Good news for homeowners in South Africa

South African property owners, sellers, buyers and investors should not be concerned about the Expropriation Act, with the nation’s laws offering high levels of protection.

This is according to Samuel Seeff, chairman of the Seeff Property Group.

The Expropriation Act has come under extreme scrutiny, with many claiming that the law will be used by the state to take land without compensating property owners.

The law even made its way to the USA, where President Donald Trump said that he would cut all future funding to South Africa over allegations that the government is confiscating land.

Amidst the confusion, Seeff said that property owners should not be concerned as the new Act is very specific in terms of the conditions for expropriation.

Crucially, the protection of the “property clause” under Section 25 remains in place.

The ACT was largely expected within the property industry and replaced the Expropriation Act of 1975.

Seeff said that expropriation has been sensationalised, and conflated beyond the actual implications of the Act. Notably, arbitrary property deprivation is prohibited.

Although the Act provides for expropriation at nil compensation, there are several checks and balances found in the act.

This includes that the expropriation must be in the public interest, follow extensive consultation and follow the decisions of the court if no agreement is reached.

He further added that President Cyril Ramaphosa and the ANC have also been firm in their commitment that no land grabs will be tolerated.

Expropriation will have to be lawful and done with careful consideration to promote economic growth, development, and investor confidence.

Nil compensation is also considered for four potential scenarios envisaged in Section 12(3):

1. Where land is held solely for speculative appreciation without productive use or development intent;
2. State land which is unused, and unlikely needed for future core functions:
3. abandoned land where, despite being reasonably capable, the owner has demonstrably relinquished control; and
4. where the market value of the land is less than or equal to the state’s investment in its acquisition and improvement.

Residential property

Seeff also raised the Zimbabwe experience, highlighting that the process never involved residential homes.

Compensation has also since been paid for the expropriated farms.

There would also be additional implications when it comes to residences such as the banks and mortgage loans over properties.

Thus, business as usual is expected for the property market with the legal protections of private property in place.

The property market has also started 2025 on a better footing compared to the same period in 2024 off the back of three successive interest rate cuts, which have boosted affordability and confidence.

He added that many young professionals will be looking to get their foot on the property ladder.

There is also good value for buyers in inland provinces, such as Gauteng, which is seeing the highest influx of first-time buyers in the country.

Although the Western Cape and coastal hotspots are also expected to see a strong year, Gauteng is expected to see good momentum once stock levels start coming down and property values rise.