Latest news with #HomeownersSentimentIndex
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
