Property  commentators expressed disappointment at this, as there had been market expectations of a further increase.

Last year, Finance Minister Trevor Manuel removed transfer duty from transactions involving the sale of houses worth less than R500 000, as a response to the steep increase in house prices.

The year before last, there had been a more moderate increase in the exemption threshold from R150 000 to R190 000.

Samuel Seeff, chairman of real estate group Seeff Properties, said yesterday that "one would have hoped that together with the increase in prices, we would have seen a further raising of the price barrier in which properties could be transferred duty free".

Seeff said this would have assisted the country?s poorer people to acquire properties.

 Property  economist Francois Viruly also expressed disappointment on the transfer duty issue, saying more needed to be done to make it possible for people to enter the formal mortgaged housing market.

"We are going to have to be much bolder in future budgets in promoting home ownership," said Viruly.

Herschel Jawitz, CE of real estate group Jawitz Properties, said the neutrality was largely expected because of the significant relief offered in last year's budget.

However, Manuel said the national treasury was proposing that tax depreciation allowances for the economic wear and tear of newly constructed or upgraded  commercial  buildings be implemented.

SA's tax laws provide for the depreciation of buildings used in manufacturing, but not for  commercial  purposes. A 20-year write-off period is envisaged.

Evan Robins, head of fixed income at BoE, said this would encourage the building of new properties and that this would be positive for developers.