Affordable housing initiatives highlighted at Sona 2026: what it means for homebuyers

The government's commitment to strengthening housing delivery, including the proposed State Property Company aimed at unlocking underutilised public land and buildings, creates an opportunity for meaningful public-private partnerships and urban regeneration.

The shift from state-built homes to subsidy-supported private ownership and rental is particularly significant, says Stephan Potgieter, CEO at BetterBond. 

“It will create much-needed opportunities for more aspirant buyers to enter the market, and meet the growing need for well-located, mixed-use developments that serve a rapidly urbanising population,” says Potgieter.

Reacting to the State of the Nation address (Sona) delivered by President Cyril Ramaphosa on Thursday, the bond originator says infrastructure investment remains a cornerstone of economic growth.

It adds that transport, water and energy systems are integral in property development and improved investor confidence.

“Water security is already influencing buyer behaviour and investor confidence in some regions. The proposed three-year investment in water and sanitation infrastructure will therefore be critical to sustaining new housing developments and protecting existing communities.

"The success of the proposed National Water Resource Infrastructure Agency will depend on efficient and transparent implementation and will hopefully resolve some of the service delivery issues affecting households in many parts of the country.” 

The CEO says that equally important is the President’s acknowledgement of dysfunction in many municipalities. He says local government performance directly affects property values and investor appetite, especially outside major metros.

“Structural reform in this sector will provide meaningful reassurance to homeowners and developers.”

BetterBond says the proposed overhaul of the skills development system has implications for long-term housing demand and economic participation. It adds that a more skilled workforce supports income growth, construction capacity and expansion of the property market.

Unfortunately, Potgieter says there was no mention of targeted incentives for first-time buyers, a critical segment of the housing market. “But hopefully, improved affordability thanks to lower inflation and interest rate relief will be sufficient to drive further first-time buyer activity.” 

Overall, he says the President’s address reinforces the importance of economic reform for housing opportunities. BetterBond says it is hopeful that these commitments will translate into tangible action and clearly defined implementation plans that deliver measurable progress.

“If the property sector continues to build on the momentum we have seen over the past few months, it remains well-positioned to contribute to growth, investment and social stability.” 

Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty, noted that Sona maintained a familiar tone this year.

According to Geffen, the address recycled key themes that have been present in every Cyril Ramaphosa Sona since 2019: reducing unemployment, tackling corruption, addressing entrenched social challenges, reducing crime, and reviving infrastructure.

“Yet the sense of déjà vu is unmistakable – the same aspirations delivered year after year have offered measurable progress that has, for the most part, fallen far short of promises made to the nation.” 

The CEO says SA can attract investment and shout the good news, but when the global money and the investors arrive in South Africa, it has to start the narrative with the bad news … because state-owned enterprises are broken and basic infrastructure, like water delivery, continues to fail,” she said, warning that the foundation beneath the rhetoric is still unstable.

There are a number of encouraging aspects from Sona 2026 for real estate, says Samuel Seeff, chairman of the Seeff Property Group.

“We welcome the positive signals from President Ramaphosa aimed at building on the "green shoots" in the economy with the “Grey list” exit, inflation at a 20-year low, a strengthened Rand, and reduced interest rates, setting the tone for an improved growth outlook.” 

The group says the massive R1 trillion allocation for public infrastructure over the next three years is vital, and welcome news. Investment in water, electricity, ports and roads is essential to unlock growth and development, it adds. 

“Municipal reform and service delivery. Property values are inextricably linked to working infrastructure and services. Urgent reforms are therefore necessary, and should focus on metros such as Johannesburg and Tshwane to entice investment and growth.”

Seeff says the focus on removing structural bottlenecks and administrative "red tape" hindering investment is vital. “Fully digitising the Deeds Office and accelerating zoning and approvals will drive construction investment and growth.”

With regards to governance and anti-corruption, it says a firm stance against crime, corruption and "construction mafias" is fundamentally vital to any well-functioning municipality, economy and residents, and must be a priority requiring urgent action.

The chairman says clearing Title Deed backlogs, expanding first home subsidies, repurposing buildings, and revitalising urban areas are welcomed to meet housing needs, and to create “tradeable” household assets.

Looking ahead, Seeff says the focus must now be on implementation as fast as possible to take advantage of the current positive economic momentum.

“We would also urge the government to focus on tax relief rather than hiking taxes in this year’s Budget. This should include raising the transfer duty exemption threshold to R1.3–R1.4 million to enable more first-time buyers to enter the market.” 

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