This is something that both buyers and sellers have been waiting for. Despite ongoing economic pressures, the market has shown remarkable resilience, supported by consistent demand and a long-term investment mindset.
At O-YES Properties, we are seeing renewed confidence beginning to filter back into the market. After a period of higher borrowing costs, activity is slowly picking up and price growth is starting to level out. That said, affordability remains a key factor, with even small changes in interest rates continuing to influence buyer behaviour.
“Our market isn’t one-size-fits-all,” says David Williams, CEO of O-YES Properties. “First-time buyers and more price-sensitive segments feel interest rate changes almost immediately, while higher-end buyers tend to be less affected. That’s why we’re seeing recovery happen at different speeds across different price bands.”
Global pressures still shaping the local landscape
While holding interest rates steady offers short-term relief and predictability, it also reflects broader economic realities. Stability, in itself, plays an important role in restoring confidence.
“When buyers have certainty around repayments, even if rates haven’t dropped yet, it allows them to plan properly and move forward with more confidence,” Williams explains.
However, global factors such as rising fuel costs, geopolitical uncertainty, and currency volatility continue to keep inflation in check, limiting the likelihood of significant rate cuts in the immediate future. These global influences ultimately affect how banks assess lending risk, which in turn impacts what buyers qualify for and the rates they are offered.
Encouragingly, lending institutions are still active. Buyers with strong financial profiles, clean credit records, and manageable debt levels are continuing to secure competitive home loan terms, a positive sign for market stability.
Budget 2026: Small changes, meaningful impact
While interest rates dominate short-term sentiment, the 2026 Budget has introduced several adjustments that could support the property market over time.
One of the most notable changes is the increase in the primary residence capital gains tax (CGT) exclusion from R2 million to R3 million.
“This is a meaningful win for homeowners,” says Williams. “It allows sellers to retain more of their profit, which can make it easier to move, whether that’s upgrading, downsizing, or reinvesting.”
Rather than triggering an immediate surge in listings, this adjustment is expected to encourage more natural movement within the market, particularly in the mid-to upper-price ranges.
“It gives sellers flexibility,” Williams adds. “People can make decisions based on life changes rather than being driven purely by tax considerations.”
At the same time, the decision to leave transfer duty thresholds unchanged provides much-needed consistency.
“In an already tight affordability environment, knowing your upfront costs remain stable is incredibly valuable,” Williams notes. “It allows buyers to budget more effectively and make informed decisions.”
Additional measures, such as inflationary adjustments to personal income tax brackets, may offer slight financial relief to households, while maintaining the corporate tax rate at 27% supports a stable environment for investors and developers. The increased VAT threshold for small businesses is also expected to ease pressure on smaller operators within the broader property sector.
Looking ahead: Infrastructure as a growth driver
Over the longer term, government’s continued investment in infrastructure is expected to influence property trends.
“Infrastructure development plays a significant role in shaping property values,” says Williams. “Improved roads, transport links, and service delivery can unlock growth in certain areas, but these benefits take time and will differ from one location to another.”
Proposed municipal reforms, particularly those linking funding to service delivery performance, may also help rebuild confidence in struggling areas, although these changes are likely to be gradual.
At O-YES Properties, our view remains clear: while short-term pressures exist, the fundamentals of the South African property market remain strong. For buyers, sellers and investors alike, there is still opportunity, particularly for those who take a well-informed, long-term approach.
Contact us today: enquire@o-yes.co.za
