Latest news with #AbsaHomeLoans
The Citizen
a day ago
- Politics
- The Citizen
Are municipalities failing — or are residents just unable to pay? Why many are turning to off-grid living
The index revealed that many South Africans are choosing to live in areas where they can be independent of municipal water and electricity services — driven largely by a lack of trust in local government. In South Africa, municipalities play a very important role. They are responsible for providing the essential services that enable people to live with dignity, including clean, safe drinking water, reliable electricity, regular waste collection, and well-maintained roads. These are not luxuries. They are necessities that every resident relies on daily. However, these services do not come free. Just like any organisation, municipalities need money to keep running. They must pay workers, repair broken pipes and roads, and keep everything running smoothly. That money comes from the residents, who use the services and are expected to pay for them. It is a two-way street. If residents pay, municipalities can deliver. If municipalities deliver, residents are more willing to pay. But when one side stops doing their part, everything begins to fall apart. That is exactly what we are seeing now. According to the Absa Homeowners' Sentiment Index for the first quarter of 2025, many South Africans have lost faith in municipalities to provide these services. They are tired of poor service, broken promises, and being asked to pay for things they do not receive. ALSO READ: Salga's wage deal: To pay municipal workers more or to fix collapsing areas? What municipalities provide The Index revealed that South Africans want to live in areas where they do not have to depend on the municipality for water and electricity. They want homes with their own water systems, solar panels for electricity, and private services for waste and security. In short, they want to take back control. They are moving away from places where the government is supposed to help, and choosing places where they can help themselves. 76% of respondents indicated a desire to move away from state-supplied electricity, while 49% expressed interest in replacing municipal water sources. This is not just a small change; it is a big warning. It shows that trust is being lost. And if that trust is not repaired, the whole system could collapse. Both municipalities and residents must do their part. If they do not, the future of service delivery in South Africa looks very uncertain. Not depending on municipalities Nondumiso Ncapai, managing executive of Absa Home Loans, said that many households are actively adopting more sustainable practices in their daily lives, with 57% cultivating fruit and vegetable gardens and 42% using solar power for electricity. While 64% are exploring borehole and filtration systems, and 53% are considering rainwater harvesting to improve water security. 'We're seeing households take a more proactive stance on sustainability, not just through energy and water alternatives, but also through lifestyle changes that signal a broader recalibration of what homeownership means in today's environment.' ALSO READ: Townhouse or standalone house? Here is what and where 30-year-olds are buying Sentiment across the property market Overall homeowner sentiment declined slightly by 2 percentage points to 85% in Q1 2025, down from 87% in Q4 2024. She said the decline reflects growing uncertainty around the United States' policy direction and the South African Reserve Bank's decision not to implement a widely anticipated rate cut in March. Despite this, the current reading remains the second-highest since the Index's inception a decade ago. The average age of homebuyers continues to decline, with first-time buyers entering the market at 38 years old. People not selling The Index has also shown that not many people are selling properties, as most are still adopting a wait-and-see approach, anticipating that they will receive more money when they sell in the future. When it comes to renting, many people indicated that they had saved enough for a deposit or sought more space, while others continued to favour renting for its flexibility and perceived affordability. At the provincial level, the highest overall homeowner sentiment was recorded in Limpopo (93%), the Free State (92%), marking its highest score on record, and the Northern Cape (92%). 'Migration trends continue to shape local dynamics: the Western Cape remains a net beneficiary of inward migration, although the pace has slowed over the past three quarters. 'The Eastern Cape continues to record positive net migration, while KwaZulu-Natal has seen an uptick in outward migration.' NOW READ: SA's poor service delivery linked to almost R500 billion spent on SOE bailouts
eNCA
a day ago
- Business
- eNCA
Homebuyers' average age continues to decline
JOHANNESBURG - Despite tough economic times, the average age of first-time homebuyers has declined to 38 years old, and those looking to invest, to 43 years old. This is according to the latest Absa Homeowners Sentiment Index for the first quarter of the year. For more trends, we are joined by Nondumiso Ncapai, Managing Executive at Absa Home Loans.
