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.

Finance Minister Tito Mboweni’s budget has been received very positively, as demonstrated by the reaction from markets.

After last month's bleak budget speech by Finance Minister Tito Mboweni, South Africans are settling in for a long and uncertain road to economic recovery. While the inevitable increase in pressure on consumers’ pockets will unavoidably filter down into the property market, experts remain cautiously optimistic about property’s performance.

Gerhard Kotzé, MD of the RealNet estate agency group, says that while the real estate sector is currently performing very well in spite of the major contraction in the economy this year.

Berry Everitt, CEO of the Chas Everitt International property group, says the most positive news to emerge from the Medium-Term Budget Policy Statement delivered by Finance Minister Tito Mboweni today is that the economy is expected to “rebound” in the final quarter of 2020, and return to positive growth next year of 3,3%, following an expected decline of 7,8% this year.

Gerhard Kotzé, MD of the RealNet estate agency group, says that while the real estate sector is currently performing very well in spite of the major contraction in the economy this year, it will be difficult to sustain this momentum without the consumer and business confidence that comes from a growing economy in which new jobs are being created.

The Minister of Finance hit the nail on the head when he said that it is not only investors who need confidence, but also the average South African, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Finance Minister Tito Mboweni faces a tough juggling act this afternoon, when he presents the 2020 Medium Term Budget Policy Statement (MTBPS) in Parliament.

All eyes will be watching to see how the latest GDP figures impact the MPC’s interest rate decision next week, as well as eagerly awaiting the upcoming October Medium-Term Budget Policy Statement (MTBPS).

Apart from the tax reprieve announced by Finance Minister Tito Mboweni in the National Budget, with no major tax increases and even personal income tax relief across the board.