8 October 2021
The latest Absa Homeowner Sentiment Index (Absa HSI) indicates that confidence in the South African property market has reduced by 4%, ending Q2 2021 at 77%.
Respondents who were not confident about the South African property market cited concerns around economic and political instability (up 25% compared to Q1 2021), the high levels of crime and unemployment (up 28% compared to Q1 2021), and land expropriation without compensation making property an uncertain investment.
Collected at the end of June into early July, the results reflect the sentiments of some respondents interviewed at the advent of acts of violence and destruction to property that were seen at the beginning of July 2021.
- Sentiment towards selling property was the only sub index that did not see a reduction against the previous quarter. Respondents continue to believe that you can get a good price for your property (although fewer respondents mentioned this as a driver).
- An emerging theme that came out strong was that of respondents believing that it is good to sell property when upgrading.
- The gap between buying and selling sentiment reduced, given the reduction in buying sentiment (rather than an increase in selling sentiment). This was seen across all respondent segments, except that of respondents who own investment properties – the only respondent group that saw an increase in buying sentiment and reduction in selling sentiment.
- This resulted in an enabling environment for property investors – one where they are bullish while other players are bearish.
Click here for the Absa Homeowner Sentiment Index Q2 2021 full report