The South African Reserve Bank has decided to leave interest rates unchanged, but even if they were to experience a modest change - either up or down, property prices are still expected to continue rising in value this year, but at a slower pace, compared to the past few years. Only last year, average property prices rose by 32%.

Jacques du Toit, the senior economist at Absa, says. "While a sharp downward correction is not likely. The month-on-month growth in house prices has been declining since January last year," he says.

While Sail Geffen, the managing director of Mortgage SA believes property prices will increase by a more sustainable 15% during 2005. According to Geffen, factors other than interest rates are underpinning the property market, he says. These factors include innovative home loan packages, sound economic fundamentals and the demand for property by the emerging black middle class.