The highly possible interest rate hike by the SARB before the end of the year could have significant impact on both the residential and non-residential property markets. It can be expected that inflation will continue on an upward trend for the remainder of the year with increases in food and administered prices: petrol, rates and taxes and electricity. 

The hike in interest rates will have a severe impact on the already slow-moving market which may cause further decline in house prices, ultimately having a negative impact on the residential market, in addition the increase in the interest rate will curb the recovery process for the residential market. On the other hand, non-residential property takes into account the possible interest rate hike and discounts the cost paid for the property accordingly; as interest rates increase one anticipates a decline in price.