All comments below by Dr Andrew Golding, chief executive of the Pam Golding Property group
Buoyed by commodity windfalls and stronger-than-expected tax revenue collection - coupled with tighter spending controls and improved investor sentiment - today’s MTBPS (Medium Term Budget Policy Statement), delivered by the Minister of Finance, struck an overall positive tone. However, the February 2026 Budget will serve as the true litmus test of South Africa’s fiscal resolve.
Encouragingly, with revenue expected to outperform by an estimated R19.3 billion, South Africa may be able to avoid the previously signalled R20 billion tax increase in February 2026. This would certainly be very welcome news for household finances and, by extension, the housing market -enhancing affordability, particularly for first-time home buyers.
The announcement of a new inflation target of 3%, with a 1% tolerance band to be phased in over the next two years, was widely anticipated. It is hoped this will support a sustained period of lower interest rates in the medium to longer term, providing further stimulus for aspiring homeowners as well as those seeking to relocate in line with evolving lifestyle needs.
The renewed emphasis on public-private partnerships to drive infrastructure improvements, notably in energy, water, and transport, is also encouraging and could help place South Africa on a more stable and sustainable growth trajectory.
Against this backdrop, with two further 25bps repo rate cuts anticipated by mid-2026, in an already rebounding residential property market, the outlook for the economy - and spin-offs for the housing sector - appears increasingly positive, with improved consumer and buyer confidence, and renewed activity expected to support steady growth across key segments of the market.
All comments above by Dr Andrew Golding, chief executive of the Pam Golding Property group
