Recent reports show that currently the South African property market is booming and that buyers are showing interest from all corners of the globe.
Finance Minister Enoch Godongwana delivered his maiden budget speech yesterday with few surprises. A R181 billion tax windfall, primarily as a result of a commodities boom, has helped to improve the state’s fiscal situation.
In the current economic environment, businesses are keen to reduce debt by paying down their commercial loans.
Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty, welcomed the government backtracking in this budget speech on its earlier decision to increase personal income tax, as well as providing a further R2.2 billion in tax relief through raising personal income tax brackets and rebates by 5%.
Relief at no increase in personal tax, says Dr Andrew Golding, chief executive of the Pam Golding Property group
Finance Minister Tito Mboweni’s budget has been received very positively, as demonstrated by the reaction from markets.
Real estate has long been a rewarding sector of the financial markets. Like all sectors, share prices and the underlying fundamentals of commercial property assets weakened in early 2020, as South Africa and the rest of the world came to grips with managing through the pandemic, with some sectors suffering more than others.
Cape Town’s new apartment and mixed-use property development The Harri is selling off the last of its 48 studios and lofts to South Africans wanting to put their tax liability to good use by investing in a Section 12J tax investment scheme.
The Property Industry Group has announced an industry-wide assistance and relief package for retail tenants that are hardest hit by complying with South Africa’s lockdown in the face of the COVID-19 pandemic.
Estienne de Klerk has been elected Chairman of the SA REIT Association, which represents the South African listed REIT (real estate investment trust) sector.
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