The property market has kicked off the year on a steady footing with the overall economic and market outlook for 2026 remaining upbeat. Despite emerging risks to the oil price due to the Middle East war, we are still seeing a lower inflation and lower interest rates compared to the challenges of prior years.
The Finance Minister also recently set the tone for a positive year ahead, indicating that debt and the economy had stabilised, and the focus is now on growth, tax relief, and infrastructure investment.
Budget 2026 Tax Relief and Interest Rate Shifts
This year’s Budget represented a strategic shift towards tax relief, infrastructure investment, and municipal reforms. The inflation-adjusted tax brackets and medical credits along with scrapping the planned VAT hike represent more money in the pockets of consumers and potential home buyers.
The budget also introduced a significant boost for sellers with the increase of the Capital Gains Tax (CGT) exclusion on a primary residence to R3 million (from the previous R2 million) which enables sellers to retain more of their profit when selling their primary home.
Government further signalled its commitment to infrastructure investment, especially for struggling metros to deal with maintenance issues. A successful outcome here would be hugely beneficial for property demand and property values, and will ultimately ease the upward pressure on utility costs.
A New Look at Interest Rates
On the lending front, the Finance Minister formally announced a new, lower inflation target of 3% (with a 1% leeway), as a strategy specifically aimed at driving interest rates down over the long term. The outlook of a lower interest rate is another hugely positive move for the property industry as the interest rate is arguably the single biggest driver of demand, which in turn drives faster sales and higher prices for sellers.
A further important development is the proposed consolidation into a single interest rate benchmark by scrapping the prime interest rate, formally announced by the minister. Since this has caused some confusion for many property buyers and the market, the Reserve Bank has proposed a formal structural change to lending benchmarks and will replace the traditional “prime” interest rate with a new SARB Policy Rate (Repo Rate) as the single benchmark for lending.
New Regulations for Short-Term and Airbnb Rentals
The short-term/Airbnb rental sector has come under some scrutiny, driven primarily by a lack of affordable residential rentals in the high demand urban areas. This has led to a call for more regulation and oversight.
The effect of this is that municipalities may well start looking at regulating this sector. Cape Town is for example already working on a proposed new by-law aimed at regulating those short-term rentals which are used primarily as a rentals business. These will then likely be subject to commercial property rates at a cost which is more than double those of residential property.
Additionally, the Department of Tourism gazetted the STR Draft Code (Code of Good Practice for Short-Term Rentals) on the 13th of March 2026. The code is open for comment and objections until the 12th of May 2026. The interim framework requires hosts to act in good faith by informing guests of municipal bylaws and body corporate rules (specifically regarding noise, parking and so on). It also mandates that online platforms provide guest identity data to hosts to enhance security.
While these measures aim to professionalise the industry, it also represents a move to greater oversight which will likely introduce added administration and compliance costs for property owners.
Market Outlook and the Plettenberg Bay Advantage
High-demand property markets continue seeing sustained demand, especially coastal areas and those areas which benefit from semigration such as the Garden Route. Plettenberg Bay remains a standout performer, having achieved another outstanding year in 2025.
Plettenberg Bay benefits from the ideal location, lifestyle, and quality of properties. There is a wide choice of properties and price points on offer, including for those looking for premium luxury coastal homes. All of this combined offers the perfect proposition for potential buyers and investors.
Seeff is passionate and proud to be a flagship real estate brand, serving our local communities and driving the property market forward to the benefit of all who invest here.
We are also delighted to share that Seeff Plettenberg Bay’s agents again emerged as top Achievement Award Winners at the recent Seeff Annual Agent Achievement Awards. We achieved a phenomenal 24 Awards, ranking Seeff Plettenberg Bay among the most awarded in the country.
These include Chairman’s Awards for Alet Ollemans (licensee) and Daniel van Renen. A number of agents also received Achievement Awards in various sales categories, being Alet Ollemans, Daniel van Renen (5 awards), Piet Maree, Susan Duncan, Helen Moulster, Connie Peet, Carol Zoutendyk, John Carpenter, and Helene Gardner.
Long Service Awards (15-years) were awarded to Dirk Green, Judie Brugman, Chantele Kretschmann and. Other award winners include Sasha Lee Coetzee (Administrator of the Year), Kelly Bloom (Rentals Rookie of the Year), and Carin Botha (Newcomer of the Year, Sales).
This recognition assures our clients that they are dealing with an experienced and excellence-driven team. Whether you are looking for a no-obligation assessment of your home's current value or would like to discuss your next property move, contact Seeff Plettenberg Bay today, or pop into our office on Main Street.
Agent Achievement Award Winners
Piet Maree and Susan Duncan and Alet Ollemans:
Achievers - sales - partnership of 3 – rands
Residential sales - partnership of 3 - units & rands
Alet Ollemans - Chairmans Award
Long Service Awards - 15 years
Dirk Green
Judie Brugman
Chantele Kretschmann
Daniel van Renen
Administrator of the year - Sasha Lee Coetzee
Rookie of the year rentals - Kelly Bloom
Newcomer of the year - sales - Carin Botha
Daniel van Renen:
OOBA - Rands award
Lifetime achiever - sales - solitaire - units & rands
Residential sales - solitaire - units
Residential sales - solitaire - position 1 rands
Chairman’s award
Helen Moulster
Achiever - rentals - solitaire - rands
Achiever - rentals - rands
Connie Peet & Carol Zoutendyk
Regional winners -sales partnership of 2 - units & rands
Achiever - sales - partnership of 2 – carol
Lifetime achiever - sales - partnership of 2 – connie
Regional runners-up - highest commission
John Carpenter
Achiever - sales - solitaire - rands
Residential sales - solitaire - position 3 rands
Residential sales - solitaire - position 8 rands - Helene Gardner
