Post MPC rate increase comment from Herschel Jawitz, CEO Jawitz Properties.

28 May 2026: Herschel Jawitz, CEO Jawitz Properties, says the increase in rates will come as an unwelcome surprise to consumers especially given what expectations were at the beginning of 2026.

WORDS & PHOTO: SUPPLIED

With inflation holding at the new Reserve Bank target of three percent, the expectation was at least two rate cuts this year of 0.25% each which would have taken the prime lending rate to 10.5%.

Now consumers are faced with high fuel costs and higher interest rates within the space of three months.

Despite the ‘cost shock’, the impact on the residential market is expected to be marginal. Sentiment in the residential property market among buyers, sellers and investors remains firm and property price growth according to the latest stats from FNB is at 5.7% which is the highest year-on-year growth rate since 2021 when interest rates were at record lows post-Covid.

Demand for property across the country exceeds supply and even with the rate increase, the market is expected to hold at current levels.

Much will depend on how long the current high fuel prices and increased rates will last. The longer they last, the greater the impact on the residential market.