What SA's property industry leaders say about Budget 2019

26 Feb 2019

‘No quick fix for SA’s Budget, but there’s some hope,’ says Dr Andrew Golding, chief executive of the Pam Golding Property group

“From a housing perspective, while the land expropriation issue is yet to be finalised and clarified, funding for the upgrading of informal settlements and the Our Help to Buy subsidy, a pilot project with R950 million over three years to help first-time home buyers acquire a home, are welcome news. Also noteworthy is the support for private sector investment in agriculture via support for emerging farmers.

“The Finance Minister also noted that there is a need to respond to rapid urbanisation by shifting from ‘horizontal’ development to vertical or ‘going up’, as part of an integrated development plan. This would suggest that government incentives may reinforce the shift towards the construction of more sectional title homes – a trend already evident in many of the country’s major metro housing markets.

“Overall, the Budget was more or less as expected; what we need now is to see South Africa embarking on a recovery path which will promote confidence and investment, which will have spin-offs for the economy and the housing market across all sectors.

“We would certainly have liked to see a reduction in the transfer duty which would have served to stimulate property transactions across the board – with the potential to increase volumes and thereby revenue generation for government. And we also hoped for budget policies and incentives to promote eco-friendly building incentives and budget incentives to enable quick and cost-effective building solutions to stimulate the lower end of the market.”

'Whether you’re planning to buy or sell property in 2019, it won’t be more expensive,' says Mike Greeff, CEO of Greeff Christies International Real Estate
“On a much more welcome note, the decision by Treasury to create a special grant for first-time homeowners through its Our Help to Buy fund is sure to boost the South African property market and work in favour for all those looking to buy with a figure of R950 million set aside for the first three years.

“The property industry can expect to see significant growth as first-time homeowners will take full advantage of the grant.”