Everyone is talking about the new tax measures that will bring inflation-linked tax relief to households under cost-of-living pressure. Other highlights include the withdrawal of the R20-billion tax increase, small business support by increasing VAT registration threshold from R1 million to R2.3 million, significant investment in energy, water, sanitation, and logistics projects, and larger allocations to security forces.
Agency heads give their perspective:
Stephan Potgieter, CEO of BetterHome Group Mortgage Origination and BetterBond:
“Homeowners will welcome the decision to withdraw the R20 billion in tax increases provisionally included in the May 2025 Budget. This, together with the full adjustment of income tax brackets and rebates in line with inflation, will provide households with more disposable income, supporting affordability and making homeownership more attainable. Although an above-inflation adjustment to address the “bracket creep” of the past two years would have been preferable, the announced adjustment is a move in the right direction. There was also no adjustment of the transfer threshold, which increased to R1.21 million last year.
Good news is that the tax-free thresholds for various transactions have been adjusted. The threshold for paying capital gains when selling your primary home has increased from R2 million to R3 million. The Minister also highlighted the importance of spatial and housing reforms aimed at improving access to housing opportunities closer to centres of economic activity. While further detail is needed on implementation, progress in this area would meaningfully support sustainable urban development and long-term housing market growth.”
Dr Andrew Golding, chief executive of the Pam Golding Property group:
“The 2026 Budget strikes an appropriate balance, placing strong emphasis on a fiscal strategy that promotes inclusive growth, macroeconomic stability, and the long-term sustainability of public finances.
It also delivers meaningful tax relief to consumers at a time of sustained cost pressures. Adjustments to personal income tax brackets, and rebates to counter bracket creep, together with higher tax-free savings and retirement contribution thresholds, will help protect disposable income and encourage greater long-term financial resilience.
For the residential property market, any improvement in household cash flow is significant. Increased disposable income enhances affordability, supports buyer confidence and strengthens the ability of first-time purchasers to enter the market. In an environment where interest rate stability and competitive lending conditions are already underpinning activity, these measures provide an additional tailwind.
Ultimately, the housing sector is likely to be influenced more by macroeconomic stability and municipal performance than by direct fiscal intervention, with selective growth in municipalities demonstrating measurable improvements in service delivery.”
Berry Everitt, CEO of the Chas Everitt International property group:
“By reducing the amount of tax payable, these measures will leave more money in the pockets of consumers and small business owners and enable them, among other things, to save for a deposit on a new home, qualify for a mortgage, or make improvements to their existing homes.
Small businesses should also be able to grow faster and create more employment, which will ultimately also position households to enter the property market for the first time, upgrade to homes as they grow, or invest in additional properties.
In short the real estate sector stands to benefit significantly from this Budget as it adds impetus to the growth in housing demand that is already being experienced in most parts of the country. The sector will also see an increase in new developments and the creation of new jobs in construction and other supporting industries. What is more, greater investment or buy-to-let purchasing on the strength of this Budget will expand the availability of rental stock, providing greater choice for tenants and supporting the broader housing market.”
Samuel Seeff, chairman of the Seeff Property Group:
“That the country’s finances and debt are stabilising, and Treasury is working towards reducing the debt and monthly interest payments that drain the fiscus and detract from service delivery, is welcome news. The higher economic growth outlook of 1.6% (from 1.4% in 2025) is, however, still too low for any meaningful growth and vital job creation. Fiscal relief and reforms must remain a priority.
That there is no VAT increase for consumers while lifting the VAT registration threshold to R2.3 million is good news for small businesses, as is the vital R1 trillion infrastructure investment, focus on public service reforms, and Phase 2 of Operation Vulindlela which includes further reforms.
We also note the announcement of the lower inflation target of 3% (with a 1 percentage point tolerance band) aimed at bringing the interest rate down. The current rate of 6.75% (prime at 10.25%) remains too high given the significant improvement in inflation and the value of the Rand. If these indicators remain stable, there is no reason to keep the rate so high. The property sector would like to see further rate cuts in March and May, which are vital both to enable more first-time buyers to get into their own homes and to unlock more spending in the economy.”
Fritz Swanepoel, CEO of Leapfrog Property Group:
“Economic growth remains the single most important catalyst for homeownership. We welcome the continued emphasis on fiscal consolidation and the stabilisation of South Africa’s debt-to-GDP trajectory. These are essential precursors to sustained interest rate relief.
With the repo rate currently at 6.75%, the market is positioned for a gradual easing cycle that could materially improve affordability and unlock pent-up demand - particularly in the R900,000 to R2 million price bands where transactional activity is most sensitive to rate movement.
While no adjustments to transfer duty were introduced, any future review of thresholds would meaningfully stimulate first-time buyer activity and liquidity in the lower and middle segments of the market.
A thriving property market operates in a virtuous cycle: political stability supports investor confidence; confidence lowers borrowing costs; lower borrowing costs expand access to homeownership. That cycle is within reach - but delivery now matters more than direction.”
Yael Geffen, CEO of Lew Geffen Sotheby's International Realty:
“This wasn’t just a Budget; it was an acknowledgment that the engine of this country is its people and its businesses. Minister Godongwana effectively said, ‘We see you, and we are going to stop making it harder.’ By adjusting brackets for inflation, he has put money back into the pockets of households at a time when they need it most. The Minister also took direct aim at South Africa’s low savings rate. To encourage citizens to build generational wealth, the annual investment limit for tax-free savings accounts was raised from R36,000 to R46,000. Furthermore, the deduction limit for retirement fund contributions was increased from R350,000 to R430,000, allowing individuals to shelter more of their income for the future. These are smart, targeted moves. Encouraging people to save – and to save more – is exactly how you build a resilient economy. It’s a vote of confidence in our collective future.
Stephen Whitcombe, MD of FIRZT Realty:
“The Minister spent a good part of his Budget Speech outlining what is being done to address the dismal state of many municipal water, electricity and road networks and the longstanding challenges in local service delivery.
This year R86,9 billion will go to support the provision of free basic services to just over 11 million households and the rest mostly towards upgrading essential infrastructure and supporting the reliable provision of basic services. We also welcome key reforms to ensure that local governments ring-fence the revenue collected from the provision of basic services and spend it only on the infrastructure needed to provide those services.
If swiftly implemented, the reforms will likely to have a very positive effect on the property sector within a relatively short time. As local infrastructure becomes more reliable and service delivery standards rise, we expect to see strong demand from property buyers and investors who have been waiting for evidence of change on the ground. Improved amenities typically also drive higher property values and often act as a catalyst for further investment and development, benefiting both local economies and the national growth outlook.”
