Property market | Interest rates hamper bond approvals

JOHANNESBURG - As expected, the interest rate hike cycle is hitting the residential property market.

Bond approvals have been dipping since the central bank began hiking the repo rate.

This is according to the BetterBond Property Brief.

READ: Reserve Bank hikes repo rate by 50 basis points

Economist Roelof Botha contributed to the report.

He says the Reserve Bank's cautious approach has seen the cost of credit surge since 2021.

"The total value of outstanding mortgage loans today in South Africa is lower in real terms than it was ten years ago," Botha said.

"This economy has never been able to grow at sustained rates unless private sector credit is growing, that is not happening."