The decision by the South African Reserve Bank’s Monetary Policy Committee (MPC) to lower interest rates by 25 basis points from 7% to 6.75% has been welcomed by Tyson Properties CEO, Chris Tyson.

He says that although 2025 has been a turbulent year for the economy overall, a series of smaller interest rate cuts since September 2024 has accumulated into good news for the property sector. With reductions now reaching the 150-basis point mark, he believes this could continue to positively influence the entire property sector into 2026. 

However, Tyson’s optimism is not solely based on interest rates.

He is encouraged by the establishment of a new inflation target at 3%, which immediately replaces the previous target range of 3 to 6%. This will apply over the next two years and is expected to not only reduce inflation expectations but also create space for lower interest rates. This supports household spending and business investment, thereby boosting economic growth and job creation.  

The second is a cautiously optimistic mid-term budget that forecasts real GDP growth of 1.2 per cent for 2025, more than double the economic growth in 2024. Moreover, this recovery is expected to continue to grow over the medium term, at an average of 1.8 per cent between 2026 and 2028. 

This could signal to property investors on the fence that now might be the time to enter the market. He notes that since the end of 2024, there has been a cautious revival in the residential property sector, particularly in the lower and mid-value segments where lower interest rates have made affordability improvements most noticeable.

The prospect of additional interest rate cuts could attract more new buyers into the property market. ,
However, he admits that many potential buyers remain understandably cautious.  

Tyson suggests that the beginning-of-the-year service charge increases, which can include everything from rates, water, and electricity to annual insurance premium rises, are likely to keep inflation above the Reserve Bank’s preferred 3% band, as is currently the case. 

“Both bonuses and salary increases are likely to be subdued due to restrained economic growth, poor global economic performance, and ongoing tariff turbulence and geopolitical tensions that remain unresolved. People need to decide when to buy a home based on their financial circumstances, and that might not be the right time at present. However, a cautious investor planning for the future is a wise investor, and the property sector should support this approach,” Tyson suggests. 

He believes it is this investor who will ultimately benefit from the resumption of interest rate cuts by mid-2026 when inflation stabilises around the 3% mark and household disposable income faces less stress. 

In light of this, Tyson advises both existing homeowners and those considering buying properties to prioritise sustainable investments. That could mean saving end-of-year bonuses towards a substantial deposit, which will not only secure a pre-approved mortgage and favourable rates from lenders but also ensure bond repayments align with overall household spending. 

As interest rates settle into a short-term holding pattern, Tyson also advises that people closely review unnecessary expenses such as unused data contracts or subscriptions: “Make sure that any increases in insurance premiums take into account any depreciation in assets and shop around for comparative packages that might save money. In short, it is a good idea to find those small potential savings in multiple areas that add up to a larger sum that paves the way for a comfortable bond repayment on a property asset that will appreciate.”

Most importantly, Tyson is confident that further interest rate cuts will make property even more affordable in 2026. He encourages those considering buying their first apartment or home to start exploring options: “Start talking to a property professional. At Tyson Properties, we have a team that will guide both new buyers and second-time purchasers who are looking to expand their horizons while considering the challenges within the current business climate,” he concludes. 2024 growth rate and water to electricity, and unresolved geopolitical tensions.