Senior writer
Experts agree that the property market will improve as the rate starts lowering. The latest data from Absa’s Homeowners Sentiment Index indicates this is true. Consumer confidence is up, and the bank has identified five key trends that took shape in 2024.
1) Solo female homeowners – 66.6%, down from 66.7% in Q2
The trend towards single women applying to purchase homes more than men continues. In addition, many of these South African buyers are young, black females. This subgroup of homeowners is becoming key drivers of the property ownership space.
2) First-time homeowners – 48%, up from 47% in Q2
Most South Africans who currently apply for home loans are first-time buyers. Many of these consumers are hungry for better financial and property guidance to make more effective and informed decisions. Compared to other segments, this subsegment displayed rising optimism in the property market’s future in Q3.
3) Rental property conversion
Renting out properties for a secondary income continues to be an emerging trend, especially for short-term rentals. For renters, renting still provides a level of flexibility and affordability, but feedback from current renters reflects an increasing optimism that it is time to buy and enter the market. This could further strengthen the growth in first-time homeowner buying.
4) Going off-grid – 39% up from 37% in Q2
The appetite for alternative power solutions remains markedly lower than in Q1 (42%), when load shedding was last experienced on the national grid. Although slightly higher than Q2, Q3 remains swayed by the stability of the national power grid and the cost of investing in these systems. Fewer respondents also felt that alternative power solutions will markedly increase their property value at this stage.
5) Reducing energy cost
Reducing electricity costs is one of the most important factors for consumers when considering alternative energy solutions. This highlights homeowners’ concern for the escalating price of electricity.
Consumers are confident
Overall consumer confidence in the property market has remained stable in Q3, with notable improvements in confidence since a year ago. Selling property continues to garner low confidence, likely driven by the current buyer’s market.
- Overall consumer confidence remains at 84%
- 80% believe it’s the appropriate time to invest
- 48% (up one percent from Q2) believe it’s the right time to sell
What is driving positive versus negative buyer sentiment?
| The Positive | The Negative |
| • 44% believe it depends on the location of the property • 55% believe property always increases in value 51% believe property is and always will be a secure asset • 52% believe that property creates long-term income • 43% believe there is a high demand for rental properties | • 60% are concerned that the economy is unstable • 43% are concerned about the political instability in South Africa • 46% are concerned about the crime levels • 43% are concerned that property has become very expensive |
What about seller sentiment?
| The Positive | The Negative |
| • 55% believe property always accumulates in value • 51% believe you will make a good return • 46% believe that there is demand for rental properties • 48% believe that it is a good source of income • 44% believe there will be a high demand for property in the future | • 51% are concerned that the economy is not performing well • 34% are concerned that the Rand is weak • 50% are concerned that prices are high • 36% expressed concern that tenants cannot afford to rent • 39% are concerned about job security and unemployment and tenants can’t afford to pay |
Read full report here.
