{"id":860876,"date":"2026-05-20T11:30:00","date_gmt":"2026-05-20T09:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=860876"},"modified":"2026-05-20T11:30:38","modified_gmt":"2026-05-20T09:30:38","slug":"best-news-in-11-years-from-homeowners-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/860876\/best-news-in-11-years-from-homeowners-in-south-africa\/","title":{"rendered":"Best news in 11 years from homeowners in South Africa"},"content":{"rendered":"\n

Absa’s latest Homeowners Sentiment Index (HSI) has reached its best level since its initiation, with the South African property market showing sustained optimism. <\/p>\n\n\n\n

The latest HSI for the first quarter of 2026 shows that overall consumer confidence in South Africa\u2019s property market grew by 1 percentage point to 88%. <\/p>\n\n\n\n

This is the highest level recorded since the Index was launched in 2015, with the latest figures continuing to show the upward trend seen since 2024. <\/p>\n\n\n\n

The index is designed to provide an overall assessment of consumer confidence in South Africa\u2019s property market, with additional insights into consumer confidence in buying, selling, and investing in property.<\/p>\n\n\n\n

Absa said that the continued improvement in the index points to a sustained optimism in the country\u2019s residential property market.<\/p>\n\n\n\n

The Big Four bank said the overall score was supported by stronger sentiment across all HSI categories. <\/p>\n\n\n\n

It added that buying, selling, investing, and renovating all recorded gains in Q1 2026 from the final quarter of 2025.<\/p>\n\n\n\n

Selling sentiment saw the largest increase, by 4 percentage points, followed by buying and renovating, each by 3 percentage points<\/p>\n\n\n\n

Investment sentiment rose by 2 percentage points. All of the HSIs’ subindices are now at their highest levels to date.<\/p>\n\n\n\n

\u201cThe main driver of positive sentiment is that many South Africans believe property is a secure asset for investment,\u201d said Tshepo Mashashane, Executive: Strategy & Strategic Communication at Absa Home Loans. <\/p>\n\n\n\n

\u201cHomeownership is also an aspirational purchase for many South Africans entering the market for the first time, reflected in the high number of home loan applications from the first-time homebuyer segment.” <\/p>\n\n\n\n

Mashashane added that investors are set to play a key role in the market amid ongoing demand for rental properties. <\/p>\n\n\n\n

The index also showed stronger confidence among younger South Africans participating in the property market. <\/p>\n\n\n\n

Respondents aged 25-34 had the highest confidence level at 90%, accounting for 27% of buyers over the last year. <\/p>\n\n\n\n

Respondents aged between 35 and 44, and 45 and 54, recorded confidence levels of 88%, while respondents over the age of 55 were the least confident at 84%.<\/p>\n\n\n\n

Confidence around renovations also reached a record high of 82%, which was driven by the belief that renovations increase property value and can deliver stronger returns when selling. <\/p>\n\n\n\n

Absa added that high levels of investment confidence were also observed among both existing and aspiring investors, with many believing in property as a long-term investment choice.<\/p>\n\n\n\n

Huge risks for the property market<\/h2>\n\n\n
\n
\"\"<\/a><\/figure><\/div>\n\n\n

\u201cThe developments in the Middle East had not affected homeowner sentiment at the time the survey was conducted, but only time will tell whether there is a delayed impact as the macroeconomic environment changes,\u201d said Mashashane. <\/p>\n\n\n\n

\u201cHigher fuel prices and the effect this could have on inflation and the interest rate outlook may still influence sentiment in the months ahead.\u201d<\/p>\n\n\n\n

The South African Reserve Bank’s (SARB’s) Monetary Policy Committee (MPC) will announce its next interest rate decision on Thursday, 28 May 2026. <\/p>\n\n\n\n

Given the rapid rise in fuel prices and the risks to inflation, the SARB is widely expected to increase the repo rate from its current level of 6.75%. <\/p>\n\n\n\n

The rapid rise in inflation caused by the Iran War dampened positive inflation expectations and interest rates from the start of the year. <\/p>\n\n\n\n

While the MPC was widely expected to cut interest rates at the start of the year as inflation was under control, the Middle East conflict has led to expectations of a hiking cycle. <\/p>\n","protected":false},"excerpt":{"rendered":"

Absa’s latest Homeowners Sentiment Index has reached its best level since 2015, but expected interest rate increases threaten the outlook.<\/p>\n","protected":false},"author":95,"featured_media":816384,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[29,3619],"class_list":["post-860876","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-absa","tag-sarb"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/860876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=860876"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/860876\/revisions"}],"predecessor-version":[{"id":860899,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/860876\/revisions\/860899"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/816384"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=860876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=860876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=860876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}