Seeff: South Africa's local elections will shape property values

As voters head to the polls on 4 November 2026, Seeff Property Group chairman Samuel Seeff says local government decisions on infrastructure, services, security and planning can influence property values, investor confidence and demand across communities.

Seeff argues that while national elections shape broad macroeconomic sentiment, it is the local municipal elections that determine the day-to-day conditions of the specific areas and neighbourhoods where the country's real estate assets exist. He points to the Western Cape, and Cape Town and surrounding areas in particular, continuing to lead the country in demand and price appreciation despite economic stagnation compared with Gauteng and Johannesburg.

Gated estates that offer private security and reliable infrastructure attract high buyer demand and prices, while well-governed areas enhance business confidence and attract commerce, property development, economic growth and job creation. Conversely, dysfunctional municipalities tend to trigger asset depreciation, as crumbling infrastructure causes investors to lose confidence, tenants to relocate and security risks to rise.

Property developers and institutional investors make long-term financial commitments based on municipal capability, Seeff says, since the sector relies heavily on local governments for bulk water and electricity infrastructure. Competent local governance reduces costly administrative backlogs including zoning, building-plan approvals and bulk service connections, while poor governance and capacity force developers into expensive, self-sufficient utility models that stunt economic growth and undermine affordable housing delivery.

Seeff adds that neglected infrastructure and services raise the monthly costs of real estate through municipal rates and taxes and utility charges for electricity, water, refuse removal and cleaning. Decisions on urban planning, public transport corridors and affordable housing integration also reshape local property dynamics, making certain nodes more lucrative for future development.

Real estate is an illiquid asset class heavily dependent on political stability, and Seeff says buyers react tangibly to election results, with seminal changes in local governance often leading to an influx of semigration and investment into well-governed metros. He notes there is usually a brief slowdown before an election due to caution, but market certainty usually returns to unlock pent-up buyer demand once results settle and establish a predictable governance framework.