Absa
Absa’s latest Homeowners Sentiment Index (HSI) for the fourth quarter of 2025 shows a clear confidence gap across age groups in the South African property market, with sentiment in younger survey respondents outpacing that of their senior counterparts.
Participants under the age of 44 recorded greater confidence at 89% compared to the 81% Index score recorded for those over the age of 55. Confidence among homeowners and prospective buyers aged 45-54 was 85%.
“This trend aligns with South African Deeds Office data, which shows property buyers under the age of 44 remained active participants in the market during the last quarter, contributing half of all property purchases,” said Nondumiso Ncapai, managing executive at Absa Home Loans.
“South Africa’s younger buyers are demonstrating a sustained belief in the long‑term value of property ownership. Their confidence is reflected not only in sentiment, but in real activity.”
The survey once again highlighted growing sentiment among inland homeowners, who are more confident in South Africa’s property market than their coastal counterparts, a trend observed consistently over the last two years. This trend was observed across nearly all categories in the Index, except for selling sentiment, which was 7 percentage points higher among coastal respondents.
“This indicates a greater willingness to sell in coastal regions compared to inland provinces, possibly in response to shifting perceptions of market timing or regional demand,” Ncapai said.
The inland-coastal gap was most pronounced in the buying versus renting sub-index, where inland respondents scored 8 percentage points higher. Confidence in buying (+6%), investing (+4%), renovating (+3%), and overall consumer confidence (+3%) also registered higher among inland homeowners
Overall, homeowner sentiment rose 2 percentage points to 87% in Q4 2025, matching the highest level recorded since the Index began and the level last reached a year earlier. Confidence in the property market has remained elevated over the past 18 months, fluctuating between 84% and 87% since Q2 2024. This reflects a consistent degree of optimism among homeowners, even amid ongoing challenges in the broader economy. A combination of economic headwinds, such as high unemployment and low growth, alongside more supportive conditions, including easing inflation and a stable-to-slightly-declining interest rate environment, has contributed to the Index holding within a narrow range.
“There’s been a deep sense of optimism in the property market over the past year. A lot of South Africans still see property as a solid investment, and for first-time buyers, it’s something aspirational. Investors are still active too, especially with the demand for rental properties,” said Tshepo Mashashane, Absa Home Loans’ head of business strategy. “But we know many households are still under financial pressure, and that recovery is going to take time. Uncertainty globally, especially around new US trade policies, still contributes to the cautious optimism we see among existing and aspiring homeowners.”
Read the full report here.
