Economy

SA Corporate Real Estate, owner of industrial, retail, and residential properties in the major metropolitan areas of South Africa, lifted its distribution to 24.37 cents a share for the year to December 31, from 23.18 cents per share the year before. The distribution announcement and prospects for the new financial year saw the share price rise 3.19% to R2.91 on Friday. A year ago, the share traded...

The slight VAT increase announced by Finance Minister Enoch Godongwana when he tabled the 2025 Budget on Wednesday may raise the cost of purchasing properties, influencing buyers’ affordability. Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, said if affordability does become more of a concern, more people may opt to rent rather than buy, driving up rental demand and...

The financing side of the 2025 National Budget tabled by Finance Minister Enoch Godongwana on Wednesday proposing a 0.5% VAT increase and no changes for income tax brackets and medical aid tax credits is a big concern. Douw Boshoff, a Professor in Real Estate at the University of Pretoria(UP) said the reported 0.5% increase in VAT per year over the next two years, results in an approximate R15.00bn...

South African consumer confidence in the property market is at its highest in ten years, says the Absa Homeowner Sentiment Index. This means South Africans are currently more confident about the property market than they have been in the last decade. This could suggest that people are more optimistic about buying or investing in property. The index revealed that buyers are positive about...

South Africans are feeling bullish about their homes, with the overall homeowner sentiment index climbing to 87%, up 3% quarter on quarter, in the fourth quarter (Q4) of 2024 - the highest in a decade. The Absa Homeowner Sentiment Index (HSI) is compiled from a survey of over 1 200 income-earners from metros, cities, and towns, shows growth. Sentiment to buy rose to 77% from 73% in Q3 and has been...

The ever-present talk of imposing a wealth tax on South Africans as a source of revenue has resurfaced after the National Treasury’s plan to collect an additional R58 billion mainly from higher VAT in the 2025/26 financial year, was stopped in its tracks with the postponement of the National Budget. Business Day quoted “senior officials aligned to the ANC” within the Government of National...

The average house purchase price in South Africa has for the first time exceeded R1.6 million, a dramatic rise from R150 000 in 1994, says alternative home financier Sentinel Homes. The trend of escalating house prices will continue because it is currently more expensive to build new stock than to trade in old stock, says Renier Kriek, managing director at the...

The potential increase in VAT (value added tax) could reduce consumer spending, particularly on non-essential items, negatively impacting property owners with retail exposure as tenants might struggle.Ridwaan Loonat, a senior analyst for Property at Nedbank Corporate and Investment Banking, said VAT is charged on rental income from commercial properties if the landlord is VAT registered, but not on...

The South African government’s proposal to increase VAT from 15% to 17% has sparked concerns across various sectors, with experts warning of its potential impact on consumers and the property market. According to Antonie Goosen, principal and founder of Meridian Realty, the increase could significantly affect homebuyers, sellers, and investors. “A VAT increase means higher costs for essential goods...

The South African housing and property development sector is navigating a critical juncture, grappling with a stark shortage of registered Quantity Surveyors (QS). As demand for affordable housing surges, industry experts warn that this essential profession plays a pivotal role in delivering infrastructure efficiently and cost-effectively. However, the current lack of skilled professionals has led to...