IOL News
2 days ago
- Business
- IOL News
South African homeowners show resilience in property market amid challenges
home ownership, property, house, investment, expenses, home buyer, bond repayment, insurance, maintenance, levies The Absa Homeowners Sentiment Index for the first quarter of 2025 was expanded to include new questions exploring consumer perspectives on sustainable living and emerging trends likely to influence this in the future. The index showed a growing aspiration among South African homeowners to live off-grid, with many seeking to replace municipal and state-provided services – particularly electricity and water – in pursuit of greater sustainability and self-sufficiency. Image: File Illustration Homeowner sentiment fell only 2 percentage points to 85% in the first quarter, still the second highest reading for Absa's Homeowners Sentiment Index (HSI) in a decade, which indicates that the momentum of positive sentiment is likely to continue into 2025. The authors of the latest HSI, first developed in 2015 as an indicator of the state of consumer confidence in South Africa's property market, said the dip in confidence was likely due to uncertainty around US policy direction and the South African Reserve Bank's decision not to implement a widely anticipated interest rate cut in March. The index results are broadly in line with the latest FNB Property Market Report that was released recently, which showed there was a continued, albeit modest, upwards trajectory in home values in the first quarter, which had averaged 2.2% year-on-year growth in April, up from 2% in March. The HSI showed that buying sentiment held steady at 77% in the first quarter, maintaining gains in the previous quarter. The average age of homebuyers also continued to decline, with first-time buyers entering the market at 38, and property investors at the age of 43. Selling sentiment fell marginally to 49%, down from 51% in the fourth quarter of 2024. Many sellers are still adopting a wait-and-see approach, anticipating that they will get better prices in the future, said Nondumiso Ncapai, Managing Executive: Absa Home Loans. In the first quarter of 2025, the Index was expanded to include new questions exploring consumer perspectives on sustainable living and emerging trends likely to influence this in the future. The index showed a growing aspiration among South African homeowners to live off-grid, with many seeking to replace municipal and state-provided services – particularly electricity and water – in pursuit of greater sustainability and self-sufficiency. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'We're seeing households take a more proactive stance on sustainability, not just through energy and water alternatives, but also through lifestyle changes that signal a broader recalibration of what homeownership means in today's environment,' said Ncapai. More than three-quarters (76%) of respondents indicated a desire to move away from state-supplied electricity, while nearly half (49%) expressed interest in replacing municipal water sources. Households were also adopting more sustainable practices in their daily lives, with 57% cultivating fruit and vegetable gardens and 42% using solar power for electricity. A majority of homeowners (64%) are exploring borehole and filtration systems, while 53% are considering rainwater harvesting to improve water security. Buy versus rent sentiment dropped by 4 percentage points in the first quarter. While many renters noted they had now saved enough for a deposit or sought more space, others continued to favour renting for its flexibility and perceived affordability. Renovation sentiment fell by 3 percentage points to 79%, with most homeowners citing value adding improvements and quality-of-life enhancements as primary motivators. Rising input costs remain a barrier for many. Investment sentiment held firm at 85%, sustaining its highest level on record since the Index began. While concerns around economic conditions and the country's long-term trajectory remain, property continues to be viewed as a resilient investment vehicle.
IOL News
5 days ago
- Business
- IOL News
South African homeowners shift towards off-grid living, ditching municipal services for sustainability
Solar installations on properties has been on the rise in South Africa. Image: Supplied More South African homeowners aspire to live off-grid, with many seeking to replace municipal and state-provided services-particularly electricity and water-in pursuit of greater sustainability and self-sufficiency. This is according to Absa's Homeowners Sentiment Index (HSI) for the first quarter of this year. More than three-quarters (76%) of respondents indicated a desire to move away from state-supplied electricity, while nearly half (49%) expressed interest in replacing municipal water sources. In parallel, households are said to be actively adopting more sustainable practices in their daily lives, with 57% cultivating fruit and vegetable gardens and 42% using solar power for electricity. A majority of homeowners (64%) are exploring borehole and filtration systems, while 53% are considering rainwater harvesting to improve water security. 