When the Moneyweb podcast “Market Talk” aired on 20 August 2026, three seasoned voices, Nick Kunze of Sanlam Private Wealth, Vernon Sinden of Investec and Richard Henwood of Merchant West Investments, warned that the South African property market is shedding its recent luster. The guests said investors are increasingly pulling money out of property assets, a trend that could ripple through developers, real-estate investment trusts (REITs, pooled property funds that trade like stocks) and anyone with a mortgage or a property-linked investment.
Kunze, speaking on behalf of Sanlam Private Wealth, noted that the market’s recent rally has attracted a wave of opportunistic buyers. “Now we see a correction as those investors lock in gains,” he said. The comment reflects a classic profit-taking cycle: after a period of price growth, investors sell to realise returns, which can depress prices further.
Siden, an economist at Investec, linked the shift to broader macro-economic factors. He pointed to the upcoming second-quarter GDP figures, expected to show a slowdown, and the lingering impact of the Middle East conflict on global risk sentiment. “When growth slows and uncertainty rises, property becomes a less attractive safe haven,” he explained. The term GDP (gross domestic product, the total value of goods and services produced) is a key barometer for investor confidence; a weaker reading often translates into tighter credit and lower demand for commercial and residential space.
What the numbers say about REITs
Henwood, who tracks South African REITs for Merchant West Investments, said the August performance of the sector was mixed. While some REITs managed to hold their dividend yields, others saw share prices dip as investors re-balanced portfolios. He did not provide exact percentages, but his assessment aligns with the broader narrative of profit-taking and a cautious market mood.
For small business owners and entrepreneurs, the shift matters because REITs are a common source of financing for retail, office and industrial space. A dip in REIT valuations can tighten the supply of capital for new developments, potentially delaying expansion plans for SMEs that rely on modern premises.
In addition, the podcast touched on the reopening of the Suez Canal, a critical trade route for South Africa’s export-driven economy. Sinden argued that smoother shipping lanes could boost trade volumes, but any upside would be muted if domestic property demand remains weak. The logic is simple: stronger export activity can raise corporate profits, but if companies cannot find suitable local premises, the benefit does not fully translate into economic growth.
These observations sit against a backdrop of high interest rates, which have been a persistent drag on the property market. Borrowing costs directly affect mortgage affordability and the cost of financing for developers. When rates rise, fewer buyers can qualify for loans, and developers may postpone projects, further curbing demand.
What does this mean for the average South African property investor? First, the market is likely to see more price volatility in the coming months. Second, dividend-paying REITs may become more attractive as a defensive play, provided they maintain stable cash flows. Finally, anyone considering a new property purchase should factor in the possibility of lower price appreciation than in the previous year.
While the podcast did not present hard data, the experts’ consensus, that profit-taking is underway and that macro-economic headwinds are weighing on sentiment, offers a useful guide for decision-makers. Investors and business owners alike should monitor the upcoming GDP release and interest-rate announcements, as these will shape the next phase of the property cycle.
Why profit-taking in property tends to be self-reinforcing
A correction driven by investors locking in gains after a rally has a mechanical quality that makes it different from a downturn driven by a genuine change in property fundamentals: once enough early sellers realise their profits and exit, the resulting supply of stock for sale can itself push prices down further, drawing in a second wave of sellers who are reacting to falling prices rather than to any new information about the underlying assets. That dynamic is part of why the panel frames the current moment as a correction rather than a structural downturn, the initial trigger, profit-taking after a rally, is a normal and self-limiting market mechanism, but its short-term effect on prices can look identical to the early stages of a more serious downturn until the macro data, GDP growth, interest rates, actually confirms which one is underway.
