South Africa is facing structural economic growth challenges through low growth, higher cost of living and unemployment..Photograph :Phando Jikelo/African News Agency(ANA)
While there is no perfect budget, a property marketing expert is hoping for a balanced one to boost the property sector.
Responding to an Independent Media Property enquiry, before the Finance Minister Enoch Godongwana budget speech was postponed on Wednesday, Stefan Botha, who is also the Director at Rainmaker Marketing said this would involve the speech addressing economic growth which starts by stabilising debt to GDP ratio, investment into infrastructure and the recovery plan for Transnet with regards to the country’s freight and ports.
“Consumer affordability is a large driver of the property sector which means that any tax relief for individuals or business owners will stimulate the market further.
“We will be holding thumbs that value added tax (VAT), personal tax and corporate tax remain unchanged despite tax collecting revenue being poor in the last 12 months.
“We also expect a significant focus on renewable energy which is important for all facets of our economy,” Botha said.
The property marketing expert said there is no denying that South Africa is facing structural economic growth challenges through low growth, higher cost of living and unemployment. Botha said all this impacts the property sector.
“Having said that, we have seen significant green shots in the property sector boosted by decreasing interest rates and the direct impact it has on sentiment and affordability within the property space.
“This combined with the Government of National Unity (GNU), and Eskom stability, has sparked confidence in our economy and subsequent momentum within the market and we anticipate further interest rate decreases during the year. Many of our clients have seen really good sales momentum so far in 2025 and we are optimistic that the content of the budget speech will further stimulate that.”
Toni Anderson, the head for Home Services at Standard Bank South Africa said a sense of increased political and economic certainty for the country, optimism and positive sentiment around this would be expected to positively influence the residential property market, and encourage higher sales volumes and values compared to the previous two years.
He said the anticipated stability/ reductions in repo rate would also bring about positive sentiment and growth in the property market.
“An outlook of rising interest rates could negatively impact property sales, but they might also further encourage the rental market and increase demand in the buy-to-let market,” Anderson said.
The financier said budget decisions around and investment in infrastructure issues and load shedding will be crucial in terms of outlook and investment in the property market as well as its stability.
It added that any increases in taxes or hikes in property taxes, like Transfer Duty and Capital Gains tax would also play a negative role in consumer affordability and appetite to play actively in the market.
“An increase in the transfer duty exemption from R1.1m would benefit affordability for First Time Home Buyers.
On the other hand, Anderson said any improvement in the Government Subsidy (First Home Finance) for First Time Home Buyers would benefit customers applying for Home Loans or approval as to retrospective allocation of First Home Finance will increase customer liquidity and assist those in distress.
Minister Godongwana will now deliver his budget speech on March 12.
Independent Media Property