HEIBERG ESTATES NEWSLETTER: FEB 2026

Dear Property Partners

All-around positive news is continuing! Finance Minister Enoch Godongwana announced this week during the 2026 National Budget that after 17 years, our debt is now at last stabilizing. In general the Budget Speech is positive for our SA Property Market, referring to tax relief for consumers, adjustments to personal income tax brackets, medical tax credits, a higher tax-free investment limit and a higher retirement contributions threshold.. Together with increasing the VAT registration threshold for small businesses, it creates more disposable income and cash flow, which will further support buyers confidence to invest in property. Further good news referred to was that SA has been removed from the FATF Grey List, it secured its first credit rating upgrade in 16 years, and borrowing costs have eased, creating space for growth and development. The strength of our rand, which is being supported by structural reforms, tighter fiscal management, and high global metal prices (especially the gold price), is performing excellently against the US Dollar and foreign currencies, and our inflation rate is basically stable and fluctuating between 3.2% and 3.4%.

The next positive step expected is that the SA Reserve Bank will again start to lower our interest rates. Furthermore, there are talks all around that the SA Reserve Bank is indeed now seeking to replace the prime rate, which is the main reference commercial banks use to price trillions of rands of loans, with their interest rate that has been fixed at 350 basic points above the benchmark interest rate since 2001 – this in order to minimize risk and to ensure continuity. Private Public Partnership is gaining momentum and showing positive results in key economic sectors and visible in especially the electric- and logistic sectors, with ongoing improving performance noted over the past two years.

A week ago Standard Bank announced that it is forecasting three further 25-basis-point interest rate cuts this year, due to the fact that our country has been experiencing a positive and improving macroeconomic climate, as has been recorded over the past ten years. If indeed and as widely expected should be happening, it will bring further relief and also renewed investor trust in our economy as a whole, as well as our property market. A further cumulative .75 basis point cut in the repo- and interest rate this year, should stimulate consumer credit and bring forth greater affordability to invest in property.

On the economic growth side, it is forecasted that our GDP will grow by around 1.6% whilst the decision by the SARB to adopt a lower 3% inflation target, will help to anchor inflation expectations. However, the inflation rate is still expected to remain to be slightly higher than this target and predicted to be averaging around 3.4% for 2026. The combination of lower rates, our strong Rand exchange rate (although still a volatile currency) and bolstered by investors flooding into gold, easing inflation and renewed general economic confidence, is clearly benefitting our property market and resulting in many more property Buyers willing to put hand on paper and to invest in property.

We are observing increasing activity in the present, more balanced property market which creates opportunities for both Buyers as well as Sellers, especially where expectations on both sides are market-related and realistic. So many factors have lately improved South Africa’s terms of trade and are attracting foreign investment not only into local stocks and bonds, but also in our SA Property Market. But we are also well aware that our economy is often influenced by international events and geopolitical shocks. It needs to be challenged by improving local economic fundamentals and creating economic growth which in turn creates sustainable jobs and confidence, leading to affordability and stimulates interest to invest in properties.

Some of the latest interesting facts and statistics:

• With confidence in our Property Market visibly increasing, the latest ABSA Homeowners Sentiment Index reports that participants under the age of 44 recorded greater confidence at 89%, compared to the 81% recorded for those over the age of 55. Confidence among homeowners and prospective buyers aged between 45 and 54, was 85%.
• The above aligns with the SA Deeds Office Data that shows property buyers under he age of 44 contributed to half of all property purchases recorded during the last quarter of 2025. SA’s younger buyers demonstrate a sustained belief in the long-term value of property ownership, whilst their confidence is not only reflected in sentiment, but also in real activity.
• Overall homeowner sentiment was recorded at 87% last quarter, matching the highest level ever recorded by the ABSA Homeowners Sentiment Index. Confidence remains high and looking at the past 18 months, it fluctuated between 84% and 87% which reflects a consistent degree of optimism among homeowners.
• Focusing on our Commercial Property Market, over all 2025 was stronger than 2024, and there are positive signs that 2026 should show mild strengthening. FNB reports top of the list industrial properties still selling the fastest, followed by retail and offices. Average time on the market before being sold has also declined, which is a positive sign whilst retail and industrial properties are at a very near balance between demand and supply on a national basis.
• The average time an industrial property was on the market before being sold, was 16.62 weeks, versus the 20.62 weeks for retail and 24.15 weeks for office property recorded.
• A nationwide decline in commercial property vacancies has been recorded which will bring welcoming relief to property owners and investors, also to note the growing trend of the conversion of older office properties to residential and mixed-use properties and where there is ongoing interest and demand. The previous quarter an estimated 21.7% of total national office sales, were with the intent to be converted into residential or mixed-use space and just in the Great Johannesburg areas, this repurposing was an estimated 41%.
• BetterBond reports that residential property prices increased year-on-year by 3.3%, pointing to increasing buyer sentiment to invest in residential property.

We are happy to report back to you that we are seeing a continued healthy and vibrant SA Property Market, which is expected to keep on track for the remainder of this year and with increasing buyer’s and investor’s sentiment, characterised by long-term strategies versus short-term trends and focus placed on well-located property types, functional infrastructure, and good governance that offer real value and security. It is heartwarming to see the positive trend that started in the last quarter of last year continuing, especially with growing confidence and sentiment amongst specifically those property investors, whom adopted a wait-and-see attitude for the past few years. FNB also predicts that the moderate strengthening in economic growth, along with expected further interest rate cuts just to name a few, should sustain near-term strengthening in investor demand for commercial properties this year.

Although price sensitivity and affordability constraints in all property segments remain, the gap between realistically priced properties and overpriced properties is widening where these days, buyers are well-informed and have access to all data, trends, and statistics. More than ever, property investors buy by comparison to unlock optimum value for their property investments. Therefore, making use of well-seasoned and professional Agents that can advise Sellers what a market-related selling price is in taking all relevant factors into account by not only using data that anybody can obtain from the internet, but bring decades of specialist, hands-on experience to the table, is of utmost importance and invaluable.

Your Heiberg Estates Team with more than 50 years of collective experience, is awaiting your calls with great expectancy and we are all ready to offer our in-depth SA Property Market expertise and wide range of property experience to you!

Whether you are a Buyer, Seller or Tenant – we are there for you 24/7. PLEASE DON’T HESITATE TO CALL US ANYTIME!

Yours sincerely

Bambie & Heiberg Estates Team