Finance minister Pravin Gordhan today revealed in the highly anticipated National Budget Speech 2017 that properties under R900 000 will not attract transfer duty tax. According to Harry Nicolaides, Century 21 CEO, this is positive news for first-time homebuyers and the affordable housing segment
“We welcome the increase in the exempt threshold for transfer duty from R750 000 to R900 000, especially as first-time homebuyers make up the bulk of the property sales market,” says Nicolaides. He adds that South Africa could experience an increase in property sales in this bracket, following today’s announcement.
“It could serve as a catalyst for consumers who wish to sell their property below R900 000 who then go on to buy more expensive properties.
“Despite the constrained economic outlook and the message by the Minister of fiscal prudence, the South African property market outlook for 2017 is cautiously optimistic, with steady or stable house price growth, relatively low interest rates, favourable inflation outlook and careful confidence by lenders. The relaxation in the transfer duty rates will therefore act as further stimulus for the property market,” concludes Nicolaides.