Budget positive for housing, say industry players

Players in the housing and property industry have hailed Finance Minister Pravin Gordhan's Budget as positive for the property industry.

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Dr Andrew Golding, CE of the Pam Golding Property Group, said the investment in major infrastructural projects and human settlements, and proposed tax relief for housing developers and employers who provide housing below R300,000 a unit, is welcome news.

"Coupled with the recent announcement of a national housing subsidy, which is to assist those earning between R3,500 and R15,000 a month to obtain a subsidy of up to R83,000 to enable them to obtain housing finance, there needs to be a sustained focus on incentivising and providing much-needed housing for the lower income earners in SA. The mention in the Budget of consideration to be given to a mortgage support facility is also encouraging news," he said.

This sentiment was echoed by Lew Geffen, chairman of Sotheby's International Realty in SA, who said of immediate benefit will be the new housing subsidy scheme to be implemented through the provincial administrations.

"This will give the lower end of the market much needed impetus and no doubt have positive knock-on effects," said Geffen.

"Today's Budget holds out excellent prospects for the speedy improvement of the real estate market and the sustainability of that recovery," said Geffen.

Golding added that the new Cities Support Programme, focused on improved spatial planning, public transport systems and management of infrastructure utilities in eight metropolitan authorities, is also good news, as is the attention given to reducing the economic impact on road users of the toll road system in Gauteng.

"There were few surprises in this year's Budget, however, we would have hoped that attention would have been given to further reducing transfer duty payable by home buyers, in order to help encourage home ownership - which in itself helps provide future financial security for home owners," said Golding.

He added that the housing market remains under pressure and while interest rates remain historically low a recovery in the market is expected to remain relatively muted for the remainder of this year.

"However it is true that there is improved sentiment generally evident in the market, and this includes developers who are demonstrating increased confidence in the residential property market," said Golding.