While lower interest rates can provide short-term relief and stimulate demand, John Loos argues they often encourage higher household borrowing and indebtedness over time. Historical evidence suggests that growing debt levels make households increasingly vulnerable to future rate hikes, limiting the long-term benefits of monetary stimulus. Sustainable economic growth, he contends, depends less on cheap credit and more on structural reforms, investment, productivity gains, and macroeconomic stability.

Golden Section Capital’s May 2026 SA Listed Property Review finds South African REIT fundamentals largely resilient, with stronger earnings, lower vacancies, improved balance sheets, and declining debt costs. Despite solid corporate results, listed property returns remained muted as the South African Reserve Bank raised interest rates, increasing valuation pressure. The report also highlights significant sector deal activity, consolidation trends, and the SA REIT Association’s new reporting standards, designed to improve transparency, comparability, and investor confidence.