Yael Geffen on the repo rate and 2026's property market

As we close a year that has, yet again, been marked by significant economic and political turmoil, the South African Reserve Bank’s final 25 basis point cut feels like a small Christmas present for the nation’s consumers, according to Yael Geffen, CEO of Lew Geffen Sotheby's International Realty.

"It is a modest gesture, but a positive one nonetheless.

"Looking back over 2025, this latest cut brings the total relief for the year to a welcome 75 basis points.

"For a homeowner with a R2 million variable-rate bond, the cumulative saving since the cycle began now sits at a life-changing sum of over R2,100 per month."

In September, when rates were held, Geffen cautioned against seeing this financial breathing room as disposable income.

"That counsel remains unchanged, but is now even more critical. After a long and difficult year, the instinct to use this extra cash for holiday expenses or to offset the relentless climb in the cost of living will be powerful.

"Resist that instinct."

Geffen says this final cut of 2025 is not a year-end bonus; it is a strategic tool.

"The most powerful financial decision you can make is to continue paying the same bond instalment you were months ago. By doing so, you are not just managing debt; you are aggressively building personal equity and creating monumental long-term wealth at a dramatically accelerated pace."

Geffen says this period of minor financial relief, coupled with a sense of cautious optimism, is why the industry anticipates the housing market will steadily gain ground in 2026.

"My belief is that improved affordability is slowly rebuilding buyer confidence, and we are already seeing a consistent uptick in serious enquiry levels. This should translate into a more active and stable property landscape in the new year.

"Let this small gift be the foundation for a far more stable and prosperous 2026. A little discipline now will secure a future where your most valuable asset—your home—works much harder for you."