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2 hrs agoRising global crude prices are beginning to squeeze more than just wallets at the petrol pump — they’re threatening to reshape South Africa’s fragile housing recovery by squeezing affordability and slowing market activity. According to a new report by a University of South Africa economist, climbing oil costs ripple through the economy, lifting transport and production expenses and fuelling inflationary pressures that central banks can’t ignore.
Higher fuel prices often lead to sustained inflation, which in turn can force the South African Reserve Bank to maintain elevated interest rates for longer. And for homebuyers, even modest rate increases translate directly into larger monthly mortgage repayments and reduced borrowing power.
But the impact doesn’t stop with buyers. Builders and developers also feel the pinch — diesel‑powered machinery and fuel‑dependent logistics become costlier, driving up the price of construction materials and potentially delaying new housing projects.
As commuting costs climb, demand may shift toward properties closer to work and transit, reshaping urban preferences and stretching affordability for many households unless global oil prices retreat.