away from a R20 million home, but it may make them question whether they want to spend up to R50,000 a year more on the home loan repayment,\u201d she said.<\/p>\n\n\n\n
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