The recent 0.5% interest rate hike in South Africa is unlikely to have a huge effect on the countrys commercial property market.

Property pundits say the market was expecting the hike and that it had been priced in. But future hikes may have a detrimental effect on prices.

David Green, MD of office and industrial property brokers Pace Property Group, said: "We would anticipate that initial yields on which properties are valued would rise, which implies that property values decline. To some extent the increase in interest rates was anticipated and therefore the property values are currently indicative of interest rate increases, so we dont anticipate that the last interest rate will negatively affect property prices."

South African interest rates currently now stand at 8.5%.