The 2026 Budget, presented by Finance Minister on the 25th of February, has brought welcome news in terms of stability and relief which will benefit consumers and the property market, says Samuel Seeff, chairman of the Seeff Property Group.
The reassurance that the national finances and debt are stabilising, and Treasury working towards reducing the debt and monthly interest payments is also welcome news. This fiscal discipline, and much-improved economic indicators, including the revised GDP growth to 1.6% (from 1.4% in 2025), low inflation and strengthened Rand, sets a solid foundation for the year ahead.
For consumers, there disposable income relief. The planned R20 billion tax hike is withdrawn, and there are no VAT hikes. Personal income tax brackets are adjusted for inflation, providing R13.7 billion in tax relief. Medical tax credits are increased to R376 per month for the first two members.
To encourage more savings, the tax-free savings account limits are increased to R46,000 and retirement deductions to R430,000. Social grant increases will also support vital national stability.
For the property market in particular, the increased exclusion limit from Capital Gains Tax (CGT) on the sale of a primary residence to R3 million (from R2 million set in 2012) is good news.
There is also for small and micro businesses aimed at boosting growth, and further Capital Gains Tax (CGT) relief. Notably, the VAT registration threshold has more than doubled to R2.3 million (from R1 million), which greatly reduces the administrative burden for small businesses, developers, and landlords.
The Turnover Tax exemption threshold for micro businesses is also increased to R600,000 (from R335,000).
The CGT exclusion for the disposal of small business assets increased to R15 million (from R10 million), and for individuals over the age of 55-years to R2.7 million (from R1.8 million). The CGT exclusion on the event of death also increased to R440,000 (from R300,000), and for individuals, it increased to R50,000 (from R40,000).
Additional measures centre around municipal and housing reforms, and the significant R1 trillion infrastructure investment planned over the medium term. Aside from the vital stimulus to the construction, logistics, and related sectors, these measures will also support property values.
The Budget introduced very little strain, and mostly relief for consumers and small businesses. These, combined with the new 3% inflation target and potential for further interest rate cuts will further support the market and bring down borrowing costs while boosting demand, especially in the entry-level market.
We continue seeing the property market in a positive, recovery phase, presenting opportunities buyers, sellers, and investors. Mortgage finance conditions remain favourable, including rate concessions and lower deposit requirements (down to around 12.8%) with over half of ooba Home Loans clients recently securing 100% bonds. Buyers are upgrading with the overall value of mortgage loans up by about 17%.
