South Africa’s property market is still seeing large amounts of activity, despite high interest rates.
“Whilst the original increases had a minimal impact, we have seen the increases from the middle of 2022 and 2023 really shift the market. On the sales side, the market has moved from a sellers market to a buyers market in general.” Gray said. He added that the most obvious effect of the new interest rates on buyers is affordability, with buyers no longer able to qualify for the same level of finance.
“This is almost an unfair comparison, and it is better to compare the market to 2019, which shows a very different picture.” “In the low-interest rate cycle, people who were renting took advantage of the ‘cheap’ money and bought, but that has reversed now.” He said that homeowners will struggle to make mortgage payments if rates are increased, and the number of defaults will increase.