South Africa's property market is splitting into two distinct segments ahead of the upcoming interest rate decision, according to industry experts.

The mainstream residential market, which is most affected by affordability and borrowing constraints, faces heightened pressure from rising interest rates.High-net-worth buyers, however, remain undeterred by minor rate changes, focusing instead on asset quality and rarity.

Keegan Steyn of Forbes Global Properties notes that while affordability issues persist in the broader market, ultra-prime buyers prioritize scarcity and exceptional properties over credit availability.Ezra Rasethe of investRand highlights that while higher borrowing costs may delay some purchases, demand for affordable housing remains intact.Buyers are adjusting expectations by considering smaller properties and more accessible locations.

The Monetary Policy Committee faces the challenge of balancing inflation control with economic stability, with concerns about further rate hikes exacerbating affordability pressures.The market's divergence underscores the complex interplay between economic policy and real estate dynamics in South Africa.