Consumer confidence in South Africa's residential property market surged to 87% in the fourth quarter of 2024, marking the highest level in ten years, according to Absa's 'Homeowners Sentiment Index (HSI).' The report highlights a continued trend of first-time buyers dominating the market.
In the fourth quarter, sentiment to buy and invest in property showed strong results, with confidence to sell surpassing the 50% threshold for the first time in two years, signaling a positive outlook for property stock levels. Absa Home Loans managing executive Nondumiso Ncapai noted that these results reflect the resilience of South African consumers, who remain optimistic despite emerging from a prolonged cost-of-living crisis.
The sentiment to buy increased to 77%, up from 73% in the previous quarter, continuing an upward trend since the second quarter of 2023. Selling sentiment also rose to 51%, with some sellers indicating a need to free up funds. Additionally, 77% of respondents expressed confidence in buying rather than renting, driven by the belief that homeownership is more beneficial.
Investment sentiment climbed 5% to 85%, the strongest growth among key metrics, as investors see an opportunity to expand their portfolios amid signs of economic recovery. Optimism around property renovations also grew, with 82% of respondents planning improvements for aesthetic or maintenance reasons.
First-time buyers are expected to remain key market players, accounting for 53% of property registrations in 2024. Ncapai pointed out that recent interest rate cuts and positive movements in House Price Indices, including the Absa House Price Index, are likely to support the property market's gradual recovery into 2025.
While South African consumers are just beginning to recover from the cost-of-living crisis, the aspiration for homeownership remains strong, with a significant number of potential buyers eager to enter the market, according to Ncapai.
In the fourth quarter, sentiment to buy and invest in property showed strong results, with confidence to sell surpassing the 50% threshold for the first time in two years, signaling a positive outlook for property stock levels. Absa Home Loans managing executive Nondumiso Ncapai noted that these results reflect the resilience of South African consumers, who remain optimistic despite emerging from a prolonged cost-of-living crisis.
The sentiment to buy increased to 77%, up from 73% in the previous quarter, continuing an upward trend since the second quarter of 2023. Selling sentiment also rose to 51%, with some sellers indicating a need to free up funds. Additionally, 77% of respondents expressed confidence in buying rather than renting, driven by the belief that homeownership is more beneficial.
Investment sentiment climbed 5% to 85%, the strongest growth among key metrics, as investors see an opportunity to expand their portfolios amid signs of economic recovery. Optimism around property renovations also grew, with 82% of respondents planning improvements for aesthetic or maintenance reasons.
First-time buyers are expected to remain key market players, accounting for 53% of property registrations in 2024. Ncapai pointed out that recent interest rate cuts and positive movements in House Price Indices, including the Absa House Price Index, are likely to support the property market's gradual recovery into 2025.
While South African consumers are just beginning to recover from the cost-of-living crisis, the aspiration for homeownership remains strong, with a significant number of potential buyers eager to enter the market, according to Ncapai.
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