Confidence in the South African property market fell 3% in Q1 2020

The Absa Homeowner Sentiment Index (HSI) shows that confidence in the South African property market fell by 3% in Q1 2020 from Q4 2019.

Respondents showed concern about the economic outlook, despite the interest rate cut of 0.25% in January 2020 and another 1.00% in March 2020.

Declining to 73% confidence in Q1 2020, the overall result indicates that sentiment in the market tends towards reduced activity – with fewer respondents considering it an appropriate time to buy, invest or sell property.

While Q4 2019 had shown that concerns around political instability were subsiding and property’s appeal as a secure asset increasing, the picture changed in Q1 2020 due to the current economic uncertainty – many respondents citing COVID-19 specifically.

The Absa Homeowner Sentiment Index (HSI) determines consumer sentiment regarding the property market conditions in general in South Africa.

Source: Propertywheel.co.za | https://propertywheel.co.za/2020/05/con%ef%ac%81dence-in-the-south-african-property-market-fell-3-percent-in-q1-2020/

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