'We're seeing households take a more proactive stance on sustainability, not just through energy and water alternatives, but also through lifestyle changes that signal a broader recalibration of what homeownership means in today's environment,' said Nondumiso Ncapai, managing executive at Absa Home Loans. First developed in 2015, the Absa HSI is an indicator of the overall state of consumer confidence in South Africa's property market. In this year's first quarter, the Index was expanded to include new questions exploring consumer perspectives on sustainable living and emerging trends likely to influence this in the future. Overall homeowner sentiment declined slightly by 2 percentage points to 85% in this period, down from 87% in the last quarter of last year. The dip reflects growing uncertainty around US policy direction and the South African Reserve Bank's decision not to implement a widely anticipated rate cut in March. Despite this, the current reading was said to remain the second-highest since the Index's inception a decade ago. Buying sentiment held steady at 77% in this year's first quarter, maintaining the gains recorded in the previous quarter. The average age of homebuyers continued to decline, with first-time buyers now entering the market at 38. Selling sentiment declined marginally to 49%, down from 51% in the last quarter of last year. Many sellers were said to still be adopting a wait-and-see approach, anticipating that they would get better prices in the future. Buy-versus-rent sentiment dropped by 4 percentage points in this year's first quarter. While many renters noted they had now saved enough for a deposit or sought more space, others continued to favour renting for its flexibility and perceived affordability. Renovation sentiment fell by 3 percentage points to 79%, with most homeowners citing value-adding improvements and quality-of-life enhancements as primary motivators. Rising input costs were said to remain a barrier for many. Investment sentiment held firm at 85%, sustaining its highest level on record since the Index began. While concerns around economic conditions and the country's long-term trajectory remain, property continues to be viewed as a resilient investment vehicle. At a provincial level, the highest overall homeowner sentiment was recorded in Limpopo (93%), the Free State (92%), marking its highest score on record, and the Northern Cape (92%). Migration trends continued to shape local dynamics with the Western Cape remaining a net beneficiary of inward migration, although the pace has slowed over the past three quarters. The Eastern Cape continued to record positive net migration, while KwaZulu-Natal has seen an uptick in outward migration. Ncapai said the sustained strength in overall sentiment, particularly in buying and investment confidence, signals not only the resilience of South African consumers, but also a growing optimism around a medium- to long-term recovery in property market activity. 'Despite near-term pressures, there is a clear belief that property remains a reliable store of value and a pathway to financial security. The momentum in positive sentiment over the last three quarters is expected to continue into the rest of 2025.' Timely relief for homeowners was signalled by the 0.25% interest rate announced on Thursday by the South African Reserve Bank's Monetary Policy Committee, which will hopefully act as a catalyst for first-time buyers entering the market, according to Paul Stevens, CEO of Just Property. 'The cut, along with lower-than-expected inflation numbers, should inject fresh momentum into the property market, lowering monthly bond repayments and improving affordability for first-time buyers and investors alike. "For Just Property clients, it may open the door to upgrades, refinancing or entering the market sooner,' Stevens said. The property company said that broadly, a cut will support economic activity, particularly in consumer-sensitive sectors like property and retail, although the SARB will be mindful of inflationary risks going forward. Independent Media Property
IOL News
30-04-2025
- Business
- IOL News
Choosing Between New and Secondhand Homes: Essential Insights for Buyers
A decision whether to buy a new property or a second-hand one requires you to get your ducks in a row. Image: Freepik One of the biggest decisions buyers face is whether to invest in a new development or opt for a secondhand home when purchasing a property. Last month, the Absa Homeowner Sentiment Index, a barometer of consumer confidence across six key metrics in the country's housing market, showed that consumer confidence in South African real estate soared to the highest level in a decade. South African consumers were feeling upbeat with their confidence in the future of residential property climbing to 87% in the final quarter of 2024. This was the highest level recorded in a decade, with the dominance of first-time buyers in the market relative to other segments an ongoing trend. Sentiment to buy and invest in property returned strong results in Q4 2024, while confidence to sell surpassed the 50% mark after trailing below this midpoint for the last two years – good news for the future of property stock levels in the market. Giovanni Gaggia, CEO of Real Estate Services, says one of the standout advantages of buying in a new development is that the property is brand new-often accompanied by developer guarantees and warranty coverage, offering peace of mind. 'New developments typically feature modern, energy-efficient designs built to the latest standards. They come with developer guarantees that protect your investment and reduce unexpected repair costs,' Gaggia said. In February, Nondumiso Ncapai, the managing executive at Absa Home Loans, said first-time homebuyers tended to prioritise secure complexes and estates offering amenities like backup power, fibre internet, and water security. She said greater support for property developers and collaborations with banks and the government would assist in providing environmentally sustainable homes for this market at more affordable prices. The CEO said another big benefit is security, as new developments are usually designed with safety as a priority - think access-controlled gates, CCTV, electric fencing, and often 24-hour security patrols. 'In most cases, these security features are already included in your monthly levies. That means buyers don't have to factor in additional costs for private security. '
