01 December 2021

The latest Absa Homeowner Sentiment Index (Absa HSI) indicates that confidence in the South African property market was at 84% in Q3, recovering to Q1 levels after the dip in Q2 in reaction to acts of violence and destruction to property at the beginning of July 2021.

Sentiment towards selling property also finally recovered to pre-lockdown levels. More respondents in Q3 believe that you can get a good price for your property, and another group of respondents believe that if you can no longer afford the property, then you should rather sell.

As the municipal elections were approaching at the time of collecting data, there was a growing concern from the investor respondent segment around political instability (80%) and Land expropriation risk (100%).

Salient points:

  • The reasons given for confidence in the South African property market were that property always increases in value (53%), and is a secure asset (52%). Additionally, more respondents cited improvement in the economy.
  • This increase in sentiment follows the South African economy growth of 1,2% in Q2.
  • All the sub-indices saw a positive change against Q2. This is indicative of sentiment towards property ownership and investing in existing property.
  • Compared to Q1, we saw a rise across all sub-indices in Q3 with the exception of the sentiment towards selling which has grown to exceed Q1.

About the Absa HSI

The Absa Homeowner Sentiment Index (HSI) indicates the consumer confidence level regarding the property market in South Africa.

While understanding the overall confidence level of consumers gives us an important overall reference and hence remains important, we also measure various aspects of consumers' confidence levels. We refer to these as "sub-indices" in this report and among these we measure sentiments about the current timing for buying, selling and investing in property.

Please click here for the full report. For any questions please do not hesitate to reach out to us at  absahomeloans@absa.co.za