Residential property market sentiment in South Africa increased over a wide front in the final quarter of 2018 on the back of an improved economic performance, higher levels of growth in real household disposable income and consumption expenditure in the third quarter, as well as a lower consumer price inflation rate at year-end on the back of recent sharp drops in domestic fuel prices, which were the result of positive international oil price and rand exchange rate movements.
The overall national Absa Homeowner Sentiment Index score, which reflects the percentage of survey respondents with positive sentiment regarding residential property market conditions in the country, increased to 77% in the fourth quarter of 2018 from 72% in the third quarter. The Homeowner Sentiment Index sub-indices were all higher at a national level in the fourth quarter compared with the third quarter, indicating that consumers have over a wide front been more positive about market conditions and influencing factors towards the end of the year.
Property market sentiment is expected to remain largely positive and may improve further in 2019, which will be reflected in higher levels of market activity, buying patterns, transaction volumes, property price growth and the demand for and growth in mortgage finance.
Read more here: Absa Homeowner Sentiment Index Q4 2018