6 REI MAGAZINE JULY
Investing with Confidence and the Right Knowledge for Building Viable Property Businesses
The latest Absa Homeowner Sentiment Index for Q1 2024 reveals a cautiously optimistic consumer outlook in South Africa ’ s property market , with notable improvements in sentiments toward buying , investing , and renovating properties . However , concerns about the economy and affordability still persist .
Buying Property : Sentiment improved by 8 % to 72 % in Q1 2024 . Key drivers include property as a good investment ( 63 %), value appreciation ( 51 %), and profit potential ( 41 %). Negative influences are high interest rates ( 55 %) and economic instability ( 55 %).
Selling Property : Sentiment increased by 1 % to 49 %. Positive aspects include good property prices ( 59 %), financial constraints ( 39 %), and upgrading ( 49 %). Negative aspects are economic instability ( 46 %) and a preference to retain property as an investment ( 42 %).
Investing in Property : Sentiment improved by 6 % to 82 %, the highest since Q1 2021 . Positive factors include value accumulation ( 54 %), good return potential ( 52 %), and rental demand ( 53 %). Negative factors are poor economic performance ( 56 %) and a weak Rand ( 44 %).
Choosing Ownership over Renting : Sentiment increased by 6 % to 73 %. Positive influences are ownership preference ( 51 %), affordability ( 48 %), and higher rent costs ( 45 %). Negative influences include the flexibility of renting ( 47 %) and high maintenance costs ( 39 %).
Property Renovation Timing : Sentiment increased by 4 % to 79 %. Positive influences include property value increase ( 62 %), better returns when selling ( 57 %), and having cash on hand ( 49 %). Negative influences are poor economic performance ( 40 %) and expensive materials ( 44 %).
Choosing Ownership over Renting : Sentiment increased by 6 % to 73 %. Positive influences are ownership preference ( 51 %), affordability ( 48 %), and higher rent costs ( 45 %). Negative influences include the flexibility of renting ( 47 %) and high maintenance costs ( 39 %).
Property Renovation Timing : Sentiment increased by 4 % to 79 %. Positive influences include property value increase ( 62 %), better returns when selling ( 57 %), and having cash on hand ( 49 %). Negative influences are poor economic performance ( 40 %) and expensive materials ( 44 %).