Seeff said the prevailing remarkably low inflation level indicated that demand-side pressures are relatively subdued and the risks of igniting an inflationary spiral through a rate cut are minimal at this stage.

He said the stability of the currency provides further mitigation, thus providing a valuable window for the SARB to implement a more accommodative monetary policy stance that directly benefits the domestic economy.

According to data analysed by Lightstone, which evaluated property bought by a natural person and where the transaction was for a single property, young homeowners are entering the market later than they did in the past, and are opting for bonded, secure living.

In 2024, people aged between 20-35 (youth) accounted for 30% of residential property purchases, down from 36% in 2019 and 41% in 2014, with tough economic conditions and changing lifestyles cited as the likely reasons behind the shift.

While youth accounted for 30% (52 500) of residential property transactions in 2024, it was the second largest group behind the Settled category (36-50) at 43% (76 000). The Mature category (51-64) (38 000) accounted for 21%, while the Pension category (65 and older) accounted for 6% (10 000).

While the recent rate cuts have provided some relief, Seeff said the benefits have now been eroded by keeping the interest rate at least 100 basis points above the pre-Covid rate. He said time is ticking and the country simply can no longer wait.

Seeff said there is now a golden opportunity for the bank to act boldly within the available monetary policy space to address the urgent needs of economic recovery and expansion without jeopardising its price stability mandate.

A rate cut would inject much-needed momentum into the economy by lowering borrowing costs for businesses and stimulating investment while adding more money into the pockets of consumers to spend in the economy, he said.

The property group said while a 25bps cut would be most welcome, they urged the Bank to provide a more robust cut of at least 50bps as an immediate injection of economic confidence to kickstart the economy.

“Naturally, the property market, which currently lags the pre-Covid volumes, will also benefit from a more pronounced rate cut. Aside from enabling more first-time property buyers to get into the market, it is an important economic contributor with a significant economic multiplier benefit,” Seeff said.

Independent Media Property

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Give us an interest rate cut, let’s stimulate the economy - property expert