The 2026 Budget boosts property market confidence as sentiment shifts toward growth

Personal tax relief is designed to prevent individuals from paying higher taxes solely due to inflation-linked salary increases. This measure can enhance bond affordability and assist in covering escalating monthly expenses, such as rates, levies and maintenance costs. Although property takes longer than shares to react to the budget speech, improved sentiment allows confidence to filter through.

Finance Minister Enoch Godongwana delivered the2026 Budget Speechon Wednesday, February 25, where he announced reforms in local government, including shifting to a performance-linked utility model for water and electricity services. He said this is aimed at strengthening financial sustainability, accountability and transparency. “Spatial and housing reforms focus on restructuring our cities to ensure that people have access to affordable housing located close to centres of economic activity.” In that environment, banks often become more willing to lend, and buyers become more willing to transact, says Eva August, CEO at Century 21.

“The good news is there is no major new tax shock. This is a better confidence for the property. It is helpful forbuyersas inflation tax relief supports affordability at the margins.” She says that something to watch out for is that fuel increases can push up building and living costs.