Positive sentiment is increasing for South African property, according to Absa’s latest Homeowner Sentiment Index (HSI), which measures sentiments of South African consumers with regard to various aspects of the residential property market.
An improving political situation and economic prospects has led to greater optimism regarding the residential property market in the country.
The overall HSI score, which reflects the percentage of survey respondents with positive sentiment regarding residential property market conditions, was marginally higher at 82 per cent in the fourth quarter of 2017 compared with 81 per cent in the third quarter.
Sentiment with regard to property purchase is very much on an upward trend, increasing to 70 per cent in the fourth quarter of last year, after reaching a low of 60 per cent in the first quarter of 2017.
Positive sentiment towards selling property also improved further to 41 per cent in the fourth quarter of 2017, rising from a low of 34 per cent in the second quarter of last year.
Crucially for overseas property investors interested in South Africa, the highest level of positive sentiment was seen for property investment, which stood at 83 per cent in the final quarter of last year.
Reasons given for the property investment optimism included it being ‘a good time to invest in property’, ‘property prices are relatively low and there are bargains in the market’, and ‘there is a demand for rental properties’.
Renovating property also saw a positive outlook expressed, with 79 per cent of survey respondents displayed positive sentiment in the fourth quarter of 2017 when asked whether it is a good time to renovate or do alterations to a property.
With an improving political and economic outlook, and positivity in the South African property market growing, now could be the time for overseas property investors to reconsider the ‘Rainbow Nation’.