Is SA really a buyer's market despite record interest rate?

Zain Johnson speaks to Brett Leon, Managing Director at Lew Geffen Sothebys.

Homeowners anxiously await possible relief as the repo rate remains at 8.25%, a 15-year high since mid-2023. 

Based on a R2 million home, those who bought with a 20 year bond in 2022 with a prime interest rate of 9% will have seen a whopping R3680 increase in their repayments from last year.

But Leon says there does look to be some relief on the horizon.

"Since Covid, interest rates have been steadily rising and so far it's remained quite the same and we're waiting for those interest rate cuts to ease the pressure off."

Brett Leon, Managing Director - Lew Geffen Sothebys 

Leon says those who are buying property right now, are certainly buying at the higher interest rate, but he's hopeful home loan payments will go down later in the year.

"Right now it may be quite tough, but hopefully this coming year, the interest rate will drop and will make things a lot better for everybody."

Brett Leon, Managing Director - Lew Geffen Sothebys 

Leon adds that in Cape Town particularly, buyers are anxious and being more conservative about what they can afford.

Others are choosing to eschew the property ladder all together.

" A lot of people are looking for homes to rent rather than to buy."

Brett Leon, Managing Director - Lew Geffen Sothebys 

The problem is that it's become a landlord's market and properties have become very expensive in the Mother City, says Leon.