The 23-year-old graduate of the European Challenge Tour in 2009 produced a bogey-free second round at the Diamond Country Club which took him to 8 under after a first-day 69.
Parry has not held the lead on the European Tour since February, when he shot two straight 67s at the Avantha Masters in India, only to finish in 26th place.
Parry is 117th on the money list and a top-ten finish on Sunday will earn him his 2011 tour card.
“I hit 17 greens in regulation,” Parry said. “And hit the ball really solid. And if I can keep it going like that I should be there or there abouts on Sunday night.”
The chasing pack includes European Ryder Cup player Graeme McDowell, who shot a 68 for a share of second place alongside Sweden’s Pelle Edberg and Jose Manuel Lara of Spain.
McDowell, who returned to competition after five weeks off following his victory at the US Open, opened the tournament with a 69.
“The rust has gone. It took me approximately eight holes on the first day to shake it off,” McDowell said. “But today I was more solid and it's nice to be in contention again going into the weekend.
“And it really feels nice to be in contention going into the weekend. I have come back refreshed and I fell a lot better this week.”
Miguel Angel Jimenez, the other Ryder Cup player in the field, moved to 3-under after a 68.
Goerge Coetzee, who held a one-shot lead after his first-round 65, had threatened to break away from the field.
A run of four straight birdies from 7th took him three clear of his nearest rivals before the 24-year-old Pretoria native encountered a rough patch.
A double bogey at the 12 reined him back before a quadruple 8 at the 16th, where he found water twice, saw him plummet down the leaderboard.
After a visit to another lake in front of the 17th green Coetzee shot a four-over 76 leaving him at 3-under and five shots behind the leader